Blog AP Automation, AR Automation Best practice
August 27, 2020
What is Peppol, how does it work, and what makes Pagero different from other Peppol Service Providers? In this article, we’ll answer frequently asked questions and describe the benefits of sending e-invoices through the Peppol network.
What is Peppol?
Peppol is a common framework for secure cross-border exchange of electronic business documents. The framework’s original purpose in 2008 was to make trade easier between European governments. Today, it has evolved far beyond the original intention with the overall objective now being to enable simple, safe e-document exchange between public and private entities worldwide.
Peppol is not a platform for document exchange, but rather a network that connects the many existing platforms already used by businesses and public administrations. It’s an IT infrastructure that makes it possible to connect and send messages to other systems also connected to the network.
Why do business through Peppol?
The digitalisation of business processes is more and more prevalent and the use of e-documents, especially e-invoices, play a significant role in this transformation. E-invoicing is faster, more cost-efficient and more reliable than paper and emailed PDF invoices.
Governments worldwide are implementing e-invoicing mandates, and Peppol has widely become the chosen framework to do so. The infrastructure guarantees security and easy identification of companies sending and receiving e-invoices. Private businesses are also beginning to take advantage of e-invoicing, and Peppol is becoming the popular choice.
Some e-invoicing networks are proprietary, meaning that it is not possible to connect to the systems of other businesses, industries, countries or regions. Peppol is an open, interoperable network whose sole purpose is to bridge the gaps in communication between organisations on different systems and networks.
Which countries use Peppol?
Currently, 28 European countries, Australia, Canada, New Zealand, Singapore and USA use Peppol. Find out more about Peppol’s network reach and selected country profiles here.
How do I connect to Peppol?
To access the benefits of the network, you need to connect to a certified Peppol Service Provider (SP). The SP connects your company to the network so you can send e-invoices and other e-documents in the correct format. To receive e-invoices, you must obtain a Peppol ID. The ID is a unique identification number which the SP can usually provide. Learn more and request access
What’s the difference between Peppol and Peppol BIS?
In short, Peppol is the infrastructure for transferring e-documents and Peppol BIS (Business Interoperability Specifications) is the default format for documents sent through the infrastructure. Peppol BIS acts as a template and set of rules for how to structure the information in the e-documents.
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Choosing your Peppol Service Provider
5 crucial factors to keep in mind – Watch our webinar to find out!
The Peppol Directory, also known as the „yellow pages“ of the network, lists all entities wishing to receive documents via the integrated network. The directory makes it easy for participants to find each other and identify each other’s digital capabilities.
OpenPeppol and Peppol Service Providers
OpenPeppol is a non-profit consortium of interested businesses that regularly gathers to make sure that Peppol remains an effective infrastructure for e-document exchange.
The consortium closely collaborates with stakeholders from a multitude of interest groups as well as representatives from countries that have adopted Peppol. This cooperation between participating entities means that organisations working in partnership with accredited SPs can be confident that their e-documents will be fully compliant.
The infrastructure is further strengthened by a rigorous qualification process for accredited SPs, conducted either through OpenPeppol or a local Peppol Authority.
„Being part of OpenPeppol guarantees Pagero stays ahead of eventual alterations in the Peppol framework, anticipating changes so our clients do not have to.“
Local Peppol Authorities
If a country decides to adopt Peppol, it can either follow all regulations as detailed by OpenPeppol or create its own local Peppol Authority. By creating an authority, a country can int