Invoicing for UK businesses — MTD & VAT compliance.

The UK doesn't have an imminent B2B e-invoicing mandate. What it does have is Making Tax Digital (MTD) for VAT — a digital-records-and-submission framework that HMRC has been rolling out since 2019 and that now covers all VAT-registered businesses. If you're in the UK, MTD is the compliance story; structured e-invoicing is on the longer horizon.

The short version

VAT in the UK is administered by HM Revenue and Customs (HMRC) under the VAT Act 1994 and VAT Regulations 1995. The standard VAT rate is 20%, with reduced (5%) and zero-rated supplies for certain categories. UK VAT invoices have a defined field set that has to be on every B2B invoice over GBP 250.

Making Tax Digital (MTD) for VAT requires VAT-registered businesses to:

1. Keep digital records of all VAT transactions.
2. Maintain digital links between the systems that hold those records (no manual copy-paste).
3. Submit VAT returns to HMRC quarterly through compatible software.

No imminent UK B2B e-invoicing mandate is in force today. Public guidance has flagged plans for mandatory e-invoicing on a longer timeline (post-2028), but nothing is set for the near term. The MTD-for-VAT obligation is the active compliance hook now.

MTD requirements

The three pillars, plainly:

Digital records. VAT records — sales invoices, purchase invoices, VAT amounts by rate, adjustments — must be kept in a digital form. PDFs in a folder don't satisfy "digital records" in the MTD sense; the data has to live in software that can read it and pass it on.

Digital links. Where data moves between systems (e.g. from your invoicing tool to your VAT return software, or between spreadsheets), the link has to be digital — copy, formula, API, file import. Re-typing numbers manually breaks the digital-link rule.

Quarterly submissions. VAT returns are submitted to HMRC through MTD-compatible software via API. The return data has to flow from your digital records, not be entered by hand into HMRC's portal.

UK VAT Invoice format

The mandatory field set for a full UK VAT invoice (sales over GBP 250 or to VAT-registered customers):

• "Tax Invoice" or "VAT Invoice" label.
• Unique sequential invoice number.
• Issue date and, where different, tax point.
• Supplier name, address, and UK VAT number.
• Customer name and address; customer VAT number for invoices over GBP 250 or to VAT-registered customers.
• Description, quantity and unit price of each item.
• VAT rate per line (20% / 5% / 0%).
• VAT amount.
• Total including VAT.
• Currency — GBP preferred; foreign-currency invoices must state the VAT amount in GBP too.

Simplified and modified VAT invoices are permitted for retail and lower-value sales — Guliel produces those automatically where the transaction qualifies.

How Guliel handles it

Honest scope. Guliel produces UK-compliant VAT invoices and gives you the digital-records side of MTD. We are not an MTD-bridging tool for filing returns — that piece sits with your accountant or a dedicated MTD-filing solution.

What we cover:

• Full UK VAT Invoice as a first-class document type — "Tax Invoice" label, supplier name and VAT number, sequential invoice number, customer details, line items, VAT rates and amounts, totals.
• Simplified and modified VAT invoices for qualifying retail and lower-value sales.
• Foreign currency invoices with GBP VAT amounts where required.
• Digital records for sales and purchases — every invoice and expense lives in Guliel's structured data store, queryable and exportable.
• VAT by jurisdiction report — the dataset your accountant or MTD-filing software needs to produce the quarterly return.
• Reverse charge annotations where applicable (domestic reverse charge for certain construction services etc.).

What we don't cover:

• MTD-direct filing to HMRC. Quarterly VAT submissions to HMRC under MTD are handled by your accountant or a dedicated MTD-bridging / filing tool. Guliel exports the data; the filing happens via your MTD-compatible software.
• Full UK statutory accounting. Guliel is not a Companies House filing tool or a full UK accounting ledger. Pair us with Xero, QuickBooks or your accountant if you need full double-entry and statutory accounts. See /invoicing for our scope.

Why UK SMBs use Guliel

• Per organisation, not per seat pricing — see /pricing. Free for up to 200 invoices a month; $20 for 5,000.
• Multi-country — UK businesses with EU customers post-Brexit need to issue UK VAT invoices for domestic work, EU VAT invoices (including reverse charge) for B2B exports to the EU, and country-specific structured invoices (XRechnung, ZUGFeRD, and Peppol BIS for jurisdictions that require it) where applicable. Guliel generates all of those from one platform; Peppol network transmission is landing later this year when Guliel becomes a certified Access Point.
• Bidirectional supplier flow — unique in the market. Send orders to suppliers, suppliers invoice back, reconciliation is automatic.
• AI companion + automations — schedule monthly accountant bundles, auto-send invoices on creation, build new automations from natural-language prompts.

FAQ

Is there a UK B2B e-invoicing mandate?

Not in the near term. HMRC has signalled longer-term plans for mandatory e-invoicing in the UK on a post-2028 horizon, but nothing is in force now. The active compliance regime is Making Tax Digital (MTD) for VAT.

Does Guliel submit my VAT return to HMRC?

No. Guliel keeps your digital records (sales invoices, purchase invoices, VAT amounts by rate) and exports them in the format your MTD-bridging or filing tool expects. The quarterly submission to HMRC happens through that filing tool or via your accountant.

What VAT rate does Guliel apply by default?

20% standard rate. 5% reduced rate and 0% zero-rated supplies are supported per line item. Exempt and out-of-scope supplies are handled.

Can I issue a simplified VAT invoice?

Yes, for qualifying retail sales under GBP 250 (and similar thresholds). Guliel will produce the simplified format automatically when the total qualifies. Modified VAT invoices for retail sales over GBP 250 are also supported.

What about invoices in foreign currency?

Supported. Guliel will issue the invoice in the chosen currency and state the VAT amount in GBP alongside, per HMRC requirements. Exchange rate basis is configurable.

Can I migrate from QuickBooks or Xero?

Yes — customers, invoices and payment history import. Full chart of accounts and ledger entries don't, because Guliel is not a full accounting platform. UK SMBs who want full accounting often keep Xero or QuickBooks for the ledger and run Guliel for invoicing, expenses, suppliers and reporting.

Start free at /pricing. UK VAT invoices, MTD-ready records.