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E-Invoicing in the United Kingdom
Last update: 2026, March 6
Summary
B2G
Accepted, sometimes mandatory
All public entities in the UK accept e-invoices compliant with the EN 16931, but it is not mandatory for suppliers to use e-invoicing.
The only exception is for all NHS-related public entities, where the use of e-invoicing is mandatory.
B2B
Will be mandatory soon
B2B e-invoicing is currently not mandatory in the UK, but an e-invoicing mandate relying on the Peppol network is planned for 2029.
What the Law Says
B2G E-Invoicing
Since 2020, public administrations are required to accept e-invoices from their suppliers, as outlined in the Public Procurement (Electronic Invoices etc.) Regulations 2019. This mandate aligns with the EU Directive 2014/55/EU, which requires e-invoices to comply with the EN 16931 standard, although the UK law does not prescribe a specific invoice format.
Additionally, the mandate does not extend to the suppliers of the public administrations, who remain free to send either electronic or non-electronic invoices.
Furthermore, B2G e-invoicing is mandatory for public entities affiliated with the National Health Services (NHS), such as hospitals. Suppliers of those public entities must submit invoices electronically via the Peppol network using the Peppol BIS 3.0 format.
All invoices must be archived for 6 years.
B2B E-Invoicing
There is currently no B2B e-invoicing mandate in the United Kingdom, meaning that businesses can transmit their B2B invoices in the following ways:
- Paper-based invoices
- PDF invoices with e-signature or complete audit trail
- EDI, for example via the Peppol network
However, an e-invoicing obligation is being discussed and is expected to be implemented in 2029. Additional details should be released by the end of Q1 2026. The official consultation results [↗︎] indicate that the UK is leaning toward a decentralised e-invoicing model, likely based on the Peppol network.
All invoices must be archived for 6 years.
Timeline
B2G mandatory acceptance at central level
UK central contracting authorities must be able to receive e-invoices from their suppliers.
B2G mandatory acceptance
All public administrations in the UK must be able to receive e-invoices from their suppliers.
B2G mandatory for the NHS
B2G e-invoicing is mandatory for all public entities related to the National Health Services (NHS).
Possible start of mandatory B2B e-invoicing
An e-invoicing mandate relying on the Peppol network is expected to be implemented in 2029
Latest E-Invoicing News in the United Kingdom
UK government announces a B2B e-invoicing obligation for 2029
As the EU implements ViDA, the UK is preparing to introduce its own e-invoicing mandate applying to all VAT invoices from 2029.
UK on the road to an e-invoicing mandate?
The Chancellor announced the start of a consultation on e-invoicing with the goal to improve the UK's tax system.
Technical Details
B2G General Situation
E-invoicing is possible for B2G transactions in the UK, and all public administrations accept invoices compliant with the EN 16931. However, the government has not imposed a mandatory format, giving suppliers the flexibility to choose the syntax that best fits their needs when invoicing public entities.
National Health Services - E-Invoicing via the Peppol Network (Mandatory)
In 2019, the National Health Service (NHS) transitioned its entire supply chain to the Peppol network. This change aligns with the NHS e-procurement strategy established by the UK government in 2014.
E-invoicing then became mandatory in June 2022 and applies to all suppliers of any public entity associated with the NHS, including hospitals across the country.
As a result, these public administrations are now using Peppol for issuing orders to suppliers, who in turn are required to submit various documents throughout the process, such as logistics documents (despatch advices, advanced shipping notes) and invoices.
Specifically, all NHS suppliers must submit their invoices through the Peppol network using the Peppol BIS 3.0 format.
B2G in Scotland - PECOS P2P Platform
The B2G e-invoicing regulations in Scotland are consistent with those in the rest of the UK: public entities can accept EN16931-compliant invoices, but no specific invoice format has been mandated.
To facilitate business transactions, the Scottish government has introduced a central platform called PECOS P2P, which manages the entire procurement process for public entities that choose to use it. However, its use is not compulsory, and entities are free to use other solutions.
Although the PECOS P2P platform can process electronic invoices, this doesn’t appear to be actively promoted. Instead, suppliers are generally advised to submit PDF invoices, which public entities then manually input into the platform, effectively undermining the advantages of e-invoicing.
It seems however possible to establish point-to-point EDI connections between suppliers and PECOS to exchange e-invoices, but since no standard format is specified, each supplier likely needs to agree on a format with both PECOS and the public entity, a somewhat outdated approach to e-invoicing.
Possible upcoming B2B e-invoicing mandate
With the European Union approving the ViDA Directive in 2025, which includes mandatory cross-border e-invoicing from 2030, the United Kingdom is aiming establish a domestic requirement on a similar timeline.
The mandate will follow a decentralised model and is likely to rely on the Peppol network, using a traditional four-corner architecture.
In a second phase, real-time invoice data reporting to HM Revenue & Customs, the country’s tax authority, will also likely be introduced.
The Invoicing Hub Word
United Kingdom
E-invoicing in the UK initially made significant progress with the adoption of the Peppol network by the NHS and the mandatory acceptance of EN 16931-compliant invoices by public administrations.
However, since the advent of Brexit, progress in expanding e-invoicing initiatives has stalled. Indeed, the UK’s departure from the EU has exempted it from the obligation to apply the Directive 2014/55/EU and implement a B2G e-invoicing mandate.
More recently, momentum has resumed as the UK government confirmed in 2025, following a national consultation, its intention to introduce a national e-invoicing mandate. The requirement is expected to apply to all VAT invoices from 2029, and the likely adoption of a decentralised model based on the Peppol network would bring the UK closer to the approach taken by many EU countries.
This alignment with EU developments will facilitate cross-border invoicing and reporting for UK businesses and simplify exchanges with their European trading partners.
Additional Resources
Tax authority in charge of e-invoicing in the UK
Public entity mandating the use of e-invoicing for its suppliers in the UK
B2G platform available to Scottish public entities
Guidelines for the use of the PECOS B2G platform in Scotland
Entire set of official Peppol BIS 3.0 specifications
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Powered by the world’s most sophisticated invoice-centric AI – trained on over 2 billion invoices – Basware's Intelligent Automation drives ROI by transforming finance operations. We serve 6,500+ customers globally and are trusted by industry leaders including DHL, Heineken and Sony. Fueled by 40 years of specialized expertise with $10+ trillion in total spend handled, we are pioneering the next era of finance.
With Basware, now it all just happens.
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Basware is how the best finance teams gain complete control of every invoice, every time. Our Intelligent Invoice Lifecycle Management Platform ensures efficiency, compliance and control for all invoice transactions.
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