The best e-invoicing software sends and receives invoices as structured data rather than PDFs, so they flow straight into accounting systems and meet country rules on electronic invoicing. Small businesses usually want simple sending and receiving, while larger firms want one network that handles mandates in many countries. Eleven options follow in no particular order.
A PDF attached to an email looks like an electronic invoice, but to most accounts systems it's just a picture of one. Someone still has to read it, type it in and check it. Real e-invoicing sends the data itself, in a format the other side's software understands.
Governments are pushing hard in that direction, and the UK is no exception. The eleven tools below are listed alphabetically and in no particular order, from small business options to global compliance networks, and every description comes from the vendor's own site, read this week. If you invoice after the work is done, my explainer on invoicing in arrears is a useful refresher.
E-invoicing tools compared
In the free plan column, Yes means the tool's own site names a free plan, a free edition, a free account or an open source version. Trial only means a time-limited trial. Not stated means the pages I read named neither, even where there's a button inviting you to try it or book a demo.
| Tool | Type | Good for | Free plan |
|---|---|---|---|
| Avalara E-Invoicing | E-invoicing and live reporting | Multi-country sellers already using Avalara | Not stated |
| Banqup | Smart invoicing, payments and reporting | Small businesses handling their own admin | Not stated |
| Basware | Invoice lifecycle management and AP automation | Large finance teams processing high volumes | Not stated |
| Comarch e-Invoicing | Global e-invoicing platform | ERP users connecting to tax platforms | Not stated |
| ecosio | EDI and e-invoicing connections | One ERP connection for many trading partners | Not stated |
| EDICOM | EDI, e-invoicing and e-reporting | Manufacturers and retailers already using EDI | Not stated |
| ONESOURCE Pagero | E-invoicing and tax compliance network | Global firms facing many country mandates | Not stated |
| Qvalia | Peppol e-invoicing platform and APIs | Sending and receiving Peppol invoices | Not stated |
| Storecove | E-invoicing API with global compliance | Software makers adding e-invoicing to products | Trial only |
| Tradeshift | E-invoicing, compliance and clearance | High-volume buyers with complex processes | Not stated |
| Tungsten e-Invoice Network | E-invoicing network for accounts payable | Buyers wanting supplier invoice visibility | Not stated |
Eleven e-invoicing tools worth comparing
Avalara E-Invoicing
Best for: Businesses selling in several countries that want e-invoicing and live tax reporting from the provider they already use for sales tax.
Banqup
Best for: Small businesses that want e-invoicing, e-payments and e-reporting handled in one simple administration tool.
Basware
Best for: Large finance teams that want e-invoicing as part of end-to-end accounts payable automation across many suppliers.
Comarch e-Invoicing
Best for: Companies that need their ERP connected to national tax platforms and want e-invoicing compliance across many countries.
ecosio
Best for: Mid-size firms that want a single connection from their ERP to exchange e-invoices and EDI messages with trading partners.
EDICOM
Best for: Manufacturers, retailers and logistics firms that want EDI, e-invoicing and e-reporting compliance from one specialist provider.
ONESOURCE Pagero
Best for: Global companies that want e-invoicing and tax compliance handled through one network as country mandates change.
Qvalia
Best for: Businesses and software makers that want to send and receive Peppol documents through APIs, connectors or a web app.
Storecove
Best for: Software companies and ERP providers that want to add compliant e-invoicing to their own product through one API.
Tradeshift
Best for: Organisations with high invoice volumes and complex processes that want compliance and clearance across many countries.
Tungsten e-Invoice Network
Best for: Large buyers that want suppliers to send compliant e-invoices through one network, with suppliers able to see invoice status.
What the UK has announced on e-invoicing
GOV.UK's outcome to the consultation on promoting electronic invoicing says the UK will introduce mandatory e-invoicing for all VAT invoices from 2029, with a roadmap for implementing the mandate to be published. HMRC and the Department for Business and Trade also planned detailed engagement with businesses, and responses raised concerns about interoperability and cybersecurity.
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So UK VAT-registered businesses have time, but not unlimited time. If you're choosing an invoicing or accounts payable tool now, it makes sense to pick one that already sends and receives structured e-invoices, rather than one that only emails PDFs.
Peppol and other e-invoicing networks
Peppol is an international network and set of standards for exchanging e-invoices and other business documents. You connect through an access point provider, then you can send to and receive from anyone else on the network. Several countries use it for public sector invoicing.
Other countries run clearance models, where invoices pass through a tax authority platform before reaching the customer. Global businesses often want one provider that handles both, while a UK-only small business may only need a simple connection.
Suppliers that exchange orders and invoices with retailers may also need EDI, which our guide to EDI software covers.
Questions to ask an e-invoicing provider
- Which countries' e-invoicing rules do you cover today?
- Are you a Peppol access point, or do you connect through one?
- Does it plug into our accounts package or ERP?
- Can we still send PDFs to customers who aren't ready for e-invoices?
- How are rejected or failed invoices reported?
- How will you keep up as UK rules are confirmed?
Signs you should look at e-invoicing now
- Supplier invoices are retyped. Someone keys in every PDF.
- You sell abroad. Some customers' countries already require it.
- Invoices go missing. Nobody knows if they arrived.
- Month end drags. Matching takes days.
Do you make e-invoicing software? Tool makers can ask to be considered for a featured place on this list.
My plain advice on choosing e-invoicing software
Start by asking your accounts package what it already supports. Many businesses will find their existing software can send e-invoices through a partner, which may be all a small firm needs. A separate e-invoicing provider makes more sense if you trade in several countries or process lots of supplier invoices.
Don't wait for the final UK rules before tidying up your invoicing. Clean supplier data, consistent invoice numbers and fewer manual steps will help whatever format wins. If chasing late payments eats your week, my notes on automating invoicing admin with AI may help.
Frequently asked questions
What is e-invoicing?
E-invoicing is the exchange of invoices as structured data in an agreed format, so the buyer's system can read them automatically, rather than as PDFs or paper.
Is a PDF invoice an e-invoice?
Generally not. A PDF is an electronic document, but its data can't be read automatically by the buyer's system in the way a structured e-invoice can.
Will e-invoicing be mandatory in the UK?
GOV.UK says the UK will introduce mandatory e-invoicing for all VAT invoices from 2029, with a roadmap for implementing it to be published.
What is Peppol?
Peppol is an international network and set of standards for exchanging e-invoices and other business documents between organisations through access point providers.
Do small businesses need e-invoicing software?
Many will be able to use features in their existing accounts package. Dedicated tools suit businesses with high invoice volumes or customers in several countries.
Are there free e-invoicing tools?
Some providers offer test accounts or trials, and some accounts packages include e-invoicing. Check the free plan column in the table above.
