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If you haven’t already heard the terms ‘Peppol’ and ‘eInvoicing’, you’ll be hearing a lot more about them in coming months.
The Australian Government has adopted the Peppol (Pan-European Public Procurement Online) framework for eInvoicing and mandated that all Commonwealth agencies adopt eInvoicing by 1 July 2022.
The government first flagged its intentions to adopt Peppol in 2019 and has been working with the New Zealand Government on a joint approach. Peppol has since become a central pillar of the Australian Government’s digital business plan designed to transform the nation into a leading digital economy by 2030.
Other government jurisdictions and the private sector are expected to follow as part of a wholesale shift to eInvoicing for B2B transactions.
The Peppol framework is not new. It’s been widely used in public procurement in Europe since 2011 when it was first piloted. Its aim was to simplify electronic procurement across borders by developing common technology standards that would increase efficiencies and reduce costs.
Seventeen European countries were involved in the 2011 Peppol pilot but it was the Norwegian Government that was first to mandate that all suppliers selling to it from 1 July 2012 must send their invoices electronically through Peppol.
Other governments have quickly followed and it is now an accepted eInvoicing platform for more than 30 countries including Germany, Ireland and Italy. Outside Europe, Japan is considering Peppol as the nationwide eInvoicing standard and Singapore’s national eInvoicing initiative is based on Peppol. The US and Canada have also foreshadowed the development of Peppol-based eInvoicing.
In Australia, the Australian Taxation Office is the Peppol Authority with responsibility for overseeing Australia’s eInvoicing framework but the ATO notes that “eInvoices do not go through or are viewed by the ATO”.
Being able to exchange invoice information between accounting systems offers a range of benefits to both purchasers and suppliers. These include:
Faster and more efficient payments
100% accuracy
Greater security
Less paper
More reliable and timely data
Removes late payment penalties
The Australian Government also expects that there will be downstream benefits from introducing Peppol, including greater productivity in the economy and increased tax transparency and compliance as well as the ability for businesses of all different sizes to get paid quickly.
In simple terms, Peppol operates as a software platform designed for the seamless transfer of electronic documents, including electronic invoices, between suppliers and purchasers.
To gain access to the Peppol network, individuals or businesses must first complete a registration process to get a unique Peppol ID number, a step that comes at no cost.
Once registered, when you transmit an invoice via the Peppol platform, the recipient can effortlessly identify your company through your Peppol ID.
It's important to know that you can't directly sign up for an ID with Peppol. Instead, you need to register through a Peppol access point.
These access point providers have the job of making sure your documents follow Peppol's rules and standards, and they make sure your documents reach the right people.
Canon Business Services ANZ (CBS), as an accredited Access Point provider and an adopter of Peppol in Australia, can assist you in the Peppol registration process.
CBS is your trusted partner for navigating the Peppol network and simplifying the exchange of electronic documents, especially invoices, with public authorities, companies, and customers in various countries.
Peppol is primarily utilised for simplifying the exchange of electronic documents, particularly invoices, among businesses, government agencies, and customers across different countries. It acts as a secure network where companies can send and receive critical documents, streamlining invoicing and other business processes. Peppol service providers and access points play a pivotal role in ensuring these electronic documents adhere to Peppol standards and reach the intended recipients correctly.
Peppol stands for Pan-European Public Procurement Online. It's a standardised framework developed to facilitate seamless electronic document exchange among businesses and public authorities. Essentially, Peppol serves as a network infrastructure connecting companies and organisations in various countries, allowing them to efficiently exchange invoices and other documents, similar to a digital "Yellow Pages" or Peppol directory for businesses involved in electronic invoicing.
The Peppol standard for invoices, often referred to as Peppol BIS (Business Interoperability Specifications), defines the technical standards and regulations governing the format and content of electronic invoices within the Peppol network. This standard ensures that invoices transmitted through Peppol adhere to a common format and structure, enabling seamless exchange and processing of invoices among different businesses and countries. It simplifies electronic invoicing processes, making them consistent and interoperable.
Peppol operates as a network that connects businesses, government authorities, and customers in different countries. To use it, you need to register through a Peppol access point, which is a service provider responsible for ensuring your documents meet Peppol's protocols and standards. Once registered, you receive a unique Peppol ID. When you send an electronic document, like an invoice, the recipient identifies you by your Peppol ID. The Peppol network streamlines the process, making it easy to send and receive electronic documents, particularly invoices, enhancing efficiency in business processes and cross-border transactions.
Peppol Directory is a network of access points and service providers that connect companies and recipients' access points to facilitate e-invoicing and document exchange according to specific specifications. It serves as an authority for organisations to create, access, and receive documents within the Peppol e-invoicing ecosystem.
