Greece has been in the process of implementing mandatory B2G e-invoicing over the past few years, with a B2B e-invoicing mandate expected to follow.
Following reports that Greece had requested a derogation to introduce mandatory B2B e-invoicing in 2024, the European Commission has published a proposal for a Council Implementing Decision to grant this authorisation.
This proposal confirms the Commission’s unanimous support for Greece’s intention to introduce a country-wide B2B e-invoicing mandate. It will be submitted to the European Council as a formal step before becoming an official decision.
Taxpayers and transactions in scope
In July 2024, Greece requested authorisation from the European Commission to introduce mandatory B2B e-invoicing.
According to the Commission’s proposed decision, the obligation will cover transactions between taxable persons established in Greece (B2B transactions). As a result, taxpayers who are VAT-registered in Greece but not established in the country will be excluded from the mandatory scope.
E-invoicing and existing tax obligations in Greece
According to the Greek government’s request, mandatory e-invoicing will strengthen the existing myDATA e-accounting system which has been in place since 2018. The system requires taxpayers to transmit transactional and accounting data to the tax administration in real-time or periodically, updating a set of online ledgers maintained on the government portal.
myDATA will continue to exist, but the Greek government foresees its improvement once e-invoicing becomes mandatory. E-invoice data will directly feed into myDATA, providing real-time information and ensuring higher data quality.
Additionally, such data will be used to pre-fill VAT returns – a measure already in place in Greece – but which should be facilitated and improved with the advent of mandatory e-invoicing.
E-invoice format
Greece should allow the issuance of e-invoices compliant with the European standard (EN 16931) in order to foster interoperability. The Commission does not mention any other specific formats.
While taxpayers will be able to exchange e-invoices in line with the EU standard, they will only report to myDATA the information necessary for tax purposes – rather than the full invoice.
Taxpayers are expected to be able to issue e-invoices via an Electronic Invoicing Service Provider, upgraded management programs (commercial/accounting, ERP) or the “timologio” free government application. However, more details will be revealed after the derogation is granted and the Greek government publishes its mandatory e-invoicing framework.
ViDA implications
The European Commission’s explanations also conclude that the e-invoicing system Greece aims to implement is aligned with the VAT in the Digital Age (ViDA) proposal, which was recently approved by ECOFIN (Economic and Financial Affairs Council configuration of the Council of the European Union) and is expected to be officially adopted during 2025.
Seeking EU approval has become a common approach in the EU, as the current VAT Directive allows taxpayers to exchange invoices in any format, paper or electronic. It also mandates that the use of an electronic invoice is subject to the buyer’s acceptance.
Countries such as Italy, Poland and Romania, and others have already obtained authorisation to implement mandatory e-invoicing systems. However, this will change once ViDA is enforced, as EU Member States will no longer need to request such authorisation if they wish to introduce mandatory e-invoicing systems for domestic transactions.
What’s next for Greece B2B e-invoicing?
The Commission proposes to grant Greece the authorisation from 1 July 2025 until 30 June 2026, as derogations are temporary and must be renewed over time. The Decision will apply until its final date or until ViDA requires Member States to apply any national provisions transposing the Directive once ViDA is officially approved.
This is a proposed decision by the European Commission to allow Greece to introduce mandatory e-invoicing measures. It must follow to by the Council before it becomes official and can produce legal effects. This is a procedural step and, based on the experience of other countries, is not expected to pose an obstacle to Greece’s receipt of the derogation.
For many U.S.-based companies, the first step in global expansion is selling into Canada, especially for eCommerce sellers and marketplaces.
However, to ensure a smooth and compliant expansion, it’s crucial to understand Canada’s unique “sales tax” system. This is a must-attend webinar for anyone doing business in Canada, or planning to expand operations to the Canadian territories.
This webinar will provide five key trends in Indirect Tax Digitization and provide valuable insights into how businesses can craft a long-term strategy to tackle these challenges. In the session, he will also detail how to maintain compliance in an increasingly complex regulatory environment.
In the first blog in our series, we introduced SAP Clean Core concept and how much is being made about its impact on business, specifically the ability to customize an ERP to meet operational needs.
