How to Send a PEPPOL Invoice: Step-by-Step Guide for Compliance

Choosing a trusted system or network for storing and exchanging electronic documents is not easy, especially if it involves crucial and confidential documents. The good thing is that PEPPOL exists to provide a network for exchanging e-documents, such as e-invoices.

E-invoices are a convenient and cost-effective way to send invoices to trading partners. With its clear instructions and systematic process, sending a PEPPOL e-invoice is easy.

E-invoice and a sound network system such as PEPPOL can benefit any business, and it doesn't matter if you operate in the private or public sector. Because they offer solutions for global document compliance, it is easy to make transactions globally and comply with different country rules and regulations.

This guide will explain the PEPPOL network, its purpose, and its operation. It will also provide a step-by-step breakdown of sending e-invoices using the network, the common challenges you might face, and how to overcome them.

What is PEPPOL?

PEPPOL is an international network that enables cross-border procurement and the electronic exchange of documents. While it is not an eProcurement platform, it does provide technical specifications for exchanging business services and eProcurement solutions that allow interoperability despite differing systems worldwide.

Since it was developed as an EU standard, most of the businesses in the PEPPOL network are European-based. However, many companies in different countries have adopted the same standard, including New Zealand, the United States, Canada, and Singapore.

PEPPOL has three major components:

PEPPOL eDelivery Network: This is based on common national IT-compatible standards. It uses a shared format and sets the business processes and technical standards while maintaining security through its digital signature technology.
PEPPOL Business Interoperability Specifications (BIS): List of document specifications updated by OpenPEPPOL, an international non-profit organization responsible for developing and disseminating PEPPOL standards. The set standards facilitate secure and open data exchange between businesses in the public and private sectors.
PEPPOL Transport Infrastructure Agreements (TIA): PEPPOL’s legal framework made up of the network governance, such as the general terms of cooperation and responsibilities of all parties.

With these components, PEPPOL provides interoperability in procurement and business services and processes. They also simplify and improve the onboarding process for buyers and suppliers who are trading electronically.

There is also a technical and legal basis built on the PEPPOL eDelivery Network and PEPPOL Transport Infrastructure Agreements. Additionally, they allow exchanging standards-based electronic documents over their PEPPOL eDelivery Network.

Electronic documents include e-orders, e-catalogs, e-advance shipping notes, and e-invoices.

How PEPPOL works

As mentioned, PEPPOL is an EU standard for exchanging electronic documents such as invoices. The EU has laid down a set of technical standards that an invoice, for example, must fulfill in order to be sent via the PEPPOL network.

All public authorities in the EU are required to accept e-invoices that comply with the PEPPOL standards, making it easier for businesses to conduct transactions with the public sector and private companies across the EU.

To ensure your invoice meets these standards and is delivered correctly, you'll need to use a PEPPOL Access Point.

What is a PEPPOL Access Point?

As the name suggests, a PEPPOL Access Point is your gateway to the PEPPOL network. This service is typically provided by a third-party provider.

Once connected, your business can exchange electronic documents with other companies on the PEPPOL network. Think of it like a telecom provider: just as your telecom provider enables you to call someone on another network, your Access Point works with the recipient's Access Point to transmit your invoice.

There are over 300 certified Access Points worldwide. Together, they form a secure global network you can use to send (and receive) invoices and other electronic documents.

When you send an invoice through PEPPOL, your Access Point manages the process of securely transmitting it to the recipient's Access Point, which then forwards it to the intended recipient.

This procedure is illustrated below. It is known as the "Four Corner Model" on account of the four parties involved in the exchange: your company, the recipient's company, and your respective Access Points.

Benefits of PEPPOL invoice

The following are the primary benefits of using PEPPOL for e-invoicing:

Become a preferred supplier to the public sector

PEPPOL is the official e-invoicing standard within the EU, and all public authorities in EU Member States are required to be able to receive e-invoices that comply with this standard.

Adopting the PEPPOL standard enables you to seamlessly send invoices to state and municipal authorities and other public sector organizations across the EU.

Not only that, but adopting PEPPOL early also gives you a competitive advantage, positioning you ahead of competitors who may not have started using this streamlined e-invoicing solution.

For businesses already engaged with the public sector, PEPPOL compliance may have been requested directly, and meeting this requirement will help solidify your place as a trusted supplier.

You may also like: 5 Advantages of Using an E-invoicing Portal in 2023.

Become compliant

In an era where data security is a top priority, how you process data about the companies you interact with is critical. Invoices often contain business-critical data that must be protected from unauthorized access, making it essential to use a secure network for exchanging e-invoices.

