eInvoicing

For the past 18 months, we've been working with the ATO to develop Australia’s first eInvoicing Regional Hub. The regional hub will help us connect and work together to drive the implementation of eInvoicing across the Hunter. The Hunter Hub launches on July 20 in Newcastle. Find out more about eInvoicing below.

eInvoicing is the new, easy and secure way to send and receive invoices between buyers’ and suppliers’ software through the Peppol network. It is different to sending PDF invoices in your software or by email.

Using eInvoicing is like using a mobile phone service. Once you select a provider and get connected to the network, you can exchange invoices with anyone on the network, using their ABN to confirm their identity. This reduces the chance of scams or fraudulent invoices.

eInvoicing allows suppliers to easily create and securely send invoices using their software and know immediately if the invoices have been delivered successfully. This means they can quickly fix any errors that may occur and resend, saving you both time and hassle.

Buyers no longer need to manually enter or scan paper or PDF invoices into their accounting system. Invoices automatically appear in their system, ready to be reviewed, approved and paid.

To find out more about eInvoicing, visit ato.gov.au/eInvoicing.

The benefits of eInvoicing include:

  • making invoicing easy by saving you valuable time and effort
  • standardised and more accurate invoices, resulting in less mistakes to chase up and correct
  • stronger security compared with posted or emailed invoices, with eInvoices sent through the secure Peppol network
  • reduced risk of invoice fraud or scams
  • better business decisions based on correct, real-time financial information
  • automated invoicing processes, allowing for increased efficiency and productivity for businesses
  • supporting the environment by reducing your consumption of energy, storage space and printing supplies.

What makes eInvoicing possible is the Peppol standard an open network that allow invoice data to be exchanged between different software or systems.

Australia has adopted Peppol as a common standard for eInvoicing. Peppol is an international framework used in 40 countries around the world, including throughout the EU and New Zealand, Singapore and Japan in our region. By the end of March 2022, more than 31,000 businesses in Australia are using eInvoicing with more starting every day.

To start eInvoicing, your software needs to be connected to the Peppol network. Many software providers already offer eInvoicing. Products that are assessed as eInvoicing ready by the ATO may not refer to Peppol directly but they have the standard built into them. It doesn't matter which software you and your trading partners use to invoice, eInvoicing will work as long as you're both connected to the Peppol network.

The ATO is the Australian Peppol Authority and is responsible for managing the standard and the network in Australia. The ATO does not receive any information sent through the Peppol network and cannot see any eInvoicing data.

The ATO was appointed as the Australian Peppol Authority by the Government in 2019. In this role the ATO ensures that the eInvoicing standard is implemented consistently by all digital service providers in the eInvoicing network. It also ensures security protocols are followed and organisations participating as access points are trusted entities.

The ATO also promotes the key benefits of eInvoicing for businesses, such as saving time, reducing the risk of fraud and scams, improving business efficiency and driving adoption throughout the entire economy. By promoting eInvoicing and its benefits we are working with Australian businesses to help them become more efficient, more resilient, and better prepared to compete in an increasingly digitilised world.

The ATO does not receive any invoicing information. eInvoices are transmitted securely through the Peppol network directly to the recipient. Information is not made available to the ATO.

Getting started with eInvoicing is easier than you think. Depending on how you’re currently creating, sending and processing invoices, there are several options available for you.

If you’re already using software to create, send or receive invoices:

  • Check with your software provider to see if they offer eInvoicing or check the eInvoicing Ready product register to find out if your software is enabled. Many small and medium enterprise accounting software providers already have a built-in eInvoicing feature or have plans to introduce it soon and it may be available through apps that integrate with your software.
  • You can send eInvoices to any business registered on the network - all you need to do is connect your software to the network and use your buyer’s ABN as their delivery address.
  • To receive eInvoices you will need to register on the network. You can do this in your software if it is eInvoicing ready.
  • As more of your business partners switch to eInvoicing you will see greater benefits.

If your software doesn’t have eInvoicing capability:

  • Find out if your software provider is planning to offer eInvoicing.
  • If they are not, you may be able to connect your software to the network via a third-party add-on or app.
  • Visit the eInvoicing Ready product register to find an eInvoicing provider. The register is regularly updated as new products become available, including free and cost eInvoicing options.

If you don’t use software for your invoicing:

  • Consider using an eInvoicing web portal. Many service providers offer this option to support businesses that send or receive only a few eInvoices.
  • Visit the eInvoicing Ready product register to find an eInvoicing provider. The register is regularly updated as new products become available, including free and low-cost eInvoicing options.
  • Talk to your accountant, bookkeeper, or other trusted financial and business advisers about what options may be best for you and your business.
  • Visit ato.gov.au/eInvoicing for more information on how to get started.

What are the costs involved?

  • For software users, the cost will vary and depend on your software product. eInvoicing may be included in your subscription or offered as an additional feature or app.
  • For non-software users, there are free and low-cost plans available through eInvoicing service providers such as web portals. Visit the eInvoicing Ready product register to find an eInvoicing provider that suits your needs.
  • Talk to your preferred software or service provider to find out the costs.