A PEPPOL ID is a unique identification number used by companies and governments to facilitate the exchange of electronic invoices and documents.
It is widely used in the EU to ensure that the sender and receiver can easily identify each other when sending important documents and e-invoices on the PEPPOL network.
But how can you activate your own unique PEPPOL ID? And how can you use it to send your first e-invoice?
In this guide, we'll provide you with the following information about PEPPOL:
- What it is, including its history and how it works
- Steps you need to take to register for PEPPOL
- How to obtain and use your PEPPOL ID
- How to issue your first PEPPOL invoice, and
- List all the countries that use PEPPOL, their invoice format, and platforms
What is a PEPPOL ID?
In simple terms, a PEPPOL ID is similar to a phone number. For instance, when an individual (or company) sends you a message by phone, you can identify the sender through their phone number.
Similarly, a PEPPOL ID enables the sender and receiver to recognize each other easily on the PEPPOL network. This PEPPOL identifier consists of a unique number, such as the company's VAT number, chamber of commerce number, or government-issued ID.
Electronic invoices and relevant documents are shared using the PEPPOL network. This exchange platform is a highly secure international network that ensures that the sender and the receiver can safely exchange e-invoices without relying on an unsafe mode of exchange that is sensitive to human errors.
Today, thousands of companies and users worldwide rely on a PEPPOL ID to identify the receiver and sender. This allows companies to send e-invoices and other business documents over the PEPPOL network and eliminates the probability of ghost invoices, (human) errors, and fraud.
A brief history of PEPPOL
PEPPOL stands for Pan-European Public Procurement OnLine project. The EU started the project in 2008 to provide a safe technical infrastructure for sharing e-invoices and other essential documents.
Traditionally, many companies relied on electronic emails to participate in public tenders. However, sending invoices and important documents through email and other means was unsafe.
Therefore, the EU launched a project to ensure a more reliable and regulated e-supported procurement system.
While the network was mainly geared toward the EU, it has since spread worldwide to include users from multiple countries outside of Europe (Australia, New Zealand, Malaysia, Singapore, and Japan).
How does PEPPOL work?
The PEPPOL network utilizes a four-corner model that includes the invoice sender, recipient, and their respective Access Points. Your chosen Access Point provider assigns you a PEPPOL ID, which can be the VAT or government identification number or even your bank account.
When issuing an invoice, the sender creates it using their system, and their PEPPOL service provider validates it and converts it into the PEPPOL BIS format before sending it.
The recipient's AP provider receives the document and converts it into a format compatible with the recipient’s system.
The PEPPOL ID must be unique to prevent errors when identifying recipients and senders. The PEPPOL network has a Directory, often called the network's Yellow Pages.
It is a handy resource for checking the document types supported by different network users. This directory also provides additional information such as entity name, location, PEPPOL ID, and relevant website address.
Is PEPPOL free?
Some parts of PEPPOL, including the PEPPOL directory and eConnect invoice portal, are free, while others require a subscription fee. The overall cost depends on the functionalities needed and the number of invoices you want to issue and receive.
Once you connect your billing or e-invoicing system with a PEPPOL Access Point provider, there’s a monthly subscription fee that covers the costs of issuing and receiving invoices.
How to get a PEPPOL ID?
Here are steps to follow to obtain a PEPPOL ID from a reliable Access Point provider:
Step 1: Register for a PEPPOL Access Point
To obtain a PEPPOL ID, you must register with a PEPPOL Access Point. Luckily, this process is relatively simple with reliable Access Point providers like Storecove.
You can also browse their website to learn about their services. Your preferred Access Point provider will verify the information, which usually takes one business day.
If you're using software to maintain invoices, you may be able to use the software in conjunction with the access point.
Step 2: Set up your PEPPOL AP connection
The AP provider guides you through configuring your ERP to connect to PEPPOL. Storecove offers you multiple types of connections, including:
- SPF secure e-mail connection (for sending companies)
- Delivery by SFTP
- API link (for software packages)
During this step, the provider gives you a PEPPOL ID to use when connecting to the network.
