Electronic Invoicing in the United Kingdom
Is e-invoicing mandatory in the United Kingdom ?
E-invoicing is not mandatory for all transactions in the UK. However, in May 2019, the UK government adopted the EU Directive on e-invoicing for public procurement via the Public Procurement Regulations 2019 and retained this requirement after Brexit.
Who is affected?
For Business-to-Business (B2B) transactions, there is currently no mandatory e-invoicing requirement. However, consultations are ongoing to encourage broader voluntary adoption. All public bodies involved in public tender procedures must be able to receive and process electronic invoices in line with the EU Directive standards.
Compliance requirements
Public entities must accept electronic invoices that comply with the standards set by the EU Directive.
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Key Deadlines
The UK government has announced plans to explore a potential e-invoicing mandate. However, no official mandate or timeline has been published to date.
Standards & Platforms
Platform
There is no government platform for invoice submission or clearance in the UK. For Business-to-Government (B2G) transactions, the Peppol Network is commonly used.
What formats are required in the United Kingdom?
There are no specific mandated formats. However, when using the Peppol Network, invoices must follow the network requirements, such as Peppol BIS-format.
Archiving in the United Kingdom
What are the archiving requirements in the United Kingdom?
Organizations must retain VAT records for at least six years, or ten years if using the VAT MOSS service. These records can be stored on paper, electronically, or within bookkeeping software. Records must be accurate, complete, and readable.
Legal invoice
- For suppliers: The legal invoice is the version sent to the recipient in the format the recipient receives. If sent via email, the email is considered part of the legal invoice.
- For buyers: The legal invoice is the version received from the supplier in the original format sent. If sent via email, the email is also considered part of the legal invoice.
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Key Actions
- Ensure compliance – For B2G transactions, ensure that e-invoices meet integrity and authenticity (I&A) standards.
- Archive records – Retain VAT records for at least six years (ten years for VAT MOSS), ensuring accuracy and readability.
UK e-invoicing and archiving requirements at a glance:
| Requirement | Status | Timeline |
| B2G | Mandatory | In effect |
| B2B | Not Mandatory | Under review |
Supplier requirement: UK suppliers must send invoices in a secure format—such as Peppol or EDI—that ensures integrity and authenticity, depending on the receiver’s accepted format.
Buyer requirement: UK buyers are encouraged to have systems in place to receive invoices in an electronic format.
Archiving requirement: VAT records must be stored for at least six years (ten years for VAT MOSS) in a format that ensures completeness, accuracy, and readability.
