United Kingdom

The UK’s journey towards e-invoicing began with a series of legislative measures and directives that laid the groundwork for its adoption in both the public and private sectors. The process commenced with the Small Business, Enterprise and Employment Act 2015, which empowered the government to regulate e-invoicing in public procurement. However, implementation specifics vary across the UK, with England, Wales, Scotland, and Northern Ireland each managing their own regulations.

At the central level, the Public Procurement (E-invoices etc.) Regulations 2019 mandated that all public bodies must be capable of receiving and processing e-invoices. This regulation ensured compliance with the European standard (EN16931), which continued to apply during the Brexit transition period. Additionally, HMRC’s Making Tax Digital (MTD) initiative, launched in 2019, further advanced digital financial management by requiring businesses to maintain digital VAT records and submit VAT returns electronically.

The UK does not operate a single, central e-invoicing platform, leading to varied approaches by different contracting authorities. Some government departments, such as the NHS and HMRC, utilize the Peppol network for e-invoicing, while others rely on external service providers to process invoices and integrate with their internal systems. In Scotland, PECOS P2P serves as the national e-invoicing solution, whereas Wales uses a range of tools and platforms, including the eProcurement Service (ePS).

Across the UK, public bodies are increasingly adopting e-invoicing to reduce administrative costs and enhance payment efficiency. Local authorities and public sector organizations are being encouraged to implement e-invoicing systems, with many establishing shared service centers to streamline processes and leverage technological advancements.

While regional differences influence implementation, the adoption of e-invoicing in the UK has progressed steadily, driven by strong legislative support and public sector initiatives.