In part two, we addressed how businesses can use the SAP Clean Core principles to create a system that better supports their business objectives and positively impacts their tax and compliance management.
For our third installment in this series, I’d like to spend time talking about your business’ path to Clean Core and what that means for your tax and compliance programs and initiatives.
As outlined in our first two posts, aligning with Clean Core holds a number of significant advantages for companies including making them more nimble, efficient and cost efficient. It is a move I would encourage any business using SAP to consider sooner than later.
Readying for the Project
With any large-scale update, migration or platform change, getting your business ready for Clean Core is a process that takes advanced planning, a sound strategy and buy in from the highest levels of the organization to execute effectively.
In assessing your business’ readiness to adapt to Clean Core, it is important to understand both the short and long-term goals of the project and outline the specific actions that you will need to take to get there. My recommendation is to determine what your ultimate goal is, and then work backwards from there. This will help to ensure that no important steps are missed in the planning process.
With a project of this size and scope, it’s also critical to detail which parts of the project will be assigned to which departments and determine a method of oversight to ensure that all areas of the business are making progress and on track to meet associated deadlines.
When you are dealing with large, multi-faceted organizations, it is not uncommon for departments to move at different paces. This is where having executive buy-in becomes critical as it ensures that the project remains an organizational priority.
Outlining your Change Management Strategy
No two organizations are exactly the same in terms of their makeup and infrastructure. Therefore, you will need to conduct a self-assessment of where you are before you can determine which transformation trajectory makes the most sense for your business.
It is important to realize that an ERP transformation journey is a commitment that will require change. Assessing your organization’s appetite for change and the pace at which these changes can be implemented are critical success factors.
For organizations with the ability and desire to move faster, they will accelerate their time to modernization and be in a position to reap the benefits more quickly. However, I will caution that moving faster than your organization can realistically support can have serious consequences as well, which makes your initial assessment such an important part of your transformation journey.
The Impact on Tax and Compliance
Embracing the tenets of Clean Core can ensure that critical Tax and Compliance functions and decisions are no longer driven by complex and often difficult to maintain customizations within core ERP functions. Moving to an infrastructure with reduced complexity will enable your organization to more easily integrate specific tax solutions that are automated and maintained by third parties. This is an issue of great importance as governments and tax authorities around the world embark on their own technology journey and implement systems that are far more complex than previous generations.
Many countries have moved towards the complete digitization of tax compliance which requires real-time transactional data and complete transparency into your end-to-end transaction processes. Meeting these requirements can be the determining factor in your ability to conduct business within certain regions. Aligning with Clean Core is an important step in enabling your technology to react to changing regulatory conditions faster and more efficiently.
Concluding Thoughts
This type of transformation project should always be supported by and aligned with a solid business strategy. Having a set criterion of what you are trying to achieve and how you will measure effectiveness should be established up front. And global tax compliance should be a foundational element of any transformation event.
Tax and compliance are a great place to start your journey to begin unlocking the full power of aligning Clean Core principles with best-in-class tax solutions.
New Zealand began its e-invoicing journey in 2018 through a joint venture with Australia. While it’s far behind many other countries in adopting electronic invoicing, there are rules and requirements taxpayers must be aware of.
Be sure to bookmark this page to stay on top of future developments.
Currently, only central government agencies in New Zealand are required to be able to receive electronic invoices. This has been enforced since 1 March 2022.
There are no published plans to make e-invoicing obligatory for either B2B or B2G transactions, though—alongside Australia—New Zealand is actively promoting the adoption of e-invoicing. This may eventually lead to a mandate.
By July 2026 the government aims to receive e-invoices for 90% of B2G transactions.
Electronic invoices must be securely archived for at least seven years and formatted according to the PINT A-NZ specification.
Format of electronic invoices in New Zealand
Up until 15 November 2024, New Zealand utilised the A-NZ Peppol BIS 3.0 specification for e-invoices – a specification that was in place since 2018. Now though, it uses PINT A-NZ – a specification mandated by both Australia and New Zealand.
