Australia e-invoicing update

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.

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.

B2G PEPPOL invoicing since July 2022

Australian government and its agencies have adopted Peppol e-invoicing since 1 July 2022.

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 their 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
  • e-Invoices
  • e-Catalogues
  • Message Level Responses, etc.


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) submits invoices
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.