e-Invoicing mandates across the UK & Europe: the ideal vs. the reality
As governments across Europe and the UK explore the rollout of mandatory electronic invoicing (e-invoicing), the vision is clear: a fully digital, structured and transparent trading environment that eliminates manual processes and closes the tax gaps.
But the reality for most businesses - especially SMEs and specialist industry suppliers - is far more complex. Many operate with legacy ERP systems that can’t simply “switch on” structured invoicing and the expectation of universal adoption overlooks the deeply fragmented nature of supply chain ecosystems.
This article explores the UK’s current consultation on e-invoicing, the wider European mandate landscape and the practical challenges that businesses face in adapting to structured invoicing. Finally, we’ll discuss how OmniPATH is uniquely positioned to bridge the gap between the ideal and the achievable - supporting suppliers and buyers of all sizes in the years to come.
The UK’s e-Invoicing consultation: Ambition meets complexity
In early 2025, the UK Government (HMRC and the Department for Business & Trade) launched a public consultation to explore whether e-invoicing should become a national standard - either mandatory or voluntary. The aim is to align the UK with wider European initiatives that are already underway.
The principle is simple: structured, machine-readable invoice data (e.g., XML or EN 16931 format) allows automatic processing, improving efficiency, accuracy and compliance. However, behind that simplicity lies a major operational hurdle - data interoperability.
While larger enterprises may have more modern ERP systems capable of producing structured data, the same cannot be said for many small and medium-sized businesses who still rely on PDFs, spreadsheets or older software that can only export limited data and formats.
This means the burden of digital compatibility will not fall evenly across the supply chain. Buyers - particularly those with diverse supplier networks - will need to bridge the gap, converting or normalising data from multiple sources into a standard format that their accounting systems can handle.
Europe’s progress: structured data on paper, fragmentation in practice
Across the EU, e-invoicing mandates are accelerating:
On paper, this looks like a harmonised digital ecosystem - but in practice, each country uses slightly different schemas, exchange networks and compliance thresholds.
For a mid-sized business trading cross-border, that means multiple formats, multiple connections and multiple rules - all of which require technical expertise and resources to manage.
And for smaller suppliers using legacy tools, compliance could mean complete system replacement, which is financially unrealistic.
Why universal structured e-Invoicing isn’t (yet) realistic
The truth is that structured invoicing isn’t the whole answer - at least, not yet.
Many suppliers, particularly in sectors like hospitality, construction and independent retail, use bespoke or legacy ERP systems that export limited data and file formats. Integrating directly into structured national or regional platforms (like France’s Chorus Pro or Italy’s SdI) requires re-engineering systems, re-training teams and absorbing new costs.
Even Electronic Data Interchange (EDI) - the long-standing precursor to structured invoicing - is prohibitively expensive for most smaller suppliers. Only the largest suppliers, with high-volume/high-value purchasing customers, can justify the time and the investment.
So the question becomes:
At what point will suppliers be able to offer digital capability without passing the cost back to their buyers?
Until that question is answered, the reality of e-invoicing mandates will remain uneven - beneficial in theory, but burdensome in execution.
The practical path forward: Hybrid capability
A more achievable approach is to build hybrid capability - solutions that can process both structured and unstructured data seamlessly. This enables businesses to remain compliant with e-invoicing frameworks while continuing to work with their existing supplier base, regardless of digital maturity.
For most SMEs, the practical first step isn’t a full systems overhaul - it’s introducing intermediate technology that can interpret, standardise and automate invoice data in whatever form it arrives.
That’s where OmniPATH comes in.
OmniPATH: Bridging the gap between ideal and real
OmniPATH is designed for the real world - where suppliers use PDFs, scanned documents, spreadsheets and legacy exports, while buyers need to centralise, automate and ensure compliance.
Our intelligent platform can:
- Process unstructured and structured data - using AI to interpret invoices regardless of format (PDF, EDI, XML, CSV or image).
- Convert legacy data into compliant structures, ensuring buyers can feed data into their accounting or ERP systems effortlessly.
- Integrate across suppliers and platforms, supporting both traditional invoicing and next-generation e-invoicing frameworks.
- Adapt to changing regulations, from UK voluntary adoption to full EU mandates by 2030.
- Empower all participants, from small independent suppliers to large multi-site buyers, without costly system overhauls.
OmniPATH’s hybrid approach makes it future-proof - ready for structured compliance where required, but inclusive of every supplier, regardless of technical sophistication.
The bottom line
The transition to e-invoicing is inevitable - but full digitisation will not be uniform. While governments and regulators push for structured data, the market reality is fragmented, complex and unequal. If we compare to 'Making Tax Digital (MTD)' this has been 10 years in the making.
Expecting every supplier - large or small - to operate with structured invoice data is unrealistic. Instead, businesses need flexible systems that can evolve with them, bridging today’s data diversity while preparing for tomorrow’s mandates.
OmniPATH stands atthat intersection:
- Supporting unstructured and structured data.
- Enabling compliance without disruption.
- Empowering both buyers and suppliers, now and in the years to come.
Ready to future-proof your invoicing?
OmniPATH helps you simplify today’s complexity while preparing for tomorrow’s mandates.
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