What is an e-invoice?

An e-invoice isn't an invoice you email. It's a data file that one business's software sends straight into another business's accounts software, with nobody retyping anything.

The official definition

The government describes e-invoicing as "the digital exchange of invoice data directly between buyers' and suppliers' financial systems". It lists things that don't count as e-invoices:

• PDF invoices, even when they're emailed
• Word documents
• Photos, scans and other images
• Invoices written into the body of an email or on a web page
• Faxes, and invoices that have to be scanned and read by software (OCR)

A normal invoice and an e-invoice, side by side

Both carry the same information. The difference is who it's made for: a PDF is for a person to read, an e-invoice is for software to read.

You won't ever have to write or read one of these files yourself. Your invoicing software makes it, and your customer's software reads it.

What an e-invoice will need to contain

The UK hasn't published its technical standard yet. The government has said it will either adopt an existing standard or design a UK one. Either way, an e-invoice is expected to carry what a VAT invoice needs today, with each detail in its own field:

• Your business name, address and VAT number
• Your customer's name and address (and their VAT number for business customers)
• A unique invoice number, the invoice date and the date of supply
• A description, quantity and price for each line, with the VAT rate on each line
• VAT totals and the total to pay

Public sector customers often also need a buyer reference or purchase order number before they can pay.

Can I send e-invoices now?

Yes. E-invoices are already allowed for VAT, as long as your customer agrees to receive invoices electronically (HMRC VAT Notice 700/63). Public bodies already have to accept e-invoices that meet the European standard EN 16931 under the Procurement Act 2023.

There's one thing that catches people out. Today, HMRC treats a PDF sent by email as an "electronic invoice" for VAT purposes. Under the 2029 plans, it won't count. The meaning of "e-invoice" is getting narrower.

Why the government is doing this

The government says e-invoicing will cut paperwork and errors, help businesses get paid faster, and help close the gap between the VAT that should be paid and what is actually collected. Many countries in Europe and elsewhere already require it.

HMRC has said it won't introduce real-time reporting of invoices to HMRC alongside the 2029 mandate. It might consider that later, once e-invoicing is well established.

Sources

• Promoting electronic invoicing: consultation response (HMRC and DBT, 26 November 2025)
• Government sets out plans for e-invoicing overhaul (press release, 13 February 2025)
• HMRC VAT Notice 700/63: electronic invoicing
• Procurement Act 2023, section 67: electronic invoicing
• Cabinet Office guidance: electronic invoicing and payment (updated 20 July 2026)

All facts on this page were last checked against these official sources on 19 October 2026.

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