E-Invoicing Is Coming to the UK in 2029: How to Get Your Business Central Ready
E-invoicing is no longer something that only happens on the Continent. In the Autumn Budget of November 2025, the UK government confirmed that all VAT invoices for business-to-business (B2B) and business-to-government (B2G) transactions must be issued as e-invoices from 2029. After Making Tax Digital for VAT, this is the next big step in the digitalisation of UK tax. For finance directors, the message is clear: UK e-invoicing is coming, and your ERP system must be ready.
Key takeaways for leaders
- From 2029, all B2B and B2G VAT invoices in the UK must be structured e-invoices. PDFs and scanned paper invoices will no longer count.
- The UK is taking a decentralised approach, with invoices exchanged between businesses’ systems and no central government platform.
- Real-time reporting to HMRC is not part of the 2029 requirement, and a detailed roadmap is due at the 2026 Budget.
- UK companies selling to the EU already face e-invoicing in countries such as Belgium, with France, Poland and Germany following.
- Business Central’s E-Documents framework already supports Peppol, so you can start preparing now.
What the Government Has Decided
Following a consultation in 2025, HMRC and HM Treasury published their decisions on 26 November 2025:
- Scope: all VAT invoices for B2B and B2G transactions. Business-to-consumer invoices are not included.
- Timing: the mandate starts in 2029. A detailed implementation roadmap will be published at the 2026 Budget.
- Model: a decentralised model, in which invoices are exchanged directly between businesses’ systems through service providers. The government is still deciding whether to adopt an existing standard, such as Peppol, or a UK-specific one.
- Reporting: real-time reporting of invoice data to HMRC will not start in 2029. It may follow once e-invoicing is well established.
Read the full consultation response on GOV.UK.
Don't Forget Your EU Customers
If you trade with the EU, e-invoicing may affect you sooner. Belgium has required B2B e-invoices via Peppol since 1 January 2026, and France, Poland and Germany are introducing their own mandates over the next few years. EU customers may ask you to send invoices in a structured format long before 2029.
What Business Central Offers: the E-Documents Framework
E-Documents is Business Central’s built-in framework for sending and receiving electronic documents. It supports standard formats such as Peppol BIS 3.0 and can be connected to Peppol access points. Version 27 (2025 release wave 2) added several important improvements:
- Creating e-documents directly from posted sales invoices.
- Exporting reminders and finance charge memos as Peppol files.
- Sending e-documents through a service and by email at the same time.
- A clearance model (preview) for countries where the tax authority must approve invoices.
- Integration with Power Automate and other solutions.
Don't Forget the Inbound Side
Most discussions focus on sending invoices, but receiving them matters just as much. When your suppliers send structured e-invoices, Business Central can import them as e-documents, match them to vendors and purchase orders, and create purchase invoice drafts. Copilot can help match invoice lines to purchase order lines. This turns a compliance requirement into a real accounts payable automation opportunity, with fewer keying errors, faster approvals and better cash-flow visibility.
A Readiness Plan for UK Finance Teams
- Check your exposure: list your UK and EU customers and suppliers, and whether any EU customers already require e-invoices.
- Clean your master data: VAT registration numbers, company numbers, addresses, units of measure and payment terms must be correct, because e-invoices are validated automatically.
- Follow the roadmap: HMRC’s detailed plans are due at the 2026 Budget, so build them into your plans as soon as they are published.
- Set up E-Documents in a sandbox and test with a few key trading partners.
- Update processes: define how rejected invoices and exceptions are handled.
- Start early and gradually, rather than in a rush in 2028.
Frequently Asked Questions
When does e-invoicing become mandatory in the UK?
The government has confirmed that all B2B and B2G VAT invoices must be issued as e-invoices from 2029. A detailed roadmap is due at the 2026 Budget.
Is a PDF invoice sent by email an e-invoice?
No. An e-invoice is a structured electronic file that software can process automatically, for example in the Peppol BIS format. PDFs and scanned paper invoices won’t meet the 2029 requirement.
Will HMRC require real-time invoice reporting?
Not in 2029. The government has said real-time reporting will not be implemented in 2029, but it may follow once e-invoicing is well established.
Does Business Central support Peppol?
Yes. Business Central’s E-Documents framework supports Peppol BIS 3.0 and can be connected to Peppol access points.
UK e-invoicing is a compliance deadline, but it is also a chance to automate invoicing and accounts payable end to end, and the companies that start early will benefit first.
Do you want to check whether your Business Central is ready for e-invoicing in the UK and the EU? Contact us or book a call. See also our integration services.
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