The main changes included:
New identifier values
Refined business rules
Clear publication of the specification
Ensure your e-invoices meet the latest standards – read the full A-NZ PINT guidelines.
Timeline of e-invoicing adoption in New Zealand
While New Zealand started working with Australia on its e-invoicing approach in 2018, it established its own Peppol Authority.
The Ministry of Business, Innovation and Employment (MBIE) is the Peppol Authority in New Zealand. The MBIE is the nation’s economic development agency.
New Zealand utilises Peppol’s framework to enable electronic invoicing throughout the country. This includes adopting a four-corner model, abiding by transport infrastructure agreements (TIA) and using Peppol’s document specifications.
Discover how to implement Peppol e-invoicing in your business.
E-invoicing, short for electronic invoicing, is the exchange of transaction data between electronic accounting systems. New Zealand has been developing its e-invoicing rules and regulations since 2018.
As e-invoicing is not mandated in New Zealand, there are no penalties. That said, central government agencies must be able to receive electronic invoices.
Peppol e-invoicing in New Zealand
The Ministry of Business, Innovation and Employment (MBIE) is the Peppol Authority in New Zealand. The MBIE is the nation’s economic development agency.
New Zealand utilises Peppol’s framework to enable electronic invoicing throughout the country. This includes adopting a four-corner model, abiding by transport infrastructure agreements (TIA) and using Peppol’s document specifications.
Discover how to implement Peppol e-invoicing in your business.
As organizations navigate through SAP transformation projects, e-invoicing compliance integration presents critical challenges, as well as opportunities. As global regulations evolve as well as the complexity of managing e-invoicing workflows across diverse systems increases, businesses need a strategic approach to ensure compliance, efficiency, and value realization.
Our VAT Snapshot series aims to provide you with information to untangle the complex web of tax obligations created by multi-national trading, helping you stay compliant with the latest tax requirements across Europe. In our first webinar of 2025, we’ll discuss the latest e-invoicing updates in Poland, Estonia, Greece and Portugal.
February 10 to 12, 2025 in Dubai
The Middle East and Africa are facing a rapidly evolving landscape for E-Invoicing and VAT reporting. We follow this development and continue the successful first two editions of the E-Invoicing Exchange Summit and proudly announce the 3rd edition to be held in Dubai from February 10 to 12, 2025.
On the pre-conference day, Monday, February 10, you will have the opportunity to start the E-Invoicing Exchange Summit by attending the workshop “GENA Academy Essentials: Everything You Always Wanted to Know About E-Invoicing, but Were Afraid to Ask”. Furthermore, a great networking opportunity awaits you with the Icebreaker Reception in the early evening. The conference itself will take place on Tuesday and Wednesday, February 11 and 12, including the Networking Dinner on Tuesday evening.
Insightful presentations and interactive roundtable sessions on
Mastering E-Invoicing Now: Actionable Steps for Compliance and Efficiency
Streamlining Compliance for UAE E-Invoicing with SAP Document and Reporting Compliance
Convergence of Digital Real-Time Controls & Business Automation
Managing Tax Compliance Risks in the Middle East Post-E-Invoicing
Big Data vs Big Brother – How Mirror Visibility Drives Indirect Tax Consolidation
Global and Regional Compliance Update + Implementation and Adoption Progress Reports from around the Globe
France is one of the most challenging countries in Europe when it comes to the premium tax treatment of motor insurance policies. This is mainly due to the variety of taxes and charges that can apply and the differing treatment of different vehicle types.
This blog provides all the information you need to know about the correct treatment in France.
Which taxes are payable in relation to motor insurance policies in France?
First and foremost, Insurance Premium Tax (IPT) applies to motor insurance provided in France. The rate can vary (rates correct as of December 2024):
The standard rate for risks of any type relating to motor vehicles is 18%
The rate is usually 33% in the case of compulsory class 10 motor liability coverage
The rate for compulsory class 10 coverage is reduced to 15% for coverage provided to commercial agricultural vehicles and commercial vehicles greater than 3.5 tonnes
Class 3 motor cover is treated as a form of property coverage within the scope of contributions to the EUR 6.50 Common Fund for Victims of Terrorism when located in France. There is also a requirement to collect a CATNAT premium (with specific rates for motor coverage which are increasing from January 2025). IPT and contributions to the Major Risk Prevention Fund are due on this premium.
