3 minute read

E-invoicing in the UK - Compliance Now Enforced

What is e-invoicing and why is it important?

To better understand the importance of the Directive and what it means for the UK we should take a closer look at the definition of an e-invoice. Within the context of business-to-business (B2B) commerce and trade, the definition of an e-invoice is that it should contain data from the supplier in a format that can be integrated into the buyer’s Accounts Payable (AP) system, ERP or other backoffice system, without requiring additional data input from the buyer’s AP administrator.

Any B2B process where invoice data is exchanged, should be standardized and automated for true e-invoicing to be run efficiently. To be able to achieve this, invoice data should be structured and issued in an electronic format such as EDIFACT, ANSI X12 or XML or by using standard internet-based web forms. For clarity, unstructured invoice data issued in PDF or Microsoft Word formats, paper invoices sent via fax machines, or scanned paper invoices shared via emails are not true e-invoices.

Governments, particularly the European Union and its member states, are increasingly making e-invoicing mandatory. This addresses the complexity caused by the use of varied e-invoicing formats across countries or businesses through the introduction of a standard. All too often, using varied formats cause additional operating costs and overhead for businesses, public contracting bodies and contracting entities, which can be overcome with a single standard. E-invoicing also makes auditing and tax compliance more accurate and efficient by linking directly with a company’s ERP system.

White Paper - E-invoicing in Europe

More about the Directive in the European Union and the consequences for the UK

As of May 2019, the UK implemented The EU Directive on e-invoicing in public procurement through The Public Procurement (Electronic Invoices etc.) Regulations 2019. This is an interesting decision in time where the UK is in the process of leaving the European Union and Article 7 of Directive 2014/55 on electronic invoicing in public procurement states that:

“Member States shall ensure that contracting authorities and contracting entities receive and process electronic invoices which comply with the European standard on electronic invoicing whose reference has been published pursuant to Article 3(2) and with any of the syntaxes on the list published pursuant to Article 3(2).”

According to the Directive: “The Regulations require contracting authorities and entities to include in their contracts an express term which obliges them to accept and process undisputed invoices that comply with the technical e-invoicing standard. “

The requirements apply to central government bodies with immediate effect, while local government and utilities have until 18 April 2020 to comply “but may voluntarily do so earlier”, stated the PPN.

Questions about e-invoicing in the UK?

Do you still have questions in regard to e-invoicing in the UK? Reach out to us – we are happy to help!

Are you aware of our free XML/Peppol document validator?

To help those in need of a simple and easy way to validate formats and file types, from CII (Cross-Industry Invoice) to UBL, we’ve created a free online validator. To try it out yourself just click here.

Subjects

most read

Keep on reading

8 minute read

Peppol Message Responses - A Helpful Guide

Peppol acknowledgements, message level responses and business level responses are a key part of what makes Peppol such an attractive prospect for modern B2B data exchange. Find out how they...

7 minute read

Sending Electronic Invoices in Spain Using the FacturaE Format via the FACeB2B System

We present the status of e-Invoicing in Spain and give an outlook on the future implications if the current regulation will be extended to all companies in Spain.

10 minute read

Alternative Solutions for EDI Data Exchange with SAP PI

Many companies use SAP PI to enable data exchange between a given SAP ERP system and its connecting systems. Discover the options available.

5 minute read

What is Master Data and Why Does it Matter?

Efficient master data is crucial to successful EDI processes and a streamlined supply chain. Find what you can do to improve yours.

7 minute read

E-invoicing in Poland

Big changes are planned for e-invoicing in Poland over the next few years. Find out what's ahead and how long you have to implement changes.

5 minute read

E-invoicing in Spain

What are the regulations when it comes to e-invoicing in Spain? Find out what's required and what changes are likely in the future.

5 minute read

E-invoicing in France

Is e-invoicing in France mandatory? Read our article to find out what you need to do to achieve compliance and prepare for the future.

8 minute read

An Introduction to the Four Main EDI Methods

Do you know which of the main EDI methods makes most sense for your business? To help, in this article we break each method down one by one.

20 minute read

The Future of EDI

Debunking the myths and building a realistic picture of what the next decade will bring for B2B integration.

5 minute read

Why an API Connection is Key to a Streamlined EDI System

Discover how your business could improve EDI processes through the use of an API connection to your EDI service provider.

Upcoming Webinar - Ensuring EDI Doesn’t Fail in Your Next S/4HANA ProjectRegister Now!
+

We use cookies to provide an optimal website experience. You decide which one you want to allow. Depending on the setting, however, not all functionalities may be available to you. Data protection & imprint.