What is Peppol?
Peppol is an acronym for Pan-European Public Procurement Online. It is a network that enables the exchange of electronic documents, such as invoices, orders, and catalogues, between buyers and suppliers across Europe and beyond. Peppol was initiated by the European Commission in 2008 as a project to improve the efficiency and transparency of public procurement. Since then, it has evolved into a global network that connects thousands of public and private sector organisations.
Why use Peppol?
Peppol offers several benefits for both buyers and suppliers, such as:
- Reduced costs and errors: Peppol eliminates the need for paper-based processes and manual data entry, which can be time-consuming, error-prone, and expensive. Peppol also reduces the risk of fraud and duplicate payments, as invoices are validated and matched with orders before payment.
- Increased compliance and interoperability: Peppol ensures that electronic documents comply with the legal and technical requirements of different countries and regions, such as the European Union’s Directive on electronic invoicing. Peppol also enables interoperability between different systems and formats, as it uses a common set of standards and specifications.
- Improved visibility and collaboration: Peppol provides a secure and reliable platform for exchanging electronic documents, which enhances the visibility and traceability of transactions. Peppol also facilitates collaboration and innovation, as it allows buyers and suppliers to access new markets and opportunities.
Australian Peppol Authority
OpenPeppol gives authority to various countries to manage the Peppol framework for its members. In Australia, the ATO is the Peppol Authority. The ATO administer the Australian Peppol Authority for the government. In this role, they:
- define Australian requirements for use of the Peppol standards. For example, invoice specifications to support GST tax invoices
- administer accreditation of access points for Australia
- educate, promote and support the adoption of Peppol standards across government and the business community
- work with the digital service providers and the business community to ensure the Peppol framework is suitable and implemented consistently across Australia.
The ATO do not receive a copy of the eInvoice, and are not able to view the contents of any eInvoices being transmitted between businesses.
How to join Peppol?
To join Peppol, buyers and suppliers need to register with an authorised service provider, also known as an Access Point. An Access Point is a software solution that connects the user’s system to the Peppol network and handles the transmission and reception of electronic documents. Users can choose from a variety of Access Points, depending on their needs and preferences. A list of Access Points can be found on the Peppol website or follow the ATO link
What are the next steps for Peppol?
Peppol is constantly expanding and evolving, as more countries and organisations adopt it as their preferred network for e-invoicing and e-procurement. Peppol is also developing new features and services, such as the Peppol Business Interoperability Specifications (BIS), which define the content and structure of electronic documents, and the Peppol Authority, which governs and monitors the network. Peppol aims to become the global standard for electronic document exchange, and to support the digital transformation of the public and private sector.
The good news is that software such as Xero are already at the forefront of rolling out the Peppol principles. You can read more in the article on their website or contact us for more information.