Government committed to mandate customers’ right to request Peppol-based e-invoicing
The Australian Department of Treasury remains committed to pushing the adoption of PEPPOL-based BIS Billing 3.0. e-invoicing on B2B transactions. Currently, it is adopted for B2G by 2022.
Its current intention is to legislate to allow vendors the right to insist their Australian-resident business customers must accept Peppol e-invoicing. This is likely to be phased as follows:
- Year 1: any company may require their large (turnover above AUD 50 million) suppliers to provide PEPPOL e-invoices;
- Year 2: As above for medium-sized (between AUD 10 million and 50 million) suppliers; and
- Year 3: As above for any supplier.
VAT Calc’s live VAT invoice transaction and e-invoice tracker on real-time transaction-based VAT or GST reporting lists all the countries imposing e-reporting and similar reporting.
B2G Peppol invoicing since July 2022
Australian government and its agencies have adopted Peppol e-invoicing since 1 July 2022.
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Pan-European Public Procurement Online (PEPPOL)
PEPPOL is an international non-governmental organisation which has developed a harmonised protocol and technical specifications for e-Procurement between governments and businesses. PEPPOL, which started in the EU, has been adopted by 38 countries.
This includes the exchange of electronic invoice via access points that connect businesses to the Peppol network and help them exchange invoices with there trading partners. PEPPOL is not a platform in itself; it is the agreed technical specifications, standards, agreements and on-boarding processes for businesses to adopt to ensure efficient electronic exchange of procurement documents, including:
- e-Orders
- e-Advance Shipping Notes
- eInvoices
- eCatalogues
- Message Level Responses, etc.
For live e-invoice preparation in Australia with PEPPOL, VAT Calc’s real-time global Calculator and Auditor services produce instant and accurate tax calculations into your ERP.
CTC e-invoicing and real-time models
| Invoice reporting model | Examples | Features |
| 1. Central platform exchange | Italy, Turkey | Platform responsible for invoice forwarding to customer |
| Customer or receiver may review and reject invoice | ||
| 2. Central clearance | Govt platform accepts invoices, validates, and buyer acknowledges invoice | |
| Brazil, Colombia | Pre-clearance variation - clearance before invoice exchange | |
| Chile, Costa Rica | Post-clearance - clearance short time after exchange | |
| Document types not regulated and therefore inconsistent and may resort to email and similar | ||
| 3. Decentralised clearance | Mexico, Guatemala, Peru, France | Certified e-invoice agent (PAC) submitts inoices |
| Document types not regulated and therefore inconsistent and may resort to email and similar | ||
| 4. Real time digital reporting | Spain, Hungary, South Korea | Invoice listing submitted immediately after invoice issued |
| No acceptance or regulation of invoice by tax authorities |
EU looks to harmonise e-invoicing in 27 member states
EU VAT in the Digital Age reforms include a channel for harmonised Digital Reporting Requirements (DRR) and Continuous Transaction Controls (CTC) by EU states. This grew from the 2020 Tax Plan proposals for a fairer and more efficient EU tax regime.
Asia Pacific e-invoicing
| Country | Date | Comments (click for details) |
| Australia | TBC | PEPPOL-based e-invoicing with no govt intervention B2B |
| China | Nov 2023 | Special e-fapiao VAT invoice being piloted with 2023 full implementation |
| India | Oct 2020 | B2B pre-clearance with separate B2C; completed Apr 2021 |
| Indonesia | Jul 2015 | e-Factur Pajak electronic invoicing |
| Japan | Oct 2023 | Tax qualified invoices |
| Kazakhstan | Jan 2017 | e-invoicing IS ESF |
| Kyrgyzstan | May 2023 | Mandatory e-invoicing for goods |
| Malaysia | Aug 2024 | e-invoicing pre-clearance |
| Mauritius | Jan 2024 | Electronic fiscal cash registers |
| New Zealand | Mar 2022 | B2G PEPPOL-based e-invoicing |
| Philippines | Jan 2024 | 2022 pilot of e-invoices; to follow South Korea model |
| Singapore | TBC | Mandatory B2G e-invoicing on InvoiceNow |
| South Korea | 2011 | Near real-time invoice reporting |
| Taiwan | 2017 | Electronic GUI invoices; non-residents since 2020 |
| Thailand | 2018 | E-invoice reporting where adopted |
| Vietnam | Nov 2021 | Pre-clearance B2B verification code e-invoice |
