HMRC’s 2026 Transformation Roadmap update sets out several changes to the way VAT services will be administered. These are not changes to VAT rates or VAT liability rules. The focus is on improving how businesses interact with HMRC, particularly around VAT repayments, registration, adviser access and e-invoicing.
Most of the immediate VAT changes are expected during 2026 to 2027, with mandatory e-invoicing due to follow from April 2029.
Improved VAT repayment tracker
HMRC is introducing an improved VAT repayments tracker, with initial functionality expected to be available to customers during 2026 to 2027.
This should give businesses better visibility over the progress of VAT repayments and reduce the need to contact HMRC for updates. It will be particularly useful for businesses that are often in a repayment position, such as exporters, businesses making zero-rated supplies, or those making significant input VAT claims.
VAT registration process improvements
HMRC is also planning further improvements to the VAT registration process during 2026 to 2027. These changes will be introduced gradually and are expected to include:
- simpler VAT application journeys;
- better upfront guidance; and
- fewer avoidable delays in registration decisions.
The aim is to make the registration process clearer and reduce delays where the correct information is provided at the outset.
Multiple tax advisers for VAT
HMRC will introduce new VAT functionality allowing customers to authorise multiple tax advisers.
This should be helpful for businesses that use different advisers for different areas of VAT support. For example, one adviser may deal with VAT compliance, while another assists with specialist VAT advice, systems work, customs matters or disputes.
It may also be useful for larger businesses and groups where VAT responsibilities are split across different teams or advisers.
Mandatory VAT e-invoicing from April 2029
The most significant longer-term change is mandatory VAT e-invoicing. As announced at Autumn Budget 2025, VAT e-invoicing for business to business and business to government transactions will become mandatory from April 2029.
Full guidance, standards, technical specifications and legislation are expected by the end of 2027 to 2028.
Businesses should start thinking about what this could mean for their invoicing processes, accounting software, ERP systems, VAT coding, invoice approvals and customer and supplier data.
E-invoicing roadmap at Budget 2026
HMRC will work with the Department for Business and Trade to publish an e-invoicing roadmap at Budget 2026.
This roadmap should set out the key milestones leading up to implementation in April 2029 and build on the work taking place with industry representatives during 2026.
For businesses, this should provide a clearer timetable for preparation and help identify when system or process changes may be needed.
How Xeinadin can help
The roadmap should make some VAT processes easier, but businesses will still need to make sure their VAT data, systems and controls are fit for purpose.
Xeinadin’s VAT team can help you understand what the changes mean for your business, from VAT registrations and repayment claims to HMRC queries and preparing for e-invoicing. If you would like to talk through the potential impact, please get in touch with our VAT team.
