E-invoicing in the UK

Suppliers to the National Health Service (NHS) in England are required to submit structured e-invoices in the Peppol BIS 3.0 format through a certified Peppol Access Point. E-invoices must be archived for at least six years.

All other public sector bodies must be able to receive e-invoices that meet the European standard EN 16931. However, suppliers are not required to send them unless stipulated by contract.

Business‑to‑business (B2B) e-invoicing is not currently mandatory in the U.K. However, businesses can exchange e-invoices voluntarily using formats like Peppol BIS, UBL, or PDF, depending on agreements between trading partners. E-invoices should include:

• Buyer details and identification

• Seller details and identification

• Correct VAT rate and amount

• Invoice number and date

• Description of goods/services

The U.K. government held a 12-week public consultation on e-invoicing adoption in the first half of 2025. His Majesty’s Revenue & Customs (HMRC) and the Department for Business and Trade (DBT) gathered feedback on potential e-invoicing models and assessed whether mandates should be introduced in the future.

As the U.K. aligns with global trends and the EU’s VAT in the Digital Age (ViDA) initiative, it’s likely mandates will be implemented in the U.K. in the coming years. A broader e-invoicing framework may be introduced after 2026. The Digital Business Networks Alliance (DBNAlliance) and Peppol adoption may shape future infrastructure.

There are currently no mandatory e-invoicing requirements for business-to-consumer (B2C) transactions in the U.K. For most retail or B2C transactions, simplified VAT invoices or point-of-sale (POS) receipts are acceptable, provided they meet HMRC guidelines.

The U.K. does not require businesses to transmit invoice or transaction data to HMRC in real time or near-real time. As part of Making Tax Digital (MTD) for VAT, businesses must maintain digital records and submit VAT returns quarterly through MTD-compatible software.

There are no current penalties for not adopting e-invoicing in the U.K. However, failure to issue compliant e-invoices when required to do so could result in HMRC requests or failed audits, rejected invoices, delayed payments, and issues surrounding breach of contract.