Peppol - The who, what and how.
What is Peppol?
Peppol, the brand’s name, is an acronym which stands for Pan-European Public Procurement Online. The purpose of the creation of the “Peppol”-platform, is to establish a channel that is utilised to send and receive electronic invoices. This will include sending electronic invoices to recipients, such as Tax Authorities and end-customers.
To put it briefly, Peppol is an extremely secure, international system that provides businesses and governments with the ability to exchange electronic documents, such as e-invoices, in specified data formats. The initial design for Peppol was based on the concept of making public procurement more interoperable in Europe, however, many other countries, outside the scope of Europe are making use of the “Peppol”-platform and standards.
The intention with Peppol is to standardise the method of electronic transaction exchanges. Standards that will make it much easier to complete electronic transactions on a global scale.
Key Features of Peppol
- Common digital signature technology
In order to secure message content Peppol utilises common digital signature technology.
- Secure network
Data is transmitted via Peppol through a secure network to approved service providers, also referred to as “access point."
- Standardised framework
Peppol utilises a standard framework to structure and exchange information via the secured network.
- Peppol Business Interoperability Specifications (BIS)
The standardised structured format for electronic transactional documents and updated as indicated by “v 2.0 or v 3.0”.
- Service Metadata Locator (SML)
The service metadata locator functions as a central address book to assist in searching and finding the correct SMP for any given business within the network.
- Peppol Directory
A public address book where entities within the Peppol network can be found.
Peppol Invoices
There is currently various invoice ‘formats’/standards applicable. Many countries have developed and are still currently developing their own standards for e-invoicing. However, since 18 April 2020 all public sector institutions and authorities, located in the EU, are obliged by law to receive the Peppol standard invoices.
This will essentially allow companies to standardise their business transactions by creating a single format that they will have to adapt to, instead of multiple different national standards/formats.
There is an assumption that there will be a gradual phasing out of national standards/formats, but for the time being both the Peppol standard and national standards will be accepted.
In conclusion, there is much to gain with familiarising yourself with the Peppol standard.
How does Peppol work?
As mentioned above, Peppol is a e-invoicing exchange network, in which electronic documentation can be sent via the network. Currently, there are EU specifications that an invoice must meet in order to be sent through the Peppol network.
Most public institutions in the EU have taken on the responsibility to adapt their systems in order to receive qualified e-invoices. The ability to send and receive e-invoices via the Peppol network is not limited to public institutions, many private businesses can already send and receive Peppol invoices.
In order to send and receive e-invoices there are two important questions:
- How can one be certain that your e-invoice meets the necessary requirements
- How can an invoice be sent to an intended recipient?
A simplified answer to the above questions is = a Peppol Access Point.
What is a Peppol Access Point?
A Peppol Access Point is a credited service provider that has a connection to the Peppol Network. There are currently more than 300 certified Access Points globally, forming a secure world network that a supplier can utilise to send and receive e-invoices.
Describing the Peppol Authority
As stated in the above paragraph, an Access Point is necessary to send and/or receive electronic documents in accordance with the Peppol standard. To ensure that certified Peppol access points furnish business with the necessary technical services and expertise, in accordance with the specifications set out by the EU, multiple official Peppol Authorities have been appointed, i.e. regulatory bodies.
There is approximately, 17 current Peppol Authorities.
In addition to ensuring that Access Points are compliant with the necessary requirements, the Peppol Authorities are also empowered to establish national requirements for the lay-out and content of Peppol documents.
Each Peppol Authority refers to ‘OpenPeppol’, which is the international non-profit organisation that has been given the responsibility for developing and publicising the Peppol standard in Europe and in other parts of the world.
Take Away
In summary, Peppol is a network that has been established to ease the exchange of electronic transactional documents, providing for the necessary fields that are to be included. Regulatory bodies have been appointed to control the certification process for service providers to become Access Points. Access Points are service providers who are able to send e-invoice data through the Peppol Network on behalf of suppliers; and receive e-invoice data through the Peppol Network on behalf of recipients.
eezi – Powered by VATit is certified with OpenPeppol to provide the necessary services to send and receive e-invoice data through the Peppol Network.
Do you need to send e-invoices/e-reports via Peppol? eezi – Powered by VATit can help with that!
