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E-Invoicing in Australia
Last update: 2024, November 2
Summary
B2G
Not mandatory yet.
Accepted by many public entities, especially in New South Wales and South Australia, using the Peppol network.
B2B
Not mandatory yet.
Companies could soon be allowed to require any of their customers or suppliers to use e-invoicing via the Peppol network, according to the Business E-Invoicing Right (BER) initiative.
What the Law Says
B2G E-Invoicing
Although there is no official B2G e-invoicing mandate, the Australian Taxation Office (ATO) has been promoting the Peppol network for several years already in order to encourage public entities to move to electronic invoicing.
Many public administrations, especially in New South Wales and South Australia, as well as all Commonwealth agencies, accept e-invoices in Peppol BIS 3.0 format. There are also plans to upgrade to the more global PINT (Peppol INTernational) A-NZ with a deadline fixed to 2025, May 15.
Comprehensive lists of e-invoicing-enabled Australian agencies are available on the ATO website.
However, as there is no official mandate, B2G transactions are also allowed in other formats:
- Paper-based invoices
- PDF invoices with e-signature or complete audit trail
- EDI
Invoices must be archived for 5 years.
B2B E-Invoicing
Currently, domestic invoices between private companies are allowed in mutually agreed formats including ranging from paper, (unstructured) PDF, all the way to fully structured EDIFACT– and XML-based formats.
The Australian Taxation Office (ATO) also aims to encourage all businesses country-wide to move to e-invoicing via the Peppol network for B2B transactions in Peppol BIS 3.0 format. There are plans to upgrade to the more global PINT (Peppol INTernational) A-NZ format in 2024 & 2025.
Additionally, the ATO is working on the Business E-Invoicing Right (BER) initiative. The goal of the BER is to allow companies to require any of its customers or suppliers to move to e-invoicing via Peppol. This initiative aims to greatly accelerate e-invoicing adoption by enabling companies that moved to e-invoicing to fully leverage their investments. However, the Australian government still has not formally approved the BER initiative so it currently sits at a standstill.
Invoices must be archived for 5 years.
Timeline
Start of the B2G E-Invoicing Initiative
First Australian public entities start accepting e-invoices via the Peppol network
Peppol PINT A-NZ Becomes the New Standard
All B2G & B2B e-invoices exchanged via the Peppol network must adopt the PINT A-NZ format.
The former Peppol BIS 3.0 becomes deprecated.
The former Peppol BIS 3.0 becomes deprecated.
Technical Details
Peppol Network & Certification
The Australian Tax Office (ATO) aims to maximize the potential of Peppol, and many public administrations can already be reached using this network. Comprehensive lists of e-invoicing-enabled Australian agencies are available on the ATO website.
However, not all companies can freely operate on the Peppol network as a certification process for Access Points is required.
Indeed, the Peppol network revolves around a four-corner model where 2 companies who want to exchange documents (e.g. invoices) have to connect to the Peppol network each using an Access Point, usually their e-invoicing service provider. Yet, service providers who want to offer e-invoicing via Peppol to their Australian customers must pass an accreditation in order to ensure the validity & security of the solution they offer. There is a list of certified Peppol Access Points in Australia maintained by the ATO.
Peppol Company Identifier as Electronic Address
Once a company has selected its Access Point provider, they use their Australian Business Number (ABN) to identify themselves as a receiver or to find their business partners. Using the ABN ensures to correctly address a company and to make sure the invoices are sent to the proper recipient.
Peppol Invoice Format
The e-invoice must be formatted using the PINT (Peppol INTernational) A-NZ format. For the time being, it is still allowed to use the Peppol BIS 3.0 format, although this format will be progressively phased out until May 15, 2025, as published in the Australian Peppol Authority Special Requirements.
Other Methods
Peppol is the recommended e-invoicing method in Australia, but is not the only solution allowed.
As long as there is a mutual agreement between the sender and the receiver, companies are free to opt for any invoicing solution they prefer, as there is no official e-invoicing mandate in Australia.
Consequently, invoices sent on paper, PDF (with an e-signature or a business audit trail) or using EDI are also possible options.
The Invoicing Hub Word
Australia
Australia has been very active in promoting e-invoicing and made the great choice not to build its own system, platform, format, etc., but rather to use an establised industry standard: the Peppol network. This makes the move to e-invoicing much easier for all companies and avoids adding unnecessary complexity for global businesses.
However, despite its head start, Australia has remained hesitant in making e-invoicing mandatory, with the consequence that even after all those years, mass adoption is still a long way off.
The Business E-Invoicing Right (BER) initiative may finally close the gap by allowing companies to force their trading partners to transmit their invoices electronically: companies that moved to E-Invoicing will be able to leverage their investments.
This will definitely drive always more Australian businesses to implement and benefit from e-invoicing solutions.
Additional Resources
Public entity supervising e-invoicing in Australia
E-invoicing homepage & resources on the ATO website
Listings of e-invoicing enabled Australian agencies and additional resources
Peppol International (PINT) specifications for Australia & New Zealand
List of Peppol Access Points certified to operate in Australia
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