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Procurement in a Nutshell – E-Invoicing deadline

In May 2019, the Government issued a PPN to implement The EU Directive on electronic invoicing in public procurement through The Public Procurement (Electronic Invoices etc.) Regulations 2019.

Action Note 03-19 – The Public Procurement (Electronic Invoices etc.) Regulations 2019

This PPN applies to Contracting Authorities and other contracting entities (utilities) awarding contracts which fall within the scope of:

  • Part 2 of the Public Contracts Regulations 2015;
  • The Concession Contracts Regulations 2016;
  • Parts 1-4 of the Utilities Contracts Regulations 2016; and
  • The Defence and Security Public Contracts Regulations 2011.

This now requires them to receive and process supplier invoices that comply with the technical e-invoicing standard developed under the Directive.

Although the PPN had immediate effect, sub-central contracting authorities and utilities had until 18th April 2020 to start complying with the new requirements.

What did you need to do before 18th April 2020?

These Regulations require contracting authorities and entities to include an express term which obliges them to accept and process undisputed invoices that comply with the technical e-invoicing standard. Should an express term relating to electronic invoicing be absent, such a term will be applied.

There are some exceptions for certain types of defence and security contracts.

Model contractual term

The Government has provided the below model term that should now be included in your contracts:

“1.1      The Authority shall accept and process for payment an electronic invoice submitted for payment by the Supplier where the invoice is undisputed and where it complies with the standard on electronic invoicing.

1.2       For the purposes of paragraph 1.1, an electronic invoice complies with the standard on electronic invoicing where it complies with the European standard and any of the syntaxes published in Commission Implementing Decision (EU) 2017/1870.”

How can we help?

If you require any advice regarding current or perspective contracts on whether you’re satisfying this regulation, please do not hesitate to contact a member of our team.

Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.

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