E-Invoicing in the UK: Complete Guide

E-Invoicing in the UK: Current Framework

Electronic invoicing is gaining increasing attention in the United Kingdom as the government explores ways to modernise business processes and improve efficiency across the economy. While e-invoicing is not currently mandatory for most transactions in the UK, recent policy developments indicate a growing interest in expanding its use across both the public and private sectors.

In particular, the UK government has launched a consultation to examine how electronic invoicing could be promoted more widely among businesses. The consultation reflects a broader global trend toward digitalisation of invoicing and tax reporting processes.

For companies operating in the UK or trading with UK organisations, understanding the evolving e-invoicing landscape is important. Technologies such as the Peppol network are increasingly recognised as a potential infrastructure for secure electronic invoice exchange. Through its Peppol capabilities, Marosa enables businesses to issue and receive electronic invoices in a structured and compliant way.

The Current State of E-Invoicing in the United Kingdom

Unlike several EU countries, the UK has not introduced a general mandate requiring businesses to issue e-invoices. Most invoices are still exchanged as PDF documents or paper invoices, and businesses are free to agree on the invoicing format with their trading partners.

However, e-invoicing is already used in certain sectors, particularly within public procurement and among large organisations that have adopted automated purchasing and finance systems.

A notable example is the National Health Service (NHS). As part of the UK government’s e-procurement strategy introduced in 2014, the NHS began transitioning its supply chain to digital procurement and invoicing processes. In 2019, the NHS moved its supply chain onto the Peppol network, enabling the structured exchange of procurement and invoicing documents between suppliers and NHS organisations.

Since June 2022, e-invoicing has become mandatory for suppliers trading with NHS entities, including hospitals and other healthcare organisations across the UK. Suppliers working with NHS bodies are required to submit invoices through the Peppol network using the Peppol BIS Billing 3.0 format.

In addition to invoices, suppliers may also be required to exchange other procurement documents through the Peppol infrastructure during the purchasing process. These can include documents such as purchase orders, despatch advice messages, and advanced shipping notices, enabling greater automation across the procurement lifecycle.

This requirement means that businesses supplying goods or services to NHS organisations must be able to generate structured electronic invoices and transmit them through the Peppol network via an authorised access point provider.

While this obligation currently applies to NHS suppliers rather than the entire UK economy, it demonstrates how structured e-invoicing is already being implemented in parts of the public sector and may serve as a foundation for broader adoption in the future.

Despite this progress, the adoption of structured e-invoicing across the broader UK economy remains relatively limited compared with countries that have introduced national mandates. This has prompted the government to examine how e-invoicing adoption could be increased.

UK Government Confirms Plans for Mandatory E-Invoicing

The UK government launched a consultation on promoting electronic invoicing across UK businesses and the public sector, which concluded on 7 May 2025.

The consultation response, updated on 26 November 2025, confirms the government’s intention to move toward a mandatory e-invoicing framework for UK businesses by 2029.

Following the consultation, the government confirmed that it will develop a national e-invoicing framework designed to increase adoption across both the public and private sectors. The objective is to create a system that allows businesses to exchange structured electronic invoices in a standardised and interoperable way.

Additionally, the Government announced that it will not introduce a real-time reporting obligation in 2029. Instead, it may be considered later, building on the new e-invoicing infrastructure.

The proposed timeline indicates that mandatory electronic invoicing requirements could be introduced by 2029, giving organisations several years to prepare for the transition: 

• January 2026 – Stakeholder Collaboration: the government will begin detailed engagement with businesses, software providers, tax advisers and other stakeholders. This will help define the UK’s e-invoicing model, standards and technical requirements.
• Budget 2026 – Publication of the Implementation Roadmap: A full roadmap will be published, providing clear information on timelines, standards and guidance. This will help businesses understand what systems they will need, how to comply and when to prepare.
• 2029 – E-Invoicing Becomes Mandatory for All VAT Invoices: From 2029, UK VAT-registered businesses must issue and receive VAT invoices electronically using approved e-invoicing standards.

Learn more about the consultation response for mandatory e-invoicing.

The government has also emphasised the importance of interoperability and open standards, recognising that businesses should be able to exchange electronic invoices regardless of the accounting or ERP systems they use. Technologies such as the Peppol network are therefore likely to play an important role in enabling the secure and standardised exchange of electronic invoices.

For multinational organisations already operating in countries with mandatory e-invoicing regimes, these developments suggest that the UK is moving toward greater alignment with international digital invoicing practices.

Businesses that adopt structured e-invoicing solutions early will be better positioned to adapt to the upcoming framework and avoid last-minute system changes when mandatory requirements are introduced

Peppol and Interoperable E-Invoicing in the UK

One of the key technologies considered in discussions around e-invoicing adoption is the Peppol network. Peppol is an international infrastructure that enables the secure exchange of structured electronic business documents, including invoices, between organisations.

Through Peppol, invoices can be transmitted in standardised formats that allow automated processing by accounting and ERP systems. This reduces the need for manual intervention and helps improve data accuracy.

The UK already participates in the Peppol network and several public sector organisations use Peppol to exchange procurement documents and electronic invoices. The infrastructure provides a framework that allows organisations to exchange invoices with domestic and international trading partners using common standards.

Because Peppol is widely used across Europe and beyond, it is increasingly seen as a practical solution for enabling cross-border electronic invoicing while maintaining interoperability between systems.

How Marosa Supports Peppol E-Invoicing in the UK

As electronic invoicing adoption continues to grow, businesses require solutions that can connect them to the relevant infrastructure and ensure compliance with evolving standards.

Marosa supports businesses by enabling electronic invoicing through the Peppol network. As a Peppol service provider, Marosa allows companies to exchange structured invoices securely with their customers and suppliers.

Discover the status of e-invoicing implementation in Europe.

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