The PEPPOL network was designed with security as a core feature. All the information you exchange on a PEPPOL invoice is encrypted to minimize the risk of breaches and data misuse.

When you send electronic invoices via the PEPPOL standard, you ensure that your business complies with the most stringent e-invoicing regulations in the EU.

Avoid costly roaming fees

When exchanging electronic invoices, multiple intermediaries often get involved in the process of handling the transmission of invoices between the sender and the recipient.

These intermediaries typically charge fees for their services, similar to the roaming charges incurred when using foreign telecom networks. These fees can add up, increasing the cost of doing business.

However, the PEPPOL network operates on a different model, where both the sender (invoice issuer) and the recipient only pay the agreed-upon fees to their respective PEPPOL Access Points (service providers).

This system eliminates the risk of unexpected roaming fees between providers, ensuring a more cost-effective solution for electronic invoicing.

Use the same e-invoicing standard all over the world

As we mentioned earlier, different kinds of e-invoicing standards are being used globally, making it challenging for businesses to adopt a unified approach. However, PEPPOL is quickly emerging as a leading international standard.

Even though it "only" came into existence as an EU standard, it is now being adopted by companies far beyond EU borders.

For example, companies in Australia, Canada, New Zealand, and the United States are already a part of the network and will likely be joined by many more.

This means that using the PEPPOL standard potentially empowers you to have the entire world as your market. And since you are using the same secure and standardized PEPPOL format, you don't have to deal with different invoicing protocols whether your business operates domestically or internationally.

In one sentence, PEPPOL streamlines your invoicing process and ensures compliance across borders, making global invoicing simpler and more efficient.

What is an e-invoice?

An electronic invoice (e-invoice) is an integrated electronic format of invoice document exchanged between a supplier and a buyer. E-invoicing is now a common low-cost business-to-business transaction process that is part of electronic data interchange transactions.

An e-invoice has structured invoice data using standard internet-based web forms and is issued in Electronic Data Interchange (EDI) or PEPPOL XML formats.

Meanwhile, an invalid e-invoice is an unstructured invoice issued in PDF or MS Word format. Also, if a paper invoice is converted into an electronic format by copying, scanning, faxing, or any other method, it is not considered an e-invoice.

Unlike traditional invoicing, e-invoicing is not a paper-based process and is not manually intensive. Thus, it lessens your costs and saves you time that manual processing cannot offer.

Other e-invoicing benefits include dispensing manual processes such as printing, mailing, documenting, and storing invoices. It also reduces the duration of billing cycles because it offers a more efficient and faster data transfer.

Most importantly, it comes with better integration between your invoicing software and other business systems and between you and your trading partners.

How to send an e-invoice using the PEPPOL network

PEPPOL follows the four-corner model when sending an invoice. The four parties involved in the model are the sender, the recipient, and their respective Access Points.

If you want to know how to use PEPPOL to send e-invoice, here are the steps:

1. Create a personal profile

Fill in the information to create your profile. After creating a profile, your company will automatically appear as the issuer whenever you send an invoice.

2. Choose a PEPPOL Access Point

PEPPOL allows buyers and suppliers to freely choose their preferred single Access Point provider to connect with all network participants and exchange e-documents. You must connect to a certified PEPPOL Access Point, such as StoreCove.

When you connect to Storecove, you are signing up for one of 300 certified PEPPOL Access Points.

3. Select the receiver of the invoice

You can select and call up your recipient from the PEPPOL register. The register has all the information about the recipient and automatically fills in the invoice.

4. Fill in and send the invoice

Enter the necessary information, such as the services, goods, prices, dates, etc. Once you click the "Send" button, the invoice will be sent through StoreCove's PEPPOL Access Point Network to transmit your invoice to your chosen recipient. The recipient will receive the invoice in real-time.

5. Monitor the status of your invoice

You can easily monitor the status of your invoice in your invoice archive. You can view each invoice issued to double-check the information and see if it was sent correctly. You can also resend invoices or credit notes easily and quickly when necessary.

How to comply with PEPPOL e-invoicing regulations for your business

Business processes are becoming more digitalized as each day comes and goes. Due to the many benefits e-invoicing offers, governments in different countries are now making it mandatory.

It's no longer news that e-invoices are faster, cheaper, safer, and eco-friendly than traditional paper or PDF invoices.

So, where does PEPPOL come in?

Because of the PEPPOL interoperability feature and compliance with various e-invoicing regulations across different countries, many countries consider it their e-invoicing platform, especially in the EU, where it is mostly used.