Compulsory class 10 cover triggers National Guarantee Fund contributions. This currently results in three separate rates applicable to premiums, set at 1.2%, 0.8% and 0.58%, respectively.
Finally, it is worth noting that class 3 or 10 coverage of vehicles used for agricultural operations may be excluded from the scope of contributions to the Major Risk Prevention Fund. They do, however, result in separate contributions of 11% due to the National Agricultural Risk Management Fund.
How are taxes on motor insurance policies calculated in France?
The majority of taxes and charges on motor insurance policies in France are calculated as a percentage of the taxable premium and are directly charged to the insured. There are some exceptions, though.
Where applicable, the 0.58% National Guarantee Fund contribution and contributions to the Major Risk Prevention Fund are both insurer-borne so do not result in direct additions to the premiums charged to the insured.
The EUR 6.50 contributions to the Common Fund for Victims of Terrorism are a fixed fee and apply to each insurance contract per annum – regardless of the premium value.
It should also be noted that the IPT treatment of motor insurance can be extended to include ancillary coverage, such as passenger accident cover. This is because the IPT treatment applies to risks of any nature relating to land motor vehicles. It is important to assess each risk to determine whether it is considered a risk related to land motor vehicles as this can be a contentious area in French law.
What vehicles are exempt from tax in France?
Electric vehicles are subject to an IPT exemption, albeit this was amended from January 2024 so that 75% of the premium was treated as exempt (with the remaining 25% being taxable as normal).
A 75% exemption applies to insurance incepting in 2024 for vehicles registered in 2024, but only in relation to the first insurance contract following the vehicle’s registration up to a maximum of 24 months. There is no law currently in effect extending this treatment for vehicles registered in 2025, so such vehicles will not benefit from the 75% exemption as it stands.
Coverage of any nature relating to commercial agricultural vehicles and commercial vehicles greater than 3.5 tonnes benefits from a full IPT exemption, except compulsory class 10 coverage. However, this does not provide an exemption from the applicability of the parafiscal charges mentioned above.
If you still have questions about the taxation of motor insurance policies or IPT inFrance, speak to our experts.
Australia E-invoicing
Australia is on its e-invoicing journey. It has slowly been rolling out electronic invoicing rules and requirements since 2018, when it launched a joint project with New Zealand.
Fast forward to the current day and the country has mandated government agencies to be able to receive e-invoices. While it is not planning on doing the same for B2B, there is a plan for businesses to be able to request electronic invoices.
This page has all you need to know about Australia e-invoicing. Bookmark it to stay in the know as things change.
Since 1 July 2022, only Australian government agencies covered must be able to receive e-invoices. The full list of the e-invoicing-enabled Australian government agencies is available here.
B2B e-Invoicing in Australia is currently optional. The Australian Department of Treasury (ATO) proposed introducing the Business E-Invoicing Right (BER) in 2021 and adopting the mandatory B2B e-invoicing using the Peppol format. The rollout for larger companies was planned to start in July 2023.
Based on communication from the ATO, the current government will not proceed with this rollout. Instead, it strongly encourages businesses of all sizes to engage with the concept of Peppol e-invoicing and pilot it on their own terms ahead of any potential mandate.
If taxpayers opt to issue e-invoices for B2B transactions, they must do so via Peppol’s four-corner model in the PINT A-NZ format.
Electronic invoices must be securely archived for at least five years and formatted in a specific way.
Format of electronic invoices in Australia
On 15 November 2024 it became mandatory to format electronic invoices as PINT A-NZ, following other non-EU countries (Japan, Singapore and Malaysia) in using Peppol’s international invoice specification.
PINT A-NZ is a joint specification between Australia and New Zealand, and it differs slightly from the previous A-NZ specification.
For specific information on how to format an e-invoice in Australia, read the A-NZ PINT specifications.
