UK sets direction for B2B e-invoicing from April 2029

HM Revenue & Customs (HMRC) published its roadmap for mandatory e-invoicing in the UK. Starting April 1, 2029, VAT-registered businesses must issue and receive VAT invoices in a structured data format. PDFs, Word documents, image files, and emailed invoices will not qualify. The UK will use a Peppol-based model, where trading partners exchange invoices through certified Peppol Access Points. Invoices will not route through HMRC for clearance. The mandate covers domestic B2B and public sector transactions, and extends to foreign businesses registered for UK VAT. Most B2C sales and sales to non-VAT-registered customers fall outside the mandate. HMRC will publish detailed technical requirements between October 2027 and April 2028.

The bottom line: If you are registered for UK VAT, confirm your accounting or e-invoicing software will support Peppol before April 2029. Most businesses will connect through their software provider instead of joining Peppol directly. HMRC also opened a consultation on digital reporting, and no decisions have been made on future reporting requirements.