E-invoicing in the UK

What applies from 1 April 2029

The UK government decided in Budget 2025 and confirmed in the Budget of 28 October 2026: from 1 April 2029 everyone registered for VAT in the UK must be able to issue and receive VAT invoices as e-invoices, unless a specific exception applies. That includes public bodies. This does not mean a PDF by email but a structured data set that the sender's and recipient's software process directly.

Affected are the invoices UK VAT law already requires: you must issue a VAT invoice when, as a registered business, you make a taxable supply to another registered business in the UK. Invoices to consumers are not VAT invoices and fall outside the mandate, as do invoices from unregistered businesses.

Legally the mandate is not yet settled in detail. The Finance Bill 2026-27 gives HMRC the power to set the technical requirements by regulations; it takes effect on Royal Assent. Exactly what is required will be in the regulations due by spring 2028.

What applies today: PDF allowed, Making Tax Digital compulsory

Until 2029 today's rules stay. Electronic invoices are allowed if the recipient agrees, and HMRC counts both structured formats such as XML and a simple PDF as electronic invoices. No particular technology is prescribed.

UK VAT is digital already, though. New registrations are signed up for Making Tax Digital automatically: you keep VAT records in compatible software, and the return goes to HMRC from that software. In the government's view some accounting or MTD software already includes e-invoicing. How registration works for a business without a UK establishment is in the UK VAT number.

Peppol: the network behind UK e-invoicing

The UK is backing Peppol as the central exchange network. Peppol is an international framework through which businesses using different software exchange invoices without knowing which program the customer uses. You do not connect yourself: access comes through an access point, usually run or bought in by your software provider.

HMRC is to take over the role of UK Peppol authority, currently held by NHS procurement. Important for many businesses: this authority receives no copies of invoices between businesses. Whether invoice data will additionally be reported to HMRC in future is open. The government has launched a consultation and expressly decided nothing yet.

Does this apply to you without a UK establishment?

Yes, as soon as you are registered for VAT in the UK. The roadmap says expressly that businesses not established in the UK are subject to the same invoicing rules as UK ones. Typical cases: you store goods in a UK fulfilment centre, you sell parcels up to £135 to consumers, or you supply services connected with UK land. Which cases trigger registration is in VAT on goods sold into the UK and VAT on services.

If you sell only to consumers, you issue no VAT invoices and are not caught by the issuing mandate. But you must still be able to receive e-invoices if UK suppliers issue VAT invoices to you as a registered business.

Many EU countries are introducing e-invoicing on their own timetables and with their own formats. For your UK invoices only UK law counts; whether your home formats fit the UK standards will only be clear once those are set.

Sources: GOV.UK: Roadmap for e-invoicing implementation (28 Oct 2026); GOV.UK: VAT: electronic invoicing (TIIN); GOV.UK: E-invoicing digital reporting (consultation); GOV.UK: Making Tax Digital for VAT