Timeline of e-invoicing adoption in Australia
Australia’s journey to implementing e-invoicing has been short compared to many other countries. Here are the key dates:
25 October 2018: Australia and New Zealand enter an agreement to jointly explore e-invoicing
December 2019: Australia adopts Peppol framework as its common e-invoicing standard
1 July 2022: Mandatory for government agencies to receive e-invoices
15 November 2024: PINT A-NZ format becomes mandatory
15 May 2025: The prior A-NZ format is no longer supported
Peppol e-invoicing in Australia
Australia and New Zealand have separate Peppol Authorities, though they began working together in 2018 to jointly establish an approach to electronic invoicing.
After entering the ‘Australia and New Zealand Government Electronic Invoicing Arrangement’, the nations adopted the Peppol Interoperability Framework.
As a result, the Australian Taxation Office became the Australian Peppol Authority, and legislation was passed to allow the tax authority to implement e-invoicing.
It’s worth noting that the country’s tax authority does not have access to e-invoices transmitted between businesses. This approach differs from those seen in many other countries, primarily because e-invoicing is often seen as a means of closing the tax gap—meaning tax information is transmitted to national tax authorities in almost real time for transparency and validation.
Navigating U.S. sales tax requirements can be especially challenging for multi-national corporations unfamiliar with the complexities of state-specific laws, rules, and regulations.
In this session, Brian Sengson and Charles Maniace will explore the fundamental elements of US sales tax, discussing the types of business activities that could create a US sales tax compliance obligation, and the steps necessary to create an effective compliance process. Attendees will leave with actionable insights to help their organizations avoid costly compliance mistakes.
Key Takeaways:
Understand the structural differences between U.S. sales tax and VAT and their implications for your business.
Learn how to identify “nexus” obligations across multiple states.
Gain strategies for complying with evolving regulations, rules, and requirements.
On 5 November, the long-awaited EU Commission’s VAT in the Digital Age (ViDA) proposal was approved by Member States’ Economic and Finance Ministers (ECOFIN). This webinar will examine the three pillars of the ViDA package and how you can prepare for the changes it will bring.
European tax authorities are advancing SAF-T implementation, introducing new requirements that will impact VAT compliance across the region. This webinar will offer insights into key updates, including Portugal’s SAF-T delay to 2026, Ukraine’s on-demand SAF-T for large taxpayers in 2025, Greece’s mandatory transport data fields in myDATA e-books from 1 December 2024, Romania’s SAF-T extension to non-established companies and mandatory e-reporting of B2C invoices from January 2025 and France’s reduced PPF scope and new PDP designation requirement for all companies.
In this webinar, we will revisit the foundational principles behind this mandate, covering its evolution up to the latest developments, so you have all you need to keep your business compliant.
The long-awaited VAT in the Digital Age (ViDA) proposal has been approved by Member States’ Economic and Finance Ministers. On 5 November 2024, during the Economic and Financial Affairs Council (ECOFIN) meeting, Member States unanimously agreed on adopting the ViDA package. This decision marks a major milestone in modernizing the VAT Directive, setting the stage for a more efficient and digital VAT system across the European Union.
Certain changes will take effect immediately once the package comes into force, while others will roll out in stages over the coming years.
The text will proceed to formal approval by the Parliament, after which it will be ready for official adoption.
Read our blog below for a detailed breakdown of the amendments impacting e-invoicing obligations, the new Digital Reporting Requirement (DRR), and the timeline for these changes.
New ViDA Proposal Set for ECOFIN Approval
The Council of the European Union has released a new proposal regarding the VAT in the Digital Age (ViDA) reform.
The proposal aims to modernise and streamline VAT systems across the EU, notably e-invoicing and Continuous Transaction Controls (CTC). Members States will review it on 5 November at the upcoming ECOFIN meeting.
If approved, a series of changes will take place over time – some of which will take effect as soon as the Directive enters into force. Here is an overview of the key updates, particularly on e-invoicing and CTC requirements.
What is new, and why the delay?
