The Role of Peppol Network and Its Impact on Businesses
Australia is on the path to revolutionizing its invoicing processes through the adoption of e-Invoicing. While the Australian Taxation Office (ATO) has been promoting the Peppol network for several years, recent initiatives aim to further enhance the efficiency and transparency of both B2G (Business-to-Government) and B2B (Business-to-Business) transactions. Here’s a detailed look at what the current and upcoming changes entail, and how businesses can prepare for the transition.
What the Law Says About E-Invoicing in Australia
B2G E-Invoicing
Although there is no official mandate for B2G e-invoicing, the ATO has been actively encouraging public entities to transition to electronic invoicing using the Peppol network. Many public administrations in New South Wales, South Australia, and all Commonwealth agencies already accept e-invoices in the Peppol BIS 3.0 format. The upgrade to the Peppol INTernational (PINT) A-NZ format is set for May 15, 2025, to align with global standards.
While the Peppol network is highly promoted, other formats for B2G transactions are still permitted:
- Paper-based invoices
- PDF invoices with an e-signature or complete audit trail
- EDI (Electronic Data Interchange)
Invoices must be archived for a minimum of 5 years.
B2B E-Invoicing
For B2B transactions, the Australian Taxation Office allows invoices in mutually agreed formats. This can range from paper and unstructured PDF to fully structured EDIFACT and XML-based formats. However, the ATO is encouraging businesses to adopt e-invoicing via the Peppol network using the Peppol BIS 3.0 format. The transition to the PINT A-NZ format is planned for 2024 and 2025.
The Business E-Invoicing Right (BER) Initiative
The ATO is also working on the Business E-Invoicing Right (BER) initiative, which would allow companies to require their customers or suppliers to use e-invoicing via Peppol. This initiative aims to accelerate the adoption of e-invoicing, enabling businesses to fully leverage their investments in digital invoicing. However, the BER initiative has not yet been formally approved and remains pending.
Invoices must be archived for 5 years.
Timeline
- 2019: Start of the B2G e-Invoicing Initiative
- May 15, 2025: Peppol PINT A-NZ becomes the new standard for all B2G and B2B e-invoices. The Peppol BIS 3.0 format will be deprecated.
Technical Details
Peppol Network & Certification
The ATO aims to maximize the use of the Peppol network, and many public administrations are already connected. Businesses must use certified Peppol Access Points to operate on this network. These access points are e-invoicing service providers that have undergone accreditation to ensure the security and validity of their solutions.
Peppol Company Identifier
Businesses identify themselves on the Peppol network using their Australian Business Number (ABN). This ensures accurate addressing and proper recipient identification for e-invoices.
Peppol Invoice Format
E-invoices must be formatted using the Peppol PINT A-NZ format. The current Peppol BIS 3.0 format will be phased out by May 15, 2025, in favor of the more global PINT A-NZ standard.
Other Invoicing Methods
While Peppol is the recommended method, it is not the only option. Companies can choose from various invoicing methods based on mutual agreements between sender and receiver, including paper, PDF with e-signature or audit trail, and EDI.
Australia’s push towards e-invoicing represents a significant shift towards greater efficiency and transparency in business transactions. Businesses should start preparing now by adopting the Peppol network, understanding the upcoming changes, and ensuring their invoicing systems are compliant with the new standards.
For more detailed information and resources, visit the ATO’s e-invoicing homepage. Stay ahead of the curve and leverage the benefits of digital transformation in your invoicing processes.
Additional Resources
- ATO – E-Invoicing Homepage
- Certified Peppol Access Points in Australia
- PINT AN-Z Specifications
- Public Entity Supervising E-Invoicing in Australia
Prepare your business for the future of e-Invoicing in Australia and ensure compliance with the latest regulations. The digital transformation is here, and it’s time to embrace it fully.
