E-invoicing becomes mandatory in the UK for VAT invoices between businesses and to the public sector from April 2029. Invoices will be exchanged as structured data over Peppol, not as PDFs, and HMRC will not receive copies at launch. Below are short answers to the questions we hear most, with what is confirmed and what is still open.
The detailed implementation roadmap is due at Budget 2026 on 28 October 2026. We will update these answers when it is published.
The basics
1. What is an e-invoice?
An invoice "issued, transmitted, and received in a structured format which allows for automatic electronic processing", in the government's words. The buyer's software reads it directly, with no retyping. See E-invoice.
2. Is a PDF an e-invoice?
No, not for the mandate. The consultation said PDF and Word invoices, images, HTML invoices and faxes are not e-invoices. See Does a PDF count?.
3. When does it start?
April 2029. Budget 2025: "From April 2029, businesses will be required to issue all VAT invoices as e-invoices". This site uses April 2029. See the timeline.
4. Is it confirmed, or still a proposal?
The mandate is a confirmed government decision, announced at Budget 2025 on 26 November 2025. The detailed rules and the legislation are still to come.
Who is in scope
5. Who has to comply?
Businesses issuing VAT invoices for business-to-business (B2B) and business-to-government (B2G) transactions. See Who is in scope? and the scope checker.
6. I'm not VAT-registered. Does it apply to me?
Not as an obligation to issue. The consultation response says businesses "not required and choose not to be registered for VAT will not be obliged to adopt this technology." See Non-VAT-registered businesses.
7. Is there an exemption for small VAT-registered businesses?
None has been announced. Budget 2025 refers to "all VAT invoices". See E-invoicing for small businesses.
8. Does it cover sales to consumers?
The government says VAT invoices are typically not issued for business-to-consumer sales. Treatment of simplified invoices and receipts is not yet confirmed. See Receipts and simplified invoices.
9. What about Northern Ireland and the Isle of Man?
The mandate covers UK VAT invoices, and the Isle of Man shares the UK VAT area. How the rules will apply in detail to each has not been confirmed. See Northern Ireland and Isle of Man.
How it works
10. How are e-invoices sent?
Over Peppol. On 23 June 2026 the government announced that Peppol "will be the core interoperability network for e-invoicing in the UK." Your software sends the invoice through a certified Access Point to your customer's Access Point: the four-corner model.
11. Will there be a government portal?
No. The UK has chosen a decentralised model with no central hub. See Clearance vs decentralised.
12. Will HMRC see my invoices?
Not at launch. The government "will not introduce [real-time reporting] alongside the e-invoicing mandate in 2029", though it may consider it later. See Real-time reporting.
13. Which format will be required?
Not yet confirmed. The government said it would weigh an existing standard against a UK-specific one. Peppol's invoice format, Peppol BIS Billing 3.0, is based on the European standard EN 16931, and UK public bodies must already accept EN 16931 invoices under the Procurement Act 2023.
14. Can I keep using EDI?
Not yet known. The government said it will continue to engage on "the role of legacy systems which cannot interoperate in the future system." See E-invoicing vs EDI.
Costs, software and risk
15. How much will it cost?
No official figure. The government expects products "at a range of price points, including some low-cost products", as with MTD. See E-invoicing cost.
16. Does my accounting software already do this?
Some UK products already offer e-invoicing or Peppol. Ask your provider whether it can send and receive Peppol invoices. See Check your software's Peppol support.
17. What are the penalties?
None announced. Be wary of articles quoting fines. See E-invoicing penalties.
18. How long must I keep e-invoices?
The mandate's archiving rules are not yet published. Under current VAT rules, you must keep VAT records for at least six years (longer in some cases, such as the One Stop Shop schemes), and HMRC's electronic invoicing notice (VAT Notice 700/63) explains how electronic invoices must be stored. See E-invoice archiving.
19. What about my EU customers?
EU countries' own mandates generally apply to businesses established there, not to UK suppliers, but customers may ask for Peppol invoices. See Selling to EU customers.
Getting ready
20. What should I do now?
You do not need to buy anything before the roadmap. Useful steps today:
- Count invoices sent and received each month, and how they are produced.
- Ask your software provider about Peppol send and receive, and their 2029 plans.
- Tidy customer and supplier VAT numbers and addresses.
- Find out which customers and suppliers are already on Peppol.
- If you advise clients, read the guide for accountants.
- Work through the readiness checklist.
Still unsure about a term? Try the A to Z glossary, or check common e-invoicing myths.
Frequently asked questions
When does e-invoicing become mandatory in the UK?
From April 2029. Budget 2025 said businesses will be required to issue all VAT invoices as e-invoices from that date.
Who has to e-invoice?
Businesses issuing VAT invoices to other businesses (B2B) and to the public sector (B2G). Businesses that are not VAT-registered, and not required to be, will not be obliged to adopt e-invoicing.
Which network will the UK use?
Peppol. On 23 June 2026 the government announced that Peppol will be the core interoperability network for e-invoicing in the UK.
Will HMRC receive my invoices?
Not at launch. The government has said real-time reporting will not be introduced alongside the 2029 mandate.
Spotted a mistake? Report an error. einvoices.uk is an independent publication and is not affiliated with HMRC. Details of the mandate may change; check the sources and official GOV.UK guidance before acting.