The new proposal does not substantially modify its previous version. The main change in the new ViDA proposal concerns the dates when measures become effective. Deadlines have been postponed as a result of the setbacks ViDA has faced since its initial draft.
The ViDA proposal has faced delays due to the complexity of its objectives, which are mainly to harmonise the varying VAT systems within the EU. In addition to the extensive consultations held during this process to balance different stakeholders’ interests, an approval of ViDA requires the alignment of Member States’ views and priorities.
This has proved a significant hurdle, as Member States have raised their concerns regarding different aspects of the proposal, such as implementation costs and alignment with EU data privacy rules, among others. ViDA must also go through the formal steps for approval by the European Parliament and the Council of the EU.
These factors combined have made ViDA adoption a lengthy process, but its implementation promises significant benefits in public and private sectors across the EU.
Recap: What is ViDA and what changes with its adoption?
Changes effective with the ViDA’s approval
Removal of EU approval for domestic e-invoicing: Under the current VAT Directive, EU approval is required for Member States to introduce domestic mandatory B2B e-invoicing. Countries such as Italy, Poland, Germany, France, Belgium and Romania have applied for derogations to mandate e-invoicing. With ViDA, Member States may impose domestic e-invoicing without needing EU approval, provided it applies only to established taxpayers.
Buyer e-invoice acceptance eliminated: The current EU VAT Directive states that the use of e-invoices is subject to buyer acceptance. Under ViDA, Member States that have introduced mandatory domestic e-invoicing will no longer require buyer consent.
ViDA changes effective from 1 July 2030
Redefinition of electronic invoicing
ViDA redefines electronic invoices. Under the proposal, electronic invoices are those issued, transmitted and received in a structured electronic format that allows its automated processing. This means that non-structured formats, such as pure PDFs or JPEG images, will no longer qualify as an e-invoice. Hybrid formats, such as ZUGFeRD and Factur-X, can remain due to their structured portion.
In principle, electronic invoices must comply with the European standard and the list of its syntaxes pursuant to Directive 2014/55/EU (the “EN” format). However, ViDA allows Member States to use other standards for domestic transactions upon meeting certain conditions.
From 2030, B2B e-invoices compliant with the European standard will be the default and no longer requiring buyer acceptance. However, if a Member State opts for a different mandatory domestic standard, they may either waive or require buyer acceptance for e-invoices using the European standard.
Digital Reporting Requirements (DRRs) for cross-border transactions
One of the most impactful updates in ViDA is the requirement for near-real-time digital reporting of cross-border transaction data.
Starting in 2030, taxpayers engaging in cross-border transactions within the EU must report invoice data electronically following the EN format. Such DRR will be a condition for taxpayers to exempt VAT in a cross-border transaction or claim input VAT. Each Member State will provide electronic mechanisms for submitting this data.
With ViDA, cross-border e-invoices within the EU must be issued in up to 10 days after the chargeable event. In these cases, DRR must happen at the same time the e-invoice is issued or should have been issued.
Invoices issued by the recipient on behalf of the seller (known as self-billing) and the invoices related to intra-community acquisitions must be reported no later than five days after the invoice is issued or should have been issued or received, respectively.
As expected, DRRs may be carried out by the taxpayers themselves or outsourced to a third party on their behalf.
Digital Reporting Requirements for domestic transactions
ViDA grants Member States the option to mandate digital reporting for domestic B2B/B2C sales, purchase data, and self-supplies for VAT-registered taxpayers within their jurisdiction. Domestic reporting requirements must align with ViDA’s cross-border DRR standards, and Member States must permit submissions in the European standard format, although other interoperable formats may be allowed.
For Member States with domestic real-time reporting systems in place as of 1 January 2024, compliance with ViDA’s standards will be required by 2035. On the other hand, the proposal clarifies that other reporting obligations, such as SAF-T, can still exist. This alignment will ensure consistency across the EU in preparation for full ViDA implementation.
Member States have until 30 June 2030 to integrate ViDA’s e-invoicing and DRR provisions into their national legislation, making the Directive effective across the EU by 1 July 2030.
