The UK Treasury confirmed mandatory e-invoicing for all VAT invoices starting April 1, 2029, applying to business-to-business and business-to-government transactions. The government selected a decentralized 4-corner model, likely using the Peppol network, allowing businesses to exchange structured invoices through approved networks without a central government platform. Real-time reporting will not be required in 2029 but may be added later. Stakeholder collaboration begins January 2026, with a detailed implementation roadmap due at Budget 2026 in November. Paper invoices and PDF files will no longer qualify as valid VAT invoices.

The bottom line: UK businesses must assess their ERP and billing systems for Peppol and EN16931 compliance. The government estimates e-invoicing cuts costs by 60% to 80% and reduces late payments by 20%, saving small businesses approximately £11,300 annually.