Step 3: Test the connection and start issuing documents
Work with the Access Point provider to ensure the connection works properly. Before using the network to issue electronic documents, you should perform tests and resolve any issues.
Important Considerations when getting a PEPPOL ID
Except for a few providers who still use the AS2 standard, most Access Points support the latest AS4 communication protocol. Preferably, select a provider that supports AS4 or supports both AS2 and AS4.
While you may still use AS2, AS4 is a better option because it meets the latest international standards.
You should also check your provider's PEPPOL authority. Approximately 15 different local authorities have modified some rules to align with local regulations.
The local authority may deviate from the standard rules to facilitate country-specific document types and registration in a particular SMP. It's something to consider if you will be dealing with partners in a specific country.
PEPPOL ID format and example
Understanding the three crucial identifiers is essential for sending and receiving messages on the PEPPOL network. These identifiers will provide information about the sender, receiver, type of message, the message format, and other details.
BusDox participant identifier
The PEPPOL ID is a message that contains information related to the user's identity, followed by the issuing agency code and the global location number.
It is displayed in the syntax:
BusDoxParticipantIdentifier::IssuingAgencyCode:Code.
Document identifier
The document identifier indicates the type of document. It contains information about the document type, the standardized transaction & subsequent extension, and the syntax version.
The syntax for the identifier is DocumentIdentifier = RootNamespace::documentLocalName##CustomizationID::Version.
Process identifier
The Process Identifier is another important field that specifies the process used in the transaction.
How to use your PEPPOL ID
Messages on the PEPPOL network are sent and received using BusDox, Business Document Exchange Network specifications. BusDox is primarily used to identify the services that the network receiver can handle.
Before sending a message, you must identify the receiver and the receiver's Access Point Provider. Information related to the Access Point Provider can be easily found by searching the Service Metadata Publisher database.
The SMP is similar to an address book, which provides information about the receiver's receiving capabilities. It may contain data such as delivery addresses, business processes, and the types of documents supported.Under normal circumstances, you require the following information to send a message:
- The PEPPOL ID of the receiver.
- The document that you want to send.
- The document type ID and the document process ID.
If you're unsure whether the recipient can receive your document, you can check the receiver's capabilities in the participant information tool. Your Access Point provider should also be able to provide you with more information about this matter.
Document exchange between different countries
It's important to highlight that new network users sometimes face difficulties exchanging messages with a recipient in another country. This happens primarily due to the different e-invoicing formats used in that particular jurisdiction.
Factur-X, Finvoice, Svefaktura, ZUGfERD, and BIS V2 are examples of different formats used by their respective countries. For instance, if you want to send an e-invoice to a user in Italy, the only format the government accepts is FatturaPA.
Using a different e-invoice format can cause delays or risks of not being accepted entirely, as there is no guarantee that the format in your country will be accepted in another country.
Instead of learning the proper e-invoice format, it's better to use an Access Point Provider like Storecove to convert your format to the receiver's format automatically. If you intend to communicate with multiple international clients, choose a provider that can do so.
Why use a PEPPOL ID?
The Pan-European Public Procurement OnLine project aims to provide a secure technical infrastructure for exchanging digital messages, participating in public tenders, and sending e-invoices and related documents.
There are several advantages of using a PEPPOL ID:
Instant recognition by buyers in the public sector
PEPPOL is an official EU standard for sending electronic invoices to the public sector. You can use the network to participate in tenders and send electronic documents to government agencies, municipal authorities, and other public sectors.
The PEPPOL ID ensures that you're instantly recognized and your company can become a preferred public sector supplier.
Strict regulations to ensure data safety
In recent years, the European Union has implemented strict rules regarding the safety of data related to electronic documents. Failure to comply with safety rules can result in heavy penalties.
Therefore, getting proper identification and sending your electronic documents according to the official EU standards keeps you safe from compliance irregularities.
Reducing operational costs
Sending e-invoices and related documents to multiple organizations no longer incurs a costly charge. In previous systems, you needed to pay fees and roaming charges to third parties to ensure your data was safe and complied with international standards.
