What is eInvoicing?
Electronic invoicing (eInvoicing) is the automated exchange of invoices directly between buyers’ and suppliers’ financial systems.
eInvoices can be sent directly between a buyer’s and supplier’s software systems, as long as both are Peppol eInvoicing enabled.
eInvoicing is different from current invoicing methods because it operates on an open network – that means your software can interact seamlessly with your trading partner’s software. Supplier’s invoices will be automatically imported into the customer’s invoicing system – removing the need to key in data like we do today.
Because it operates on an open network, anyone can join, and it’s not limited by the accounting or invoicing package that you choose to use, or the country you live in. It breaks down barriers for businesses to trade both here in Australia and overseas.
For more information visit eInvoicing on the ATO website.
2021-2022 Budget Announcement
As part of the Digital Business Plan, the government announced on 29 September 2020 that:
- the Commonwealth will mandate eInvoicing for all agencies by 1 July 2022, with over 80% of invoices being able to be received electronically by 1 July 2021
- it will also consult on options for mandatory adoption of eInvoicing across all levels of government and by businesses.
There are two ways your software solution can be eInvoicing enabled:
- you can partner with one or more access points who are Peppol accredited, or
- you can become an access point yourself and achieve Peppol accreditation in Australia.
A key concept of Peppol is ‘connect to one – connect to all’. Once you connect to one Peppol access point, you are connected to all access points on the network, both domestically and internationally. By partnering your software solution with one or more access points (based on what best suits your commercial situation), you are connecting users of your software to the whole Peppol network.
The ATO has also published a list of Australian accredited access point providers you may wish to partner with.
Another option to enable your software for eInvoicing, is to become your own access point. To become eInvoicing enabled as an access point, you must complete the steps for either the Australian process for Australian Peppol Service Providers or internationally accredited access points.
Once you have either partnered with an Australian accredited access point or your own built in access point, you may wish to be included in our list of eInvoicing-Ready software products by completing the eInvoicing–Ready assessment process.
Types of eInvoicing-Ready software products include, but are not limited to Enterprise Resource Planning, business accounting products, accounts payable and/or accounts receivable products, and practice management products.
Peppol eInvoicing pilots
A series of eInvoicing pilots will be undertaken within 2021–22 financial year. The purpose of the pilots is to:
- validate Peppol across a variety of scenarios
- gain insights on how best to maximise the value of eInvoicing
- drive adoption across supply chains.
Visit the Supply Chain Pilot Factsheet (DOCX, 222KB) for more information.
To register your interest to participate in a pilot, please email the eInvoicing@ato.gov.au.
Contact eInvoicing@ato.gov.au if you have any questions.