What is B2B SaaS? — UK Software Development Guide

4 min readJune 2025ClickMasters Technical TeamReviewed by James Whitmore, CTO
what is b2b saas

Direct Answer

B2B SaaS (Business-to-Business Software as a Service) is a software delivery model where a company sells subscription-based software to other businesses rather than individual consumers. B2B SaaS products typically have higher average contract values (ACV) than B2C, longer sales cycles, and more complex feature requirements (SSO, audit logs, admin dashboards, bulk user management).

B2b-saas in the UK

B2B SaaS in the UK has specific considerations: UK GDPR Article 28 requires a Data Processing Agreement (DPA) with every business customer, as the SaaS provider is their data processor. SSO (Single Sign-On) with Microsoft 365 or Google Workspace is often a procurement requirement for UK enterprise clients. UK Cyber Essentials certification is increasingly required as a vendor security standard by UK enterprise procurement teams. Stripe VAT handling must correctly apply UK 20% VAT to UK business customers.

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