eInvoicing provider explained
Australian businesses interested in using eInvoicing need to use an ATO accredited eInvoicing supplier.
The ATO recently released an updated list of eInvoicing providers. These providers have completed the Australian Peppol Authority accreditation process.
The ATO is a Peppol authority
In October 2019 Australia adopted the Peppol framework for eInvoicing. To be specific the ATO became a Peppol Authority on behalf of the Australian Government.
The role of Peppol Authorities is to establish local requirements as well as provide support for and management of participants.
What is the Peppol framework?
It’s a structure or network used by more than 34 countries around the world to support international trade. What it means for Australian business is an increase in international opportunities.
eInvoicing explained
Electronic invoicing, or eInvoicing is the automated digital exchange of invoices between suppliers’ and buyers’ software and financial systems through a secure open network.
This network means business software can easily interact with client or trading partner’s software. Thus removing the need to enter or scan in data across platforms.
Anyone can join the open network and it’s not limited by the accounting / invoicing package or country. This means it breaks down barriers for businesses to trade both here in Australia and overseas.
Australia adopted the Peppol framework for eInvoicing claiming it’s a more efficient, accurate and secure way to transact with suppliers and buyers than PDF and email.
Updated eInvoicing providers
The accredited service providers list includes organisations accredited for one or two types of services within the Peppol eInvoicing network.
- Service metadata publisher (SMP) services which is where a provider publishes a business’ capabilities in a prescribed way so it can be looked up to determine the address to send business documents.
- Access point services (AP) – where a provider provides document or message transport and translation services. AP services can be provided by
- a business’ internal information technology (IT)
- a business’ accounts payable or accounts receivable vendor
- an outsourced AP provider
The recently updated list includes more than 30 eInvoicing suppliers and more will be added as they are accredited. you can find the full list here.
Of course, it’s important to do your research on service and software providers to ensure which product suits your business needs. If you have questions about your business adopting eInvoicing touch base with the CVW Accounting team – we’re happy to help.
Sources
https://www.ato.gov.au/business/eInvoicing/
https://softwaredevelopers.ato.gov.au/australian-peppol-authority
https://softwaredevelopers.ato.gov.au/eInvoicing
This blog was first published in April 2022. Since then it has been reviewed in August 2023.
