Key Points:

• E-invoicing is a key step forward in improving the way we do business in Australia and New Zealand. 
• Electronic invoicing (or e-invoicing) is the automated digital exchange of invoice information directly between a supplier’s and buyer’s software based on an agreed standard.

Full Article:

E-invoicing is a key step forward in improving the way we do business in Australia and New Zealand.  Electronic invoicing (or e-invoicing) is the automated digital exchange of invoice information directly between a supplier’s and buyer’s software based on an agreed standard.

E-invoicing

Electronic invoicing (or e-invoicing) is the automated digital exchange of invoice information directly between a supplier’s and buyer’s software based on an agreed standard.

With e-invoicing:

• businesses will no longer need to generate paper-based or PDF invoices that must be printed, posted or emailed
• buyers will no longer need to manually enter or scan these into their software.

Australia has adopted the Peppol framework for e-invoicing. This is an international standard has been used in over 38 countries globally, for longer than a decade.

Peppol e-invoicing is a more efficient, accurate and secure way to transact with your suppliers and buyers. It uses standardised data that is securely transmitted via a network of approved service providers, called access points.

Access points connect you to the Peppol network and help you exchange invoices with your trading partners.

To reflect its ongoing commitment to e-invoicing, the government announced further investment to increase business awareness of e-invoicing as part of its Digital Economy Strategy.

All Australian Commonwealth Government agencies must be able to receive Peppol e‑Invoices by 1 July 2022 . This has generated a momentum that is now accelerating the interest in, and adoption of, e‑Invoicing by businesses in ANZ.

How does it work?

How to receive an e-invoice:

An e-invoice is sent directly to the accounts payable software of your customer through a secure e-invoicing network. Xero uses Peppol for its e-invoicing network because it’s the framework that the New Zealand and Australian governments adopted for standardised e-invoicing.

The receiver of the e-invoice needs to be registered to Peppol to receive e-invoices. When you send an e-invoice, their registration is validated. If they’re not registered, you’ll be notified that the e-invoice can’t be sent and you can send the invoice as a PDF or by email instead. You don’t need to be registered with Peppol to send an e-invoice.

You can send e-invoices even if your customer is using a different software system. The e-invoice is delivered directly into your customer’s accounting system, where it can be approved without the need for manual entry.

How to send an e-invoice:

For Xero users, business owners will need register your business with the Peppol network to receive e-invoices. Once your business information is verified and registration is complete, you’ll be able to receive e-invoices from your supplier directly in Xero. You can receive e-invoices even if your supplier is using a different software system.

We use the Peppol network because it’s the framework that the New Zealand and Australian governments adopted for standardised e-invoicing.

Your business’s information is used to verify and register your business with Peppol, including:

• The legal business name
• Entity type
• Registered address or postal address

Only certain business entities can be registered to receive e-invoices. Entity types that you can register with include:

• Private companies
• Discretionary trusts
• Family partnerships
• Individual/sole traders
• Limited partnerships
• Local government entities
• Other partnerships, trust strata-titles and unincorporated entities

Your organisation needs a business contact and a legal representative for registration process. The business contact will act as the point of contact for communications about Peppol e-invoicing. The legal representative should be someone that has the authority to act on behalf of the business. This can be the same person.

Need help?

The process to get started takes no time at all and is very easy to implement.  If you need assistance to get started with e-invoicing, please contact  our office on 03 8320 0320 for instructions.

If you have any questions or need advice and clarity specific to your business, feel free to contact Semmens & Co on 03 8320 0320 for a free consultation.