E-invoicing compliance and regulatory updates - United Kingdom

Electronic Invoicing United Kingdom

In May 2019, the UK Government adopted the EU Directive regarding e-invoicing for public procurement via the Public Procurement Regulations 2019. All public bodies involved in public tender procedures must receive and process supplier invoices electronically according to the standards of the Directive.

The Public Procurement Regulations was the consequence of gradual process that started years before in 2015, when the Small Business, Enterprise and Employment Act 2015 was passed. This legislation specifically granted Ministers the right to regulate electronic invoicing across the public sector in England but has not made it legally mandatory in the UK. Wales, Scotland and Northern Ireland have their own regulations, and this legislation does not apply to them.

The infrastructure used in the UK for Business-to-Government (B2G) is the Peppol Network.

Efforts are being made in the UK towards the adoption of an e invoice mandate, however it is thought that the UK is being cautious about the cost associated with e-invoicing technology and software. Considerations are being made to ensure companies are not being unnecessarily encumbered with impractical costs or burdens that they may not be able afford.

Nevertheless, e-invoices are allowed and must be accepted when I&A is guaranteed. HM Revenue and Customs (HMRC) provides different methods examples to guarantee I&A, such as Advanced Electronic Signature, Qualified Electronic Signature, EDI, and business controls.

Want to learn more about e-Invoicing compliance?

Download our Global e-invoicing and Tax Compliance fact sheet here for more information.

Download now

Electronic Invoicing United Kingdom

In May 2019, the UK Government adopted the EU Directive regarding e-invoicing for public procurement via the Public Procurement Regulations 2019. All public bodies involved in public tender procedures must receive and process supplier invoices electronically according to the standards of the Directive.

The Public Procurement Regulations was the consequence of gradual process that started years before in 2015, when the Small Business, Enterprise and Employment Act 2015 was passed. This legislation specifically granted Ministers the right to regulate electronic invoicing across the public sector in England but has not made it legally mandatory in the UK. Wales, Scotland and Northern Ireland have their own regulations, and this legislation does not apply to them.

The infrastructure used in the UK for Business-to-Government (B2G) is the Peppol Network.

Efforts are being made in the UK towards the adoption of an e invoice mandate, however it is thought that the UK is being cautious about the cost associated with e-invoicing technology and software. Considerations are being made to ensure companies are not being unnecessarily encumbered with impractical costs or burdens that they may not be able afford.

Nevertheless, e-invoices are allowed and must be accepted when I&A is guaranteed. HM Revenue and Customs (HMRC) provides different methods examples to guarantee I&A, such as Advanced Electronic Signature, Qualified Electronic Signature, EDI, and business controls.

Want to learn more about e-Invoicing compliance?

Download our Global e-invoicing and Tax Compliance fact sheet here for more information.

Download now

Archiving

Organisations must keep VAT records for at least 6 years, 10 years if you used the VAT MOSS service. VAT records can be kept on paper, electronically, or as part of a software program, such as book-keeping software. Records must be accurate, complete and readable.

Want to know more about Basware’s archiving services?

Download our Basware Vault fact sheet here to learn more about our flexible and scalable solution.

Download now

Basware Services

Basware supports all methods to receive invoices: paper, portal, PDF, and true e-invoicing.

To support electronic invoicing from suppliers that are not suitable for e-Invoicing connections, Basware established SMART PDF services powered by AI and machine learning. To remove the burden of paper invoices we operate local scan centres to scan and capture data from paper invoices through optical character recognition (OCR) technology.

Want to find out how we can help in your specific case?

Speak to a member of our team to learn more.

Contact us

Interoperability

At Basware, we are passionate about delivering the benefits of open interoperability to our customers. So, we have partnered with more than 220 e-invoicing networks around the world to ensure the Basware Network remains the largest open commerce network of buyers and suppliers.

In the UK, we have developed connections to:

  • B2BE
  • Elemica
  • Esker
  • GHX
  • Inovis (Dell)
  • Softshare Network
  • Taulia

In addition to these operators, Basware is connected to the Peppol and Norwegian EHF networks.

Our advice

In the UK, the majority of invoices are sent by email as PDF attachments. Basware’s unique offering to capture emailed PDF's (SMARTPDF) ensures a faster time to value, particularly with long tail suppliers.

Basware provide enablement campaigns to achieve high levels of true electronic invoices. This will drive cost reduction, increase automation, and improve buyer-supplier collaboration.

Want to understand how we can help in your case?

Get in touch with our experts.

Contact us

Back to Compliance Map

Electronic Invoicing United Kingdom

In May 2019, the UK Government adopted the EU Directive regarding e-invoicing for public procurement via the Public Procurement Regulations 2019. All public bodies involved in public tender procedures must receive and process supplier invoices electronically according to the standards of the Directive.

The Public Procurement Regulations was the consequence of gradual process that started years before in 2015, when the Small Business, Enterprise and Employment Act 2015 was passed. This legislation specifically granted Ministers the right to regulate electronic invoicing across the public sector in England but has not made it legally mandatory in the UK. Wales, Scotland and Northern Ireland have their own regulations, and this legislation does not apply to them.

The infrastructure used in the UK for Business-to-Government (B2G) is the Peppol Network.

Efforts are being made in the UK towards the adoption of an e invoice mandate, however it is thought that the UK is being cautious about the cost associated with e-invoicing technology and software. Considerations are being made to ensure companies are not being unnecessarily encumbered with impractical costs or burdens that they may not be able afford.

Nevertheless, e-invoices are allowed and must be accepted when I&A is guaranteed. HM Revenue and Customs (HMRC) provides different methods examples to guarantee I&A, such as Advanced Electronic Signature, Qualified Electronic Signature, EDI, and business controls.

Want to learn more about e-Invoicing compliance?

Download our Global e-invoicing and Tax Compliance fact sheet here for more information.

Download now