The UK confirms its 2029 e-Invoicing mandate: What the new announcement means for businesses

The UK Government has formally announced that e-invoicing will become mandatory for VAT-registered businesses starting in 2029. This marks one of the most significant changes to the country’s invoicing landscape in decades. While many details are still being refined, the direction is clear: structured, digital VAT invoices will become the new standard. The move aligns the UK with global e-invoicing trends seen across Europe (through the ViDA framework), APAC, and beyond.

Tradeshift has been active in its response to the UK Government consultation launched in February 2025. We welcome the approach that from January 2026 a period of detailed collaboration with stakeholders is being set up to help design and develop the UK’s e-invoicing regime. As one of the 30 UK and International respondents the emphasis on global standards, interoperability, and business-friendly outcomes aligns with Tradeshift’s experience and values.

What follows is an overview of the UK’s announcement, what businesses should be doing now, and how Tradeshift is contributing to the guidance and standards behind the upcoming changes.

If you’re already a Tradeshift customer, rest assured that your AP operations will continue to run smoothly. Your Customer Success Manager is ready to guide you through everything you need to know about the UK e-Invoicing compliance mandate. If you aren’t yet our customer, get in touch here.

What’s new: Requirements and timeline for the UK e-Invoicing mandate

The UK has been exploring the benefits of electronic invoicing for several years, but the most concrete step came with the government’s consultation titled “Electronic invoicing: promoting e-invoicing across UK businesses and the public sector”, opened in early 2025. The consultation sought input from software providers, businesses, industry groups, and public bodies on how the UK should structure its adoption of mandatory e-invoicing.

Following this public consultation, the UK Government confirmed:

• Mandatory e-invoicing will apply from 1 April 2029 to VAT invoices issued between businesses (B2B) and to the public sector (B2G).
  
• Emphasis has been placed on adoption during consultations: “the UK will introduce mandatory e-invoicing for all VAT invoices from 2029. A mandate will be required to drive uptake of e-invoicing to a sufficient level for businesses to benefit from the network effects.”
  
• The UK government is focused on a decentralised model in line with international best practices (Belgium and Australia are examples). In this model, buyers and suppliers may continue using their preferred e-invoicing platforms, as long as those platforms can exchange structured invoices using the approved standards.
  
• No real-time reporting to HMRC is currently planned in the mandate’s initial phase. Instead, the focus is on invoice format, data quality, and interoperability. E-invoicing adoption in 2029 is seen as being a first step required for real time reporting.

While the UK has not yet confirmed which standard it will adopt, Tradeshift has highlighted the benefits of a Peppol 4-corner model during consultations, given its global adoption and strong track record. Peppol is also a credible candidate because it is already widely used within the NHS. The government has indicated that it will “consider the development of e-invoicing mandates across different jurisdictions and how [it] recognises the needs of businesses operating internationally.”

The government’s published response highlighted several expected benefits of the mandate, including reduced administrative burden, better data accuracy, improved auditability, and quicker payment cycles. especially important for SMEs. “Figures published by New Zealand’s Ministry of Business, Innovation and Employment suggest that average costs of processing an e-invoice are 38% of the average cost of processing paper invoices and 43% of the cost of processing PDF invoices, reflecting significant savings.”

In practice, this means that by 2029, all VAT-relevant invoices will need to be issued in a structured, machine-readable format such as XML or UBL Businesses relying on manual or semi-digital workflows will need time to transition, making early preparation essential

Tradeshift has been a Certified Peppol Access Point since 2014. Watch our on-demand webinar about 7 crucial things to know about Peppol

What businesses should plan for now

Although the mandate takes effect in 2029, organisations should begin preparing well ahead of time. Large ERP or Finance transformation projects can take several months, or even years, depending on complexity, integrations, and the number of partners involved. The UK’s shift to structured e-invoicing affects both operational processes and technical infrastructure.

Here are the key areas organisations should start considering:

1. Assessing current invoicing systems and data flows

Businesses should review how invoices are currently generated, approved, transmitted, and archived. In many UK organisations, accounts payable and accounts receivable processes still include manual steps or rely on PDF-based exchange. These approaches will not be compliant under the new mandate.

Evaluating invoice formats, data quality, ERP capabilities, and integration points helps identify necessary upgrades or replacements early on.

