It’s been a long journey for Australia and New Zealand to implement e-invoicing, but the day has finally come. The Australian Taxation Office (ATO) and New Zealand’s MBIE are now approved Peppol Authorities, and the next stages of the A/NZ e-invoicing journey can commence.
The effort to standardise invoicing processes has been a collaboration between the ATO, the MBIE, and the e-invoicing industry. With the decision to join OpenPEPPOL, Australia and New Zealand are now taking part in a truly global framework spanning 33 countries worldwide, with registered Service Providers in 26 countries. By having a homogenised e-invoicing system in place, suppliers will garner benefits such as improved cash flow and decreased risk for incurred debt.
What it is and why it matters
In a nutshell, Peppol is a framework that standardises interoperability between service providers in terms of communication protocols, message types, data formats and more. As such, the Australian and New Zealand Governments are now opening capabilities for any supplier to connect to an accredited Service Provider of their choice, giving them the ability for instant set up of electronic invoices when trading with government agencies.
What is Peppol?
Get an overview of Peppol and what it means for your business.
Five-day payment policy
As incentive for suppliers to adopt Peppol, government agencies will start paying e-invoices within five days or pay interest on any late payments (see Department of Finance’s website for more information). The policy will come into effect starting 1 January 2020 and will apply to e-invoices issued, via Peppol, for contracts under $1M AUD. The ATO states that by this date some of the largest federal government agencies will be onboarded and ready to begin using Peppol.
As the Australian Government is aiming to be the leader and driving force for private businesses to use Peppol, it may continue to introduce incentives for suppliers over the coming months. Businesses, especially SMEs, will see immediate benefits such as getting paid faster from government agencies, reducing day-to-day manual labour, and adding value to the customer experience.
Beyond e-invoicing, Peppol supports further message types, including e-orders. Countries around the world are taking advantage of these capabilities as a logical step to standardise their initial e-invoicing implementations and mandates. Similar measures will likely occur for Australia and New Zealand. More importantly, this is a crucial first step to ignite fully-electronic B2B trading, ultimately improving purchase-to-pay and order-to-cash processes across the entire A/NZ market.
Pagero and Peppol
Pagero, as a Certified Peppol Service Provider, has begun the process of becoming accredited in the A/NZ Authorities. Want to find out everything you need to become Peppol-ready and start using e-invoicing? Register for one of our local webinars, held on Fridays at 11.00 (AEST).
Sign up for one of our free webinars to learn more about e-invoicing and Peppol.