UK businesses rethink tax tech, e-invoicing takes center stage

By Gloria Methri

A striking 87% of finance leaders across the UK and Ireland believe that the benefits of mandated e-invoicing outweigh the challenges. This is a powerful signal of confidence in digital tax processes as a driver of business success.

This consensus among business leaders marks a shift in how companies perceive government-imposed digital systems: not as compliance burdens, but as tools for improving the bottom line. With organisations reporting increased financial health, enhanced operational efficiency, and better decision-making through improved data, e-invoicing is fast becoming a strategic imperative.

This finding lands at a critical moment. As HMRC’s consultation on standardising e-invoicing draws to a close on 7 May, the voice of the UK’s business community appears unified in favour of building a future-ready invoicing framework.

Mandates Yield Tangible Gains

The data, released by global tax technology provider Vertex Inc., shows that 82% of businesses in the UK and Ireland have already seen improvements in financial performance thanks to e-invoicing mandates. Globally, efficiency gains (59%) and cost savings (55%) are reported as major benefits, suggesting that digital invoicing delivers value well beyond regulatory compliance.

Further, 87% of global respondents said e-invoicing improves data accuracy and financial reporting—factors that support stronger internal governance and more agile policy responses in a volatile economic environment.

Without a reliable digital invoicing infrastructure, businesses risk significant revenue disruption. Global enterprises estimate that nearly half (47%) of their sales would be affected if they couldn’t issue or receive invoices—a figure expected to rise to 57% within two years. In the UK, the anticipated impact is already at 56% over the same period, underscoring the urgent need for robust systems.

Tackling Challenges with AI

Despite broad support, implementing e-invoicing does come with obstacles. Over half (54%) of global businesses cite staff training and adapting to new compliance workflows as key difficulties. In response, UK businesses are turning to artificial intelligence for support—52% are already using AI to streamline e-invoicing operations, particularly for managing customer queries and support.

As the UK government weighs its next steps, the study reveals that businesses are not only ready for change but are already reaping the benefits. The opportunity now lies in extending these gains across the economy through standardised, nationwide mandates. With strong momentum and broad-based business backing, the UK is well-positioned to lead in digital tax transformation.