Unlike France, the UK does not currently have a mandatory electronic invoicing reform with a specific implementation calendar for all businesses. The UK has taken a more gradual and sector-specific approach to digital tax and invoicing transformation.
The UK's main digital tax initiative is Making Tax Digital (MTD), which focuses on digital record-keeping and submission of tax returns rather than mandating a specific electronic invoicing framework for all businesses.
Key elements of the UK approach include:
- Making Tax Digital for VAT: Already implemented for VAT-registered businesses
- Making Tax Digital for Income Tax Self-Assessment (ITSA): Scheduled to begin in April 2026 for self-employed businesses and landlords with income over £50,000, and April 2027 for those with income over £30,000
- Electronic invoicing for government suppliers: Mandatory for central government suppliers, using standards such as PEPPOL
In the UK:
- There is no universal obligation for businesses to issue or receive invoices in electronic format
- Businesses can choose whether to use paper or electronic invoicing for most B2B transactions
- Electronic invoices are legally recognized and acceptable to HMRC if they meet certain requirements
- Public sector procurement increasingly uses electronic invoicing through systems like PEPPOL
While not mandating a universal electronic invoicing system like France, the UK government recognizes several benefits of digital transformation:
- Reducing the tax gap and combating VAT fraud
- Improving efficiency in business processes
- Reducing administrative burdens
- Supporting environmental sustainability goals
- Enhancing data accuracy and availability
For UK businesses using electronic invoicing:
- Various formats are accepted including PDF, XML, EDI, and structured data formats
- No mandatory central platform exists (unlike France's planned PDP and PPF)
- Businesses can choose from various commercial solutions
- Electronic invoices must maintain authenticity, integrity, and legibility
To prepare for increasing digitalization of tax processes:
- Ensure compliance with current Making Tax Digital requirements if applicable
- Consider implementing electronic invoicing solutions as part of business improvement
- Evaluate existing accounting systems for compatibility with digital tax requirements
- Stay informed about future developments in digital tax policy
While the UK does not have a mandatory electronic invoicing calendar like France, the general direction is clearly toward greater digitalization of tax and business processes. UK businesses should prepare for this trend by gradually adopting digital solutions that improve efficiency and ensure compliance with current and future requirements.
Electronic invoicing offers significant operational benefits even in the absence of a universal legal obligation. Businesses that proactively adopt these technologies will be better positioned to adapt to future regulatory changes and to benefit from the efficiency gains that digitalization offers.
