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Australia e-invoice 2023 proposal

Peppol-based electronic invoice consultation underway

The Australian government has launched a public consultation on mandated e-invoicing for businesses from July 2023. This would be based on the EU Peppol system, and likely phased in starting with largest enterprises. This is termed “Business e-invoicing Right”.

There is no indication of the Australian Taxation Authority inserting itself into the exchange of e-invoices in order to track and audit GST calculation. This type of Continuous Transaction Controls (CTC) is becoming highly popular in South America, Europe and the rest of Asia.

Two-year phased Australian e-invoicing implementation from July 2023

The possible rollout of e-invoicing would be as follows:

  • 1 July 2023: businesses with a turnover above AUD 50million (approx $35,000 or €31,000);
  • 1 July 2024: businesses between AUD 10million and 50million; and
  • 1 July 2024: businesses below AUD 10million

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 from July 2022

Australian government and its agencies are to complete the adoption of Peppol e-invoicing by 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. Real time invoice reporting Spain, Hungary, South Korea Invoice listing submitted immediately after invoice issued
No acceptance or regulation of invoice by tax authorities
2. Central platform exchange Italy, Turkey Platform responsible for invoice forwarding to customer
Customer or receiver may review and reject invoice
3. 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
4. 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

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

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