Peppol E-invoicing explained: What it is and how it works

Overview of Peppol: Peppol (Pan-European Public Procurement On-Line) is a standardized framework initiated in 2008 to streamline electronic invoicing and procurement processes across Europe, which has since expanded to countries in the Asia-Pacific region. It aims to enhance interoperability among diverse national e-invoicing systems, facilitating compliance for multinational organizations.
Functionality and Structure: Peppol operates through a network of accredited Access Points that connect senders and receivers of electronic documents, such as e-invoices and purchase orders. This 4-corner model (sender, sender’s Access Point, recipient’s Access Point, recipient) ensures secure and efficient document exchange, while a 5-corner model, used in places like Singapore, incorporates tax authorities for real-time invoice validation and tax compliance.
Global Adoption and Benefits: With 37 member countries, including notable non-European nations like Australia and Singapore, Peppol promotes a standardized approach to electronic document exchange, reducing errors and enhancing security. Its widespread implementation offers organizations a simplified method to navigate varying e-invoicing regulations across different countries.

Source Sovos

E-invoicing