E-Invoicing in the UK: Complete Guide

Latest Update (October 2026): UK Publishes Its E-Invoicing Roadmap

On 28 October 2026, HMRC and the Department for Business and Trade published the Roadmap for e-invoicing implementation. It confirms that from 1 April 2029, UK VAT-registered persons, including public sector bodies, must be able to issue and receive VAT invoices as e-invoices, unless a specific exemption applies. There is no phasing by business size, and Peppol will be the UK's core interoperability framework.

The detailed requirements will be published between October 2027 and April 2028, giving businesses at least 12 months to prepare. Read our summary of the roadmap.

E-Invoicing in the UK: What Is Changing in 2029

Today, UK businesses are free to agree on the invoicing format with their trading partners, and most invoices are still exchanged as PDFs or on paper. That changes in 2029. Under the new rules, VAT invoices will have to be issued as structured e-invoices: invoice data exchanged directly between the supplier's and the buyer's systems in a standard format. PDFs, Word documents, images and HTML invoices will not count as e-invoices.

The government's case for a mandate is that voluntary adoption has stayed fragmented: businesses only benefit when their trading partners can also send and receive e-invoices. It also links e-invoicing to tackling late payments, which cost the UK economy £11 billion a year, with small businesses spending 86 hours a year on average chasing them. Read the government's reasoning in the roadmap.

The mandate follows the consultation response published in November 2025, in which the government confirmed a decentralised model and said it would not introduce real-time reporting alongside the 2029 mandate. Learn more about the consultation response. At Budget 2026, HMRC also opened a separate consultation on whether e-invoice data could later be used for digital reporting. No decisions have been taken on that yet.

Who Is in Scope?

From 1 April 2029, the requirement applies whenever a VAT invoice is required, that is, for taxable supplies between VAT-registered persons in the UK. This covers:

• VAT-registered businesses, sole traders, partnerships and charities
• Public sector bodies registered for VAT
• Non-established taxable persons (NETPs), which will be subject to the same invoicing rules as UK-based businesses

E-invoices will not be required for:

• Sales to consumers, since VAT invoices are not required for B2C supplies
• Cross-border transactions, although businesses may issue e-invoices voluntarily by agreement with their overseas customers
• Exempt, zero-rated or out-of-scope transactions where no VAT invoice is needed, although a commercial e-invoice can be sent voluntarily

Exemptions will be tightly defined. The main one will cover digitally excluded VAT-registered persons, following the approach already used for Making Tax Digital for VAT.

Implementation Timeline

• Spring 2027: public technical consultation on the UK e-invoicing standards and Access Point certification requirements, and first guidance on EDI and legacy systems. The primary legislation, introduced in Finance Bill 2026, is expected to become law, subject to Parliamentary approval.
• Autumn 2027: further guidance on EDI and legacy systems
• End of 2027: guidance for specific groups within the VAT-registered population
• October 2027 to April 2028: publication of the key requirements, covering scope, exclusions, standards, guidance, business identifiers and requirements for software providers
• April 2028: updated VAT guidance, details of taxpayer obligations, and the exemption process for digitally excluded persons
• Spring to Winter 2028: readiness testing with software providers
• Winter 2028: infrastructure and governance arrangements operational
• 1 April 2029: mandatory e-invoicing for VAT invoices takes effect

Other Key Points From the Roadmap

• EDI: businesses can keep using existing EDI arrangements, but must also be able to exchange e-invoices through the new framework.
• Penalties: the government intends to use the existing VAT invoicing penalties framework as a basis, as far as possible.
• VAT rules unchanged: the rules on when a VAT invoice must be issued, and what it must contain, stay the same. Only the format changes.
• Voluntary adoption: businesses that are not VAT-registered will also be able to use e-invoicing.

B2G E-Invoicing in the UK: Public Sector and the NHS

Since 2019 (2020 for sub-central authorities), public contracting authorities have been required to accept and process e-invoices that comply with the European standard EN 16931. This requirement is now set out in section 67 of the Procurement Act 2023, with equivalent rules in Scotland. Suppliers are not generally required to send e-invoices to the public sector, with one notable exception.

As part of the UK government's e-procurement strategy introduced in 2014, the National Health Service (NHS) began moving its supply chain to digital procurement and invoicing. In 2019, the NHS moved its supply chain onto the Peppol network, and since June 2022 e-invoicing has been mandatory for suppliers trading with NHS entities, including hospitals and other healthcare organisations across the UK. Suppliers working with NHS bodies must submit invoices through the Peppol network using the Peppol BIS Billing 3.0 format, and may also need to exchange other procurement documents, such as purchase orders and despatch advice, through the same infrastructure.

This currently applies to NHS suppliers rather than the wider economy, but it shows how structured e-invoicing already works in parts of the UK public sector. From 1 April 2029, VAT-registered public bodies also fall under the general mandate and must be able to issue and receive VAT invoices as e-invoices.

Peppol and the UK Peppol Authority

Peppol is an international framework that enables the secure exchange of structured electronic business documents, including invoices, between organisations using different software. Businesses connect to the network through a certified Peppol Access Point, usually provided by their software or e-invoicing provider, and can then exchange invoices with any other participant without bespoke connections.

The UK Peppol Authority function currently sits within NHS Supply Chain. Under the roadmap, HMRC will become the UK Peppol Authority, overseeing the framework in the UK and any UK-specific requirements, with the timing of the transition still to be confirmed. The Peppol Authority will not receive copies of VAT invoices for business transactions.

Before 1 April 2029, software providers are expected to complete any required accreditation with the UK Peppol Authority.

How Can Marosa by Wolters Kluwer Help?

As a Peppol service provider, Marosa by Wolters Kluwer enables businesses to send and receive structured e-invoices through the Peppol network, integrated with their existing ERP or accounting systems. Companies already invoicing NHS bodies, or trading in countries with e-invoicing mandates, can use a single solution as the UK requirements come into force. Explore our e-invoicing solutions here.

Discover the status of e-invoicing implementation in Europe

How to Prepare for 2029

The government says there is no need to start implementing e-invoicing before the detailed requirements are published. Businesses can still start planning now:

• Review your current invoicing processes and the systems you use to issue and receive invoices
• Make sure your finance, tax, procurement and IT teams are aware of the 2029 requirement
• Check whether your ERP or accounting software provider plans to support the UK requirements
• If you use EDI, map which trading relationships will also need to move to Peppol

Talk to our e-invoicing team about getting ready for the UK mandate.