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Australia eInvoicing Guide

the Australian eInvoicing. The guide covers: the eInvoicing framework (the "Peppol network") — the eInvoicing is the "electronic exchange of the invoices" between the suppliers and the buyers through the "Peppol network" (the "Pan-European Public Procurement On-Line" — the "international standard for the eInvoicing"); the Peppol network connects the "access points" (the "service providers" that enable the eInvoicing) and uses the "standardised format" (the "Peppol BIS 3.0" format) for the invoice data; the eInvoicing replaces the "paper invoices, the PDF invoices and the email invoices" with the "direct machine-to-machine exchange" through the secure network; the benefits of the eInvoicing (the "advantages for the businesses") — the eInvoicing provides the following benefits: (a) the "faster payment" (the "invoices are delivered instantly" — the "no postal delays or the email errors"), (b) the "lower processing costs" (the "reduced manual data entry" — the "automatic reconciliation" in the accounting software), (c) the "reduced errors" (the "no manual keying errors" — the "standardised data format"), (d) the "improved cash flow" (the "faster invoice delivery leads to the faster payment"), (e) the "secure delivery" (the "encrypted network" — the "no phishing or the invoice fraud through the email"); the adoption for the businesses (the "how to start the eInvoicing") — the business can start the eInvoicing by: (a) choosing the "eInvoicing provider" (the "Peppol access point" — the "13 approved providers in Australia" including the "Xero, the MYOB, the QuickBooks, the Wave, the ixxus"), (b) registering the "business details" with the provider (the "ABN, the legal name, the address"), (c) enabling the "eInvoicing in the accounting software" (the "Xero, the MYOB, the QuickBooks" — the "native eInvoicing support"), (d) requesting the "trading partners" to use the eInvoicing (the "suppliers and the customers" on the Peppol network).

eInvoicing for the Government

  • Government mandate: The Australian Government has mandated the eInvoicing for the "all Commonwealth agencies" from the "1 July 2022". The government agencies must accept the eInvoices through the Peppol network. The "suppliers to the government" (the "businesses selling to the government") can benefit from the faster payment through the eInvoicing.
  • State government adoption: The "state and the territory governments" (the "NSW, the Victoria, the Queensland, the South Australia, the Western Australia") are also adopting the eInvoicing for the government procurement. The "NSW Government" requires the eInvoicing for the "all suppliers" from the "1 July 2023". The "Victorian Government" has the "eInvoicing adoption program".
  • Small business benefits: The small business can benefit from the eInvoicing through: (a) the "faster payment times" (the "reduction from the 30-day average to the 5-day average"), (b) the "reduced administrative cost" (the "estimated $10 to $20 saving per the invoice"), (c) the "improved cash flow" (the "predictable payment timing").

For the GST on the invoices and the BAS preparation, see our GST Guide →.

eInvoicing Technical Implementation

  • Access point selection: The business must select the "Peppol access point" (the "eInvoicing service provider"). The access point: (a) connects the business to the Peppol network, (b) translates the invoice data to the "Peppol BIS 3.0 format", (c) routes the invoices to the buyer's access point. The access point providers in Australia include: the "Xero, the MYOB, the QuickBooks, the ixxus, the Wave, the Invosystems, the Pagero".
  • Accounting software integration: The eInvoicing is integrated into the "accounting software" (the "Xero, the MYOB, the QuickBooks"). The business can send the invoices directly from the accounting software without the separate portal. The incoming eInvoices are automatically matched to the "purchase orders" and the "bills" in the accounting software.
  • Peppol addressing: The Peppol network uses the "Peppol ID" (the "electronic address" — the "business identifier" based on the "ABN" or the "GLN"). The Peppol ID is registered in the "Peppol directory" (the "SMP — the Service Metadata Publisher") which allows the buyers to find the suppliers on the network.

For the business registration and the ABN requirements, see our Starting a Business Guide →.