Using the OpenPEPPOL standards, the only fee is the regulated service fee charged by the PEPPOL access point.
Gain access to thousands of businesses using PEPPOL
Using the PEPPOL identifier, you have access to thousands of partners registered with the network. It's easy to exchange messages and communicate with others through a single connection.
In addition to the EU, the framework is also used by the United Kingdom, Australia, Canada, New Zealand, Singapore, and South Africa.
How to send your first PEPPOL invoice
Sending your first PEPPOL invoice involves setting up an electronic address and following PEPPOL specifications through certified service providers for seamless cross-border invoicing.
Step 1: Register for a PEPPOL ID
The first step in the PEPPOL invoicing process is obtaining a PEPPOL ID, which acts as your unique identifier within the PEPPOL network. Begin by selecting an accredited PEPPOL service provider authorized by PEPPOL authorities.
Your provider will issue your PEPPOL ID and handle compliance requirements on your behalf. This PEPPOL ID serves as your electronic address within the network, allowing other businesses and public entities to identify and send invoices to you.
Your service provider will assist you in setting up and managing this address.
Step 2: Ensure compliance with PEPPOL specifications
PEPPOL requires all invoices to adhere to strict technical specifications to maintain interoperability across borders. You must also sign the PEPPOL Transport Infrastructure Agreement (TIA) to acknowledge that you understand the principles and operation of the PEPPOL transport infrastructure.
Review the PEPPOL transport infrastructure standards and guidelines, which dictate the necessary invoice structure, data fields, and mandatory information to ensure compliance. This ensures that your invoices are compatible across various systems within the network.
Work with your service provider to configure your invoicing system or ERP software so that each invoice meets PEPPOL technical specifications, which may include adding or modifying fields like company information, product details, and pricing in the required format.
Step 3: Integrate with PEPPOL transport infrastructure
When transmitting invoices, your system must be connected to the PEPPOL network for secure and reliable delivery. Your service provider helps connect your invoicing software to a PEPPOL access point.
Access points facilitate business communication within the PEPPOL network, providing a secure channel for sending and receiving invoices. Once connected, verify that your access point is fully operational and that all security measures are in place.
The PEPPOL transport infrastructure mandates encryption and secure data transfer protocols to protect sensitive business information.
Step 4: Send your invoice
Once your PEPPOL ID, specifications, and transport infrastructure are set up, you can send your first invoice through the network. Using your configured system, create an invoice that includes all required information per PEPPOL specifications.
Double-check that the invoice format aligns with PEPPOL standards to avoid processing issues. Then, send the invoice through your access point. Your service provider will deliver it to the recipient’s electronic address, ensuring it reaches them.
After sending, track the status of your invoice through your service provider’s platform. The PEPPOL network offers tracking capabilities that allow you to confirm receipt and address any delivery issues promptly.
Countries using PEPPOL and e-invoice format(s) per country
Here are European countries that use PEPPOL:
Here are non-European countries that use PEPPOL:
Requirements for businesses
The following countries require businesses to use appropriate e-invoice format to communicate with other companies and government entities:
E-invoicing Status Per Country
Takeaway: Simplify cross-border transactions for businesses with PEPPOL
Adopting PEPPOL for invoicing offers businesses a secure and efficient way to streamline cross-border transactions. It also helps ensure compliance with local and international regulations.
PEPPOL's role in simplifying the exchange of e-invoices between private companies and public authorities is indispensable for modern businesses navigating a digital economy.
With its widespread adoption by public authorities and private companies, PEPPOL ensures that your business remains connected across borders and complies with ever-evolving regulatory requirements.
Leveraging PEPPOL allows businesses to meet compliance standards and improve transaction speed and accuracy, offering a competitive advantage in the digital economy.
For businesses looking to get started or optimize their PEPPOL invoicing, contact Storecove today and learn how to integrate PEPPOL smoothly and effectively.
More information about the PEPPOL ID?
Contact us for more information or schedule a consult with one of our e-invoicing experts.
Read also:
Comments