Benefits of Peppol
Peppol is an international framework between providers that enables connected organisations to exchange electronic documents. In the Netherlands, the use of Peppol for e-invoicing is not mandatory, but the government recommends using it. Here are some of the benefits listed for you.
Peppol (Pan-European Public Procurement Online) was established in 2008 and is used for the secure and cross-border reception and/or transmission of e-invoices and purchase orders between companies and European governments. In Europe, there are 12 Peppol authorities, each responsible for the technical management of the Access Points and their supervision in their own country. The Peppol authority in the Netherlands is called the Dutch Peppol Authority (NPa).
Peppol in other countries
NPa is one of the authorities within Europe. Outside Europe, there are three Peppol authorities: Info-Communications Media Development Authority (IMDA) in Singapore, the Ministry of Business Innovation and Employment in New Zealand, and The Australian Taxation Office (ATO) in Australia.
Security
There are no more phantom invoices or duplicate invoices. Everyone working with Peppol in the Netherlands is identified by a unique identifier. In the Netherlands, this is usually the Chamber of Commerce (KvK) number, while in Belgium, it is the KBO number.
International
The Peppol network is globally available. With 37 connected countries and a total of 15 Peppol authorities, it is rapidly becoming the standard for sending and receiving financial procurement messages such as invoices and orders.
Accuracy
Facturen worden foutloos ingelezen in de financiële software. Dit bespaart ook nog eens veel tijd bij het handmatig verwerken en controleren van facturen.
Faster payment
Invoices go directly into the supplier’s financial software package. It has been proven that invoices are paid faster this way. See also the book “This is how we pay faster” published by the Ministry of Economic Affairs and Climate (EZK) in collaboration with the VNG and IPO.
Automatic expansion
For each organisation (receiver and sender) that connects to the Peppol network, the network with which you can exchange invoices automatically expands.
Higher customer satisfaction
All of the above advantages contribute to higher “customer satisfaction,” both for customers and suppliers.
Target audience Peppol
Connecting to the Peppol network is interesting for every organisation, regardless of size, industry, or specialisation. Since April 18, 2019, it has also been mandatory for governments and other procurement-required organisations to receive e-invoices from all their suppliers, with Peppol being the preferred delivery channel.
There are three requirements for exchanging invoices via the Peppol network:
1. Peppol Access Point
In Peppol, software companies and e-invoicing providers work closely together to enable the direct exchange of electronic messages. To connect your organisation to the Peppol network, you need a provider with a Peppol Access Point. You could compare this to providers for a mobile telephone network. In the Netherlands, there are several billing service providers, including eConnect.
2. Peppol ID
To receive and send e-invoices, a Peppol ID is required. This ID is created by registering your organisation once on Peppol. In the Netherlands, the Chamber of Commerce (KvK) number is most commonly used during registration. You can also choose to register your VAT number or IBAN number as your Peppol ID. For Belgian companies, the KBO number is usually chosen. The ID is used to verify the authenticity of the organisation.
3. XML-formats
E-invoices are created in XML file format. In the Netherlands, Universal Business Language (UBL), a standardised XML format consisting of predefined fields, is often used. As a result, it can be easily imported by most financial software.
Using Peppol via eConnect
Connecting to the Peppol network is simple. If you use a financial software package, check if eConnect has a connection with your software. If your software doesn’t have a connection yet or you’re not using a financial package, you can still e-invoice by using eConnect’s free invoice portal.