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Glossary
E-invoicing glossary
The jargon, explained in a sentence or two.
- Access point
- A company connected to the Peppol network that sends and receives e-invoices for businesses. Your invoicing software either is one or works with one.
- B2B, B2G and B2C
- Business to business, business to government (the public sector) and business to consumer (homeowners and the public). The UK plans cover B2B and B2G VAT invoices.
- Buyer reference
- A reference or purchase order number your customer gives you to put on the invoice. Public bodies usually need one before they can pay.
- Credit note
- A document that reduces or cancels an invoice you have already sent. It should be linked to the original invoice rather than editing it.
- Decentralised model
- A set-up where invoices travel between businesses' own providers rather than through a central government system. The UK government has focused on this model.
- E-invoice
- An invoice sent as structured data directly from the supplier's software into the buyer's software. PDFs, Word documents and photos are not e-invoices.
- EN 16931
- The European standard for what an e-invoice contains. UK public bodies must already accept e-invoices that meet it.
- Mandate
- A legal requirement. The e-invoicing mandate is the planned rule that covered invoices must be e-invoices from April 2029.
- Peppol
- The network UK e-invoices will travel over, confirmed by the government in June 2026. Used in many countries and by NHS Supply Chain.
- Peppol BIS Billing 3.0
- The invoice format used on the Peppol network today, built on EN 16931. The UK hasn't yet said whether it will use it as it is or a UK version.
- Peppol ID
- A business's address on the Peppol network, so invoices reach the right place. It's often based on a VAT or company number.
- Real-time reporting
- Sending invoice details to the tax authority as invoices are issued. The UK won't introduce it alongside the 2029 mandate.
- Reverse charge
- A VAT rule where the customer, not the supplier, accounts for the VAT. It applies to most construction work between VAT-registered businesses under CIS.
- Self-billing
- When the customer writes the invoice on the supplier's behalf, common with some main contractors.
- UBL and XML
- File formats used for e-invoices. XML is a way of labelling data; UBL is a standard set of labels for business documents such as invoices.
- VAT invoice
- An invoice from a VAT-registered business that shows the VAT charged. The 2029 plans apply to VAT invoices.
- VAT registration threshold
- You must register for VAT if your taxable turnover goes over £90,000 in any rolling 12 months.
Sources
From the makers of this guide
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