# Hospitality e-invoicing: hotels, events and the 2029 mandate > Most hospitality sales are B2C and stay outside the 2029 e-invoicing mandate. Corporate stays, events and trade accounts are the parts likely to be caught. - Canonical URL: https://einvoices.uk/news/e-invoicing-hospitality - Published: 20 October 2026 (2026-10-20) - Last updated: 20 October 2026 (2026-10-20) (not updated since publication) - Author: Floris Lindenaar, Editor, e-invoicing expert (https://einvoices.uk/authors/floris-lindenaar) - Publisher: einvoices.uk (https://einvoices.uk) - Type: Guide - Topics: Sectors, 2029 mandate, VAT, Small business - Language: en-GB (UK English); covers the United Kingdom ## Sources - [Hotels and holiday accommodation (VAT Notice 709/3)](https://www.gov.uk/guidance/hotels-holiday-accommodation-and-vat-notice-7093) - [VAT guide (VAT Notice 700)](https://www.gov.uk/guidance/vat-guide-notice-700) - [VAT: reduced rate for hospitality, holiday accommodation and attractions](https://www.gov.uk/guidance/vat-reduced-rate-for-hospitality-holiday-accommodation-and-attractions) - [Tour Operators' Margin Scheme (VAT Notice 709/5)](https://www.gov.uk/guidance/tour-operators-margin-scheme-for-vat-notice-7095) - [Promoting electronic invoicing across UK businesses and the public sector: consultation response](https://www.gov.uk/government/consultations/promoting-electronic-invoicing-across-uk-businesses-and-the-public-sector/outcome/promoting-electronic-invoicing-across-uk-businesses-and-the-public-sector-consultation-response) --- For most hospitality businesses, the 2029 e-invoicing mandate touches only part of the business. Guests paying for a meal, a drink or a room are consumers, and VAT invoices are not normally issued to consumers. What is likely to be caught are **invoices to businesses**: corporate stays, conferences and events, trade and account customers, and anything sold to public bodies. Those VAT invoices must be e-invoices from **April 2029**. The other half of the picture is your **purchase ledger**: your VAT-registered suppliers will start sending you e-invoices. ## Which hospitality invoices are in scope The mandate applies to VAT invoices between VAT-registered businesses (B2B) and to the public sector (B2G). HMRC's [consultation response](https://www.gov.uk/government/consultations/promoting-electronic-invoicing-across-uk-businesses-and-the-public-sector/outcome/promoting-electronic-invoicing-across-uk-businesses-and-the-public-sector-consultation-response) noted that VAT invoices are typically not issued for business-to-customer transactions. | Sale | Typical document | Likely position | |---|---|---| | Restaurant or bar bill paid by a member of the public | Till receipt | Out of scope (B2C) | | Restaurant bill of £250 or less for a business guest who asks for a VAT receipt | Simplified VAT invoice | **Not yet confirmed** | | Corporate hotel stay billed to the company's account | Full VAT invoice | In scope | | Conference, wedding or event package for a business client | Full VAT invoice | In scope | | Room hire for a council or NHS training day | Full VAT invoice (if taxable) | In scope (B2G) | | Package sold under the Tour Operators' Margin Scheme | Non-VAT invoice with TOMS reference | **Not yet confirmed** | Under [VAT Notice 700](https://www.gov.uk/guidance/vat-guide-notice-700) (16.6), a simplified invoice is allowed for supplies of **£250 or less** if the customer agrees. Above that, or on request, a full VAT invoice is needed. Many business guests receive simplified invoices at the till. How those will be treated is among the most important open questions for the sector. ## VAT points that shape hospitality e-invoices A structured e-invoice exposes the VAT logic line by line. These are the hospitality rules most likely to trip validation. ### The standard rate applies again The temporary reduced rates for hospitality, accommodation and attractions **ended on 31 March 2022**. From 1 April 2022 the normal rules apply, and catering, accommodation and admissions that were temporarily reduced are standard-rated. Check that old rate codes have been removed from your property-management or EPOS system. ### Long stays: the 28-day rule Under [VAT Notice 709/3](https://www.gov.uk/guidance/hotels-holiday-accommodation-and-vat-notice-7093), if an individual stays for more than 28 days, VAT from day 29 is charged only on the part of the charge that is not for accommodation. Your full charge still goes into the VAT return. The rule does not apply to company block bookings used by a series of short-term occupants, such as airline crew. On an e-invoice, the long-stay element needs splitting into lines with the right VAT treatment. A single line at 20% would be wrong. ### Conference rooms and catering Hiring out a room that is not linked to catering, such as a meeting room, is **exempt** unless you have opted to tax (Notice 709/3, and see [option to tax](https://einvoices.uk/news/e-invoicing-property-landlords)). Tea, coffee and biscuits can go with the room as one exempt supply. A meal or buffet is a separate standard-rated supply. Mixed packages therefore often need several lines with different VAT categories on one invoice. ### Deposits, cancellations and booking fees Most deposits are **advance payments**. VAT is due when you receive them, and a deposit kept after a no-show still carries VAT. Booking fees are treated the same way. If you invoice the deposit, the final e-invoice must show the deposit as already paid rather than charging VAT on it twice. In EN 16931 terms, that is the "paid amount" (BT-113). ### Service charges and tips Notice 700 (8.14) is clear: - A **compulsory** service charge is part of the price and follows the VAT treatment of the supply. - **Optional** service charges and tips freely given are **outside the scope** of VAT. On an e-invoice to a business, an optional service charge line should not be coded as standard-rated. ### Tour operators and TOMS [VAT Notice 709/5](https://www.gov.uk/guidance/tour-operators-margin-scheme-for-vat-notice-7095) says "VAT invoices cannot be issued for supplies accounted for under TOMS", because the VAT is only known after the year-end calculation. When a TOMS supply is sold to a business, the invoice must say that TOMS applies. Hotels selling packages, and venues that bundle travel and accommodation, should check whether TOMS applies to them. **How TOMS invoices fit the mandate has not been confirmed.** ## The bigger change may be on the buying side Hospitality businesses buy from food and drink wholesalers, breweries, laundry services, utilities and maintenance contractors, nearly all of them VAT-registered. From April 2029, those suppliers' VAT invoices to you will need to be e-invoices. That means: - You will need a way to **receive** them, usually through your accounting software and its Access Point. - Invoices from wholesalers often mix zero-rated food with standard-rated goods. Structured data makes these easier to post correctly than scanned PDFs. - Groups with many sites should decide whether invoices go to one central Peppol address or several. See [Peppol participant IDs](https://einvoices.uk/news/peppol-participant-id-uk). ## Sector voice Hospitality was barely represented in the consultation. Fewer than 1% of respondents who gave a sector came from hospitality and events, according to the response. Sector bodies and businesses that want rules on folios, simplified invoices and TOMS should engage before the details are set. ## What to do now 1. **Count your B2B invoices:** corporate accounts, events, trade customers and public bodies. That is your likely sending scope. 2. **Clean up VAT codes** in your PMS and EPOS: the standard rate, exempt room hire, out-of-scope tips. 3. **Ask your PMS, EPOS and accounting providers** about Peppol support for both sending and receiving. See [check your software](https://einvoices.uk/news/check-accounting-software-peppol-support). 4. **Watch the roadmap** at Budget 2026 on 28 October 2026 for the treatment of simplified invoices and receipts. This is general information, not tax advice. See also the [small business guide](https://einvoices.uk/news/e-invoicing-small-business-guide) and the [mandate guide](https://einvoices.uk/mandate). ## Frequently asked questions ### Do restaurants and pubs need e-invoicing? For sales to the public, no. The mandate covers VAT invoices, which are not normally issued to consumers. Invoices to business customers, such as corporate accounts or event bookings, are likely to be in scope from April 2029. How small simplified invoices will be treated is not yet confirmed. ### Do hotels have to send e-invoices to companies? If a hotel issues a full VAT invoice to a VAT-registered company, that invoice is likely to need to be an e-invoice from April 2029. Detailed rules for folios and bills paid at checkout have not been published. ### Is a tip or service charge on the e-invoice subject to VAT? A compulsory service charge is part of the price and follows the VAT treatment of the supply. Optional service charges and tips freely given are outside the scope of VAT. ### Can tour operators issue VAT invoices for TOMS supplies? No. HMRC says VAT invoices cannot be issued for supplies accounted for under the Tour Operators' Margin Scheme. How TOMS invoices will fit the mandate has not been confirmed. --- How to cite: "Hospitality e-invoicing: hotels, events and the 2029 mandate", einvoices.uk, 20 October 2026, https://einvoices.uk/news/e-invoicing-hospitality einvoices.uk is an independent publication and is not affiliated with HMRC or the UK Government. Nothing here is tax advice; check the sources and official GOV.UK guidance before acting.