ViDA’s impact on businesses
The ViDA proposal represents a significant shift for businesses operating within the EU, promising both opportunities and challenges. By introducing DRRs, ViDA aims to replace obsolete requirements, reduce administrative burdens, improve accuracy, and combat VAT fraud.
The move towards structured e-invoicing and near-real-time digital reporting will require businesses to update their invoicing and reporting systems, driving digital transformation across sectors. While the transition may entail initial adjustments, it is expected to increase efficiency, create a level playing field, and facilitate smoother interoperability between companies using different systems.
Peppol E-invoicing explained: What it is and how it works
The global adoption of electronic invoicing is accelerating. Governments worldwide are pushing to adopt e-invoicing to digitally transform their national systems and, often, to close the VAT gap.
While many countries have introduced their own e-invoicing mandate to digitise fiscal controls, the requirements and systems implemented by each country often fail to align with one another. This makes it complex for multinational organisations to meet their electronic invoicing obligations.
To enhance interoperability, countries across Asia and Europe are embracing Peppol, a framework established to simplify interoperability for e-invoicing and other procurement documents. But what exactly is it? This blog has all the information you need.
What is Peppol?
Peppol began in 2008 as an effort to standardise public procurement in governments across the European Union. It is a framework made up of specifications that enable cross-border electronic procurement and a method of sending invoices to customers. Peppol integrates business processes by standardising the way information is structured and exchanged.
In recent years, Peppol has expanded its remit to include APAC. Singapore was the first Asian country to establish a Peppol authority. As well as being established in Europe, it also includes Australia, Japan, Malaysia and New Zealand.
What does it stand for?
Peppol is short for Pan-European Public Procurement On-Line, as it was initially a European initiative.
While receiving e-invoices has been mandated by law for all public sector entities in the EU since April 2020, being Peppol one of the options chosen by many countries to implement such obligation, and Peppol’s name derives from its European service, the standard is now being adopted outside of the union. Malaysia and Singapore are two non-European countries that have embraced Peppol in recent years, for example.
How does Peppol work?
While we have made it clear that Peppol is an EU-wide standard for exchanging electronic documents like e-invoices, that doesn’t explain how it actually works.
The European Union laid out standards for electronic invoices. These documents must meet the required specifications and, in most cases, be sent through its network. Most public sector entities in the EU are required to be able to receive such invoices, creating a uniform and universal method of invoicing B2G transactions across the region.
It’s worth noting that while the public sector is obligated to receive these invoices in some cases, they can also be sent to companies for B2B transactions. Peppol enables the efficient electronic exchange of e-invoices, purchase orders, and other business documents, whether you are a private business or a public organization.
Peppol invoices are sent to the recipient through a Peppol Access Point. This connects to the Peppol network and comes from an approved service provider, allowing businesses to electronically exchange documents with other organisations with an Access Point.
Peppol connects organisations through a network of Peppol-accredited Service Providers, removing barriers to electronic trading created by closed ‘three-corner’ networks.
What is a Peppol authority?
To ensure that the aforementioned Access Points follow the rules and regulations set out, it has official authorities. They are also in place to “set national requirements for the design and content of Peppol documents,” according to PEPPOL itself.
There are currently 17 Peppol Authorities in place, all of which are national bodies – bar one. OpenPeppol is the only authority which is not attached to a country as it serves as the official Peppol Authority in jurisdictions where no authority exists.
Why use it?
Its widespread implementation makes it an appealing option for many. Considering the variety of approaches to electronic invoicing across countries, the appeal to Peppol is the standardisation and interoperability of global electronic document exchange.
Having a collection of common standards for transferring electronic documents for every country an organisation conducts business in makes the process simpler – thus reducing the possibility of errors.
Standardising the way information is structured and exchanged makes it more secure. As well as invoices and purchase orders, Peppol has the potential to automate the exchange of any kind of business document, between any organisation, anywhere in the world.
Which countries use Peppol?
Peppol currently has 37 member countries, 29 of which of which are in Europe.