While PEPPOL is widely accepted in Europe, other regions may have additional regulatory needs.

To stay compliant, businesses operating within the PEPPOL network must:

Adopt structured PEPPOL invoice formats like XML or EDI. This ensures that their invoices meet compliance standards.
Use certified access points. Your chosen provider must meet PEPPOL standards for security, data privacy, and document format.
Monitor updates to PEPPOL Business Interoperability Specifications (BIS).

If you choose the right service provider, they should be able to connect your business to the PEPPOL eDelivery Network and give you a PEPPOL identification number so you can start receiving or sending invoices.

Common challenges with PEPPOL and how to overcome them

As we have explained in detail above, PEPPOL is a critical business requirement for organizations conducting international transactions. However, it's merely a piece of the increasingly complex global e-invoicing development.

Businesses face challenges such as navigating compliance across multiple countries, keeping up with changing regulations, and managing different e-invoice formats.

However, Storecove is here to help. We are a complete e-invoicing solution and stand ready to assist you with all your compliance issues, from identifying obligations and evaluating requirements to designing and managing solutions and keeping track of all the updates in the regulatory environment – on a global scale.

With that said, let's examine some of the common challenges with PEPPOL and how Storecove can help you overcome them:

Complex global compliance requirements

Every country has its own set of rules concerning invoices, tax compliance mandates, and local formats. Keeping track of all these different regulations can be overwhelming.

Global businesses that don't follow the standards required for specific countries risk legal issues or heavy fines and penalties.

Furthermore, subsidiaries in other countries may rely on systems different from those of the parent company. That can lead to incorrect data, inefficient processes, and greater non-compliance risk.

Solution: Businesses should partner with service providers like Storecove that offer comprehensive support across countries. Storecove, for example, offers support in over 50 countries.

We work with local compliance experts, regulatory authorities, and 200 interoperability partners to ensure businesses remain compliant with global e-invoicing standards, including B2G (Business-to-Government) and B2B (Business-to-Business) transactions.

Managing multiple e-invoicing formats

E-invoicing benefits an organization in many ways, including lower processing costs, more accurate invoices, better security, and faster payments.

However, with each country and market using different formats, organizations often struggle to convert invoices into formats that comply with local standards. This leads to errors, delays, and additional costs.

Solution: Businesses should partner with providers that can facilitate seamless conversion between various e-invoice formats and channels. The provider should be able to support format conversions through interoperability partners to ensure that your invoices are transmitted correctly, locally or globally.

Keeping up with regulatory changes

Global e-invoicing regulations are continuously evolving, with new mandates and modifications to existing ones. Businesses need to stay informed of these changes to avoid non-compliance.

However, it can be challenging for you to keep up-to-date with the nitty-gritty of these changes.

Solution: Businesses can overcome these challenges by choosing a partner that provides proactive support in monitoring changes in tax and regulatory environments worldwide.

Their partner should have a compliance management team and external advisers that work together to keep organizations updated and ensure ongoing compliance with all e-invoicing and VAT mandates.

Navigating PEPPOL connectivity

Although PEPPOL is widely adopted, setting up the infrastructure and accessing the PEPPOL network can be challenging for companies that don’t know how to send invoices via PEPPOL.

Solution: Partner with a provider who is a certified PEPPOL Access Point. They will help you simplify e-invoicing, compliance, and connecting to the PEPPOL network.

Maintaining security and data privacy

As businesses exchange sensitive financial data via e-invoices, maintaining data security and privacy, especially across multiple jurisdictions, becomes increasingly challenging. Non-compliance with data protection standards can result in several issues, including legal and severe penalties.

Solution: Partner with a provider that integrates security features such as digital signatures and encrypted transmissions. Ensure your chosen provider's network adheres to strict privacy and security standards, ensuring all transactions remain safe from unauthorized access or tampering.

Takeaway: Streamline your e-invoicing process with PEPPOL

PEPPOL is a great partner for any business in keeping up with digitalization. It provides a good network for your electronic documents, specifically e-invoices. It saves more time, money, and resources that otherwise would have been spent on manually creating and sending invoices.

However, using PEPPOL entails securing the services of a trusted Access Point. Storecove offers e-invoicing solutions in many countries. Storecove can help you streamline your global e-invoicing processes, ensuring you remain compliant across regions. Through our comprehensive network and expertise, you can focus on innovation while we handle the complexities of e-invoicing.

You simply connect with us, and we will do the rest. We also offer a PEPPOL E-invoicing API that is perfect for your ERP and accounting system. Feel free to reach out to us for more detailed information.

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