Implementation Timeline
For B2B transactions, the Australian Government has proposed making e-invoicing mandatory in several phases based on the size of the company. The timeline is as follows:
- July 1, 2023:
Large companies must be able to send electronic invoices in the PEPPOL format upon request. From this date, any business can request that their large trading partners send invoices electronically via the PEPPOL network. - July 1, 2024:
Medium-sized companies will also be required to send electronic invoices in the PEPPOL format upon request. Businesses can request their medium-sized trading partners to adopt this format starting from this date. - July 1, 2025:
All companies, regardless of size, will be obligated to exchange electronic invoices in the PEPPOL format.
While these phases outline the proposed implementation, the timeline has not yet been enforced. We are awaiting further updates from the Australian government regarding the official dates for these mandates.
October 2023: Government Commitment to Mandate PEPPOL-Based E-Invoicing
The Australian Department of Treasury has reaffirmed its commitment to advancing the adoption of PEPPOL-based e-invoicing for B2B transactions. While this system has already been implemented for B2G (Business-to-Government) transactions by 2022, the focus is now shifting towards broader business adoption.
The current plan is to introduce legislation that would give vendors the right to require their Australian-resident business customers to accept PEPPOL e-invoices. This mandate is expected to be phased in as follows:
- Year 1: Any company may require their large suppliers (those with a turnover above AUD 50 million) to provide PEPPOL e-invoices.
- Year 2: The same requirement will extend to medium-sized suppliers (with turnover between AUD 10 million and AUD 50 million).
- Year 3: The mandate will apply to all suppliers, regardless of size.
For more details on e-invoicing and real-time VAT or GST reporting requirements across various countries, you can refer to VAT Calc’s live VAT invoice transaction and e-invoice tracker.
Pan-European Public Procurement Online (PEPPOL)
PEPPOL is an international non-governmental organization that has established a standardized protocol and technical specifications for e-Procurement between governments and businesses. Originally initiated in the EU, PEPPOL has now been adopted by 38 countries.
PEPPOL facilitates the exchange of electronic invoices and other procurement documents via access points, which connect businesses to the PEPPOL network and enable seamless transactions with their trading partners. It’s important to note that PEPPOL is not a platform itself; rather, it is a set of technical specifications, standards, agreements, and onboarding processes designed to ensure efficient electronic exchange of procurement documents, such as:
- e-Orders
- e-Advance Shipping Notes
- eInvoices
- eCatalogues
- Message Level Responses, etc.
For businesses operating in Australia, VAT Calc’s real-time global Calculator and Auditor services offer instant and accurate tax calculations within your ERP, enabling live e-invoice preparation using PEPPOL standards.