E-Invoicing Standards
PEPPOL
PEPPOL is a global framework for standardized electronic document exchange, enabling secure, efficient cross-border B2G and B2B transactions.
Overview
PEPPOL (Pan-European Public Procurement Online) is a set of open specifications for establishing a federated electronic procurement system. It enables organizations to exchange machine-readable procurement documents (e.g., invoices, orders) across jurisdictions, eliminating manual data entry and ensuring interoperability.
Architecture
Discovery
- Service Metadata Locator (SML): Central database listing participants, their supported standards, and linked Service Metadata Publishers (SMPs).
- Service Metadata Publisher (SMP): Extends participant metadata to include technical details (e.g., API endpoints) for document delivery.
Delivery
- Uses eDelivery AS4 protocol over Transport Layer Security (TLS) for secure, validated document transfer.
- Four-corner model: Sender and receiver connect via independent Access Points (APs), discovered through SML/SMP.
Governance
- Governed by OpenPeppol AISBL, a non-profit association registered in Belgium.
- Peppol Authorities (PAs): Country-specific bodies that approve AP/SMP providers and set local requirements.
- Transport Infrastructure Agreements (TIAs): Contracts ensuring compliance with Peppol standards.
History
- Originated as an EU-funded project (2008–2012) to standardize cross-border e-procurement.
- OpenPeppol Association founded in 2012 to maintain and expand the framework.
Adoption
Europe
- Mandatory in public sector: Denmark, Sweden, Norway, Germany, Austria, Italy, Finland, Netherlands, Belgium (from 2026).
- UK: Integral to NHS eProcurement; mandatory for suppliers since 2019.
Global Expansion
- Asia-Pacific: Singapore (2018), Japan (2021), Australia, New Zealand, Malaysia.
- Americas: Canada and USA exploring adoption.
Key Benefits
- Cost Savings: Reduces invoice processing costs by ~75% compared to paper/PDF methods.
- Faster Payments: Enables real-time invoice delivery.
- Security: PKI certificates and TLS prevent fraud and ensure data integrity.
- Scalability: "Connect once, connect to all" model eliminates custom EDI links.
Technical Specifications
- Peppol BIS 3.0: Standardizes document formats (e.g., UBL, CII) for interoperability.
- Peppol ID: Unique identifier using existing codes (e.g., VAT, GLN) prefixed by scheme (e.g.,
9930:DE123456789). - Peppol International Invoicing Model (PINT): Extends BIS for global compatibility.
Challenges
- Compliance: Varying national regulations require adaptations.
- Adoption Barriers: SMEs may face technical/financial hurdles in joining the network.
Summary
PEPPOL streamlines global e-procurement by standardizing document exchange, ensuring security, and enabling seamless cross-border transactions. Its governance by OpenPeppol and country-specific authorities ensures compliance while fostering international growth.