PEPPOL-based E-invoicing proposed phased rollout between July 2023 to 2025
The Australian Department of Treasury is proposing to permit businesses to require their suppliers to issue PEPPOL-based e-invoicing on B2B transactions according to the following schedule:
- July 2023: any company may require their large (turnover above AUD 50 million) suppliers to provide PEPPOL e-invoices.
- July 2024: As above for medium-sized (between AUD 10 million and 50 million) suppliers
- July 2025: As above for any supplier
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.
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 | Jul 2023 | PEPPOL-based e-invoicing with no govt intervention B2B |
| China | Jan 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 | Jan 2023 | Mandatory e-invoicing for goods |
| Malaysia | 2024 | e-invoicing pre-clearance |
| Mauritius | 2023 | e-invoicing System with digital transaction reporting |
| New Zealand | Mar 2022 | B2G PEPPOL-based e-invoicing |
| Philippines | Jul 2022 | 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 |