2. Understanding ecosystem readiness

E-invoicing is not just an internal change. Buyers, suppliers, and service providers must all be able to exchange structured invoices. Organisations should map their trading partners and identify where alignment may be required.

A successful transition depends on:

• whether suppliers can issue structured e-invoices,
  
• whether buyers can receive them,
  
• and whether both sides can connect through compliant platforms.

3. Preparing for interoperability requirements

The move towards a decentralised model means organisations will need systems that can:

• work with authorised access points or networks,
  
• support government-approved standards,
  
• and securely exchange structured invoice data.
  

This is especially relevant for businesses operating internationally, where multiple formats, standards, and mandates may apply.

4. Planning for internal change management

Technology is one part of the equation; people and processes are the other. Businesses should prepare for:

• updated workflows for AP and AR,
  
• staff training,
  
• changes in approval cycles,
  
• and adjustments to audit and tax compliance routines.

5. Taking advantage of automation opportunities

The UK mandate is not purely a compliance exercise. Structured invoices enable higher automation levels, such as straight-through processing, data validation, and reduced reconciliation effort. By digitising this data additional opportunities emerge for business from Agentic AI, Analytics and financing. 

Businesses that start early can turn compliance into a broader transformation initiative that strengthens efficiency and financial visibility.

How Tradeshift is participating in the UK’s e-Invoicing development

Tradeshift has been monitoring, contributing to, and implementing global e-invoicing mandates for over a decade, across markets such as France, Germany, Belgium, Poland, Spain, Romania, Australia, Malaysia, and others. This experience has helped build strong relationships with regulatory and standardisation bodies worldwide.

In the UK specifically, Tradeshift is actively involved directly and through industry groups such as the UK eInvoicing Advocacy Lab, which collaborates with government bodies as they refine the mandate’s design. Participation in these forums provides early visibility into regulatory objectives, expected technical standards, and implementation approaches, while also ensuring that our customers can rely on the platform to remain fully compliant with government regulations.

This involvement matters for several reasons:

• Early insights mean earlier readiness. Tradeshift can begin adapting its platform long before mandates come into effect, avoiding last-minute changes and ensuring customers stay compliant.
  
• Industry collaboration helps shape practical outcomes. Direct interaction with government teams allows contributors to share operational realities from businesses and networks already using e-invoicing at scale.
  
• Global interoperability is easier to support. Because Tradeshift already connects over 1.5 million businesses globally, our platform is designed to work within multi-standard environments – a key benefit in a 4-corner model.

Tradeshift customers benefit from a platform built on compliance. As mandates change, the platform evolves with them, reducing risk and ensuring that your AP operations remain smooth while staying fully aligned with regulatory requirements.

This combination of involvement, experience, and technical depth puts Tradeshift in a strong position to support UK businesses, whether they are existing customers or new to the platform, as they prepare for 2029.

Next steps for you to stay ahead

The UK’s decision to make e-invoicing mandatory is a major step towards strengthening digital infrastructure, supporting payment efficiency, and aligning with international standards. While 2029 may seem far away, early planning will make the transition smoother — especially for organisations with complex supply chains or multiple ERP systems.

Tradeshift is a global e-invoicing and AI-powered AP automation platform available in 26 languages, designed to help companies meet local compliance requirements in 69 countries while unlocking the benefits of automation and intelligent invoice processing. Beyond compliance, Tradeshift’s AI-driven capabilities make it a powerful AP platform for any finance department looking to modernise and improve efficiency.

If you are a Tradeshift customer
You’re already ahead. Tradeshift’s platform has compliance built into its foundation, and our teams actively participate in regulatory working groups to anticipate and incorporate changes long before they become mandatory. As a result, you can expect little to no change to your existing AP processes as the UK mandate approaches. 

Your Customer Success Manager will guide you through any updates, but the heavy lifting is already done: no extra systems, no costly change programmes, no disruption. With Tradeshift, you’re already prepared for what’s coming.

If you’re not yet a Tradeshift customer
Whether you’re preparing for the UK’s upcoming e-invoicing mandate or simply want clarity on what the changes mean for your organisation, now is the ideal time to start the conversation. Tradeshift offers a future-ready, compliant, and scalable platform that helps finance teams modernise with confidence.

Get in touch with Tradeshift to explore how to prepare effectively and build a compliant, scalable, and future-ready invoicing process.