Outside of Europe, countries that have implemented Peppol standards include:
Australia
Japan
Malaysia
New Zealand
Singapore
Peppol Corner Models
Corner models are frameworks for digital transactions. There are multiple approaches, though Peppol’s base framework is the 4-corner model
3-Corner model for e-invoicing
Now considered an old model, the 3-corner model for e-invoicing required senders and receivers to connect through a single service provider. Buyers would often decide on which service provider they use, meaning suppliers had to use multiple systems across their customers.
4-Corner model for e-invoicing
An upgrade to the previous approach, the 4-corner e-invoicing model connects four entities. The four corners are:
Sender
Sender’s Access Point
Recipient’s Access Point
Recipient
The introduction of Access Points secures transactions by ensuring that communication of documents is sent and received correctly, using document validation, Know Your Customer (KYC) procedures and more.
5-Corner model for CTC
As seen in Singapore, Peppol also has a 5-corner model. This approach adds another corner to the traditional model, being the Tax Authority/Government central platform. This framework is also known as Peppol CTC.
The 5-corner model allows tax authorities to receive almost real-time access to invoices, ensuring that tax information is transferred correctly.
At the discretion of the applicable government, the central platform can either validate documents before they are sent to the recipient or allow certified service providers to validate them instead, serving as a repository for the electronic invoices.
Peppol VIDA pilot project
This pilot project established by OpenPeppol demonstrates that the network and e-invoicing specifications can also be used to meet the digital reporting requirements of the EU’s VIDA proposal.
The project is open to EU Tax Authorities/Administrations, Service Providers and end users.
Sovos is participating in this pilot project. We are a respected member, serving as a provider in both Malaysia and Singapore.
Learn more about the adoption of electronic invoicing and its many rules and regulations in our E-invoicing Guide. For help complying with e-invoicing requirements and other tax considerations, consider our Compliance Cloud solution.
By Christiaan Van Der Valk
The French tax administration has just announced structural changes to the 2026 French e-invoicing mandate that will discontinue the development of the free state-operated invoice exchange service. This decision will put increased pressure on taxpayers and software vendors to select a certified ‘PDP’ to fill the void created by this decision.
A complex scheme, years in the making
When France introduced mandatory business-to-business e-invoicing in its 2020 Finance Law, the tax administration conducted a broad comparative study of how other countries had implemented similar obligations. However, France adopted a unique approach, creating the complex ‘Y model,’ which combined elements from several countries’ systems. Like Italy for example, it included a central state-operated platform (the ‘PPF’) that businesses could use as a free, basic service for the exchange and reporting of e-invoices.
Division of labor between PDPs and the PPF in the original ‘Y-scheme’ design
In parallel with the PPF’s own ability to exchange e-invoices for French taxpayer, the French tax authority solicited candidate PDPs to perform the same function for more complex business use cases.
These organizations were registered, put through vigorous testing and some were pre-approved, pending final testing with the PPF. PDPs are designed to seamlessly exchange invoices with each other and are required to report these transactions to the PPF.
And as it turned out, many companies in the French market decided to use a PDP to organize the exchange of invoice data with trading partners in a way that fits their unique business circumstances. Other French businesses counted on the availability of the free-of-charge PDP services to be provided by PPF, rather than selecting a private PDP.
The overall architecture of data flows between the public and private entities involved in the French scheme led to unprecedented complexity in the technical specifications released by the public administration. It has been clear for some time that this complexity was putting strain of budgets and timelines for the technical development of the PPF by the French public administration.
How does the PPF’s scope change impact businesses that were relying on the free PFF?
The French tax administration (DG-FIP) announced on 15 October that while the development of the PPF will continue, its focus will shift to providing directory services for routing e-invoices, without offering PDP services.
As a result, many French businesses and software vendors now face the challenge of securing the services of a private PDP. Although the e-invoicing mandate’s go-live date on September 2026, initially applies only to the largest businesses, more than four million companies will have to rely on PDP-enabled accounting software to receive those transactions regardless of their size.
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Sovos was one of the first PDPs to be pre-authorized by the French tax authority and brings more than two decades of experience providing compliance technology for businesses in France. Sovos is uniquely positioned to meet the needs of companies that must now choose a reliable provider.
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