HMRC has confirmed that Peppol will be the core e‑invoicing network in the UK, with a mandate set for 2029. The decentralised model will allow businesses to exchange invoices directly through their software providers, and real‑time reporting will be considered later. Technical standards and a roadmap are expected at Budget 2026.
The VATfaqs digest
Global VAT news, delivered Tuesday and Thursday. Free, curated from 50+ official sources, no spam.
No spam · Unsubscribe any time
UK Government · about 22 hours ago
The UK government is consulting on extending online marketplace VAT liability to domestic sellers, requiring marketplaces to collect and remit VAT on sales by UK-based sellers when goods are situated in the UK at the point of sale. The consultation runs from 23 June to 18 August 2026 and aims to reduce non‑compliance and level the playing field for VAT‑compliant sellers.
Guardian · 4 days ago
The UK government has introduced a temporary VAT cut from 20% to 5% on a range of family-friendly activities, including cinema, theatre, attractions and children’s meals, running from 25 June 2026 until 1 September 2026. Businesses may choose to pass on the reduced rate, and the scheme also offers free local bus travel for children in England during August.
Withers · 4 days ago
The Court of Appeal ruled that public funds paid to further education institutions are third‑party consideration for the supply of education, placing them within the scope of VAT but exempt. HMRC accepts the judgment, will not pursue a further appeal, and maintains the current position pending consultation, meaning institutions can continue their existing VAT treatment until any future policy change applies prospectively.
VATIT · 4 days ago
HMRC has replaced its default surcharge system with a points‑based penalty regime effective 1 January 2023. Late submissions accrue one penalty point each, with a £200 financial penalty triggered at filing‑frequency thresholds, while late payments incur percentage‑based penalties and interest at the Bank of England base rate plus 4%. Businesses must appeal within 30 days of a penalty notice and can reset points after a compliance period.
Guardian · 7 days ago
The UK government has announced a temporary reduction in VAT on children’s meals from 20% to 5% for the period 25 June to 1 September 2026, as part of the Great British summer savings scheme. Pubs and restaurants are already devising menus to take advantage of the discount, while industry leaders criticize the measure as a token gesture. The scheme also applies to cinema and theatre tickets and family attractions, with an estimated cost to the Treasury of £10.5 bn to £13 bn.
ICAEW · 8 days ago
The UK will apply a temporary 5% VAT rate to children’s meals and family‑friendly entertainment from 25 June to 1 September 2026. The guidance clarifies eligibility, exclusions such as sports events, and that businesses are not obliged to pass the cut on to consumers.
Key Takeaways
The mandate takes effect on 1 January 2029, requiring all VAT invoices for B2B and B2G transactions to be issued via the Peppol network.
The UK will adopt a decentralised model, where businesses exchange e-invoices directly through their chosen software providers rather than a centralised government platform.
No, real-time reporting is excluded from the initial 2029 mandate; the government will consider it at a later date.
Primary source
Read the full article at E-Invoice.appThis summary was published on VATfaqs.com on 24 June 2026. It relates to VAT developments in United Kingdom. The original source is E-Invoice.app.
