What is Peppol eInvoicing?
The ATO describes eInvoicing as the digital exchange of invoice information between suppliers' and buyers' software through the Peppol network. There is no PDF to print, email or scan, and the buyer does not need to key or scan the invoice into its own software. Peppol uses a four-corner model, and a business connects once to trade with anyone else on the network, whichever eInvoicing-enabled software they use. The ATO states that more than 400,000 Australian businesses are on the network. Accredited Peppol service providers, called access points, carry the documents between the two businesses.
- Corner 1: the supplier creates the eInvoice in its business software.
- Corner 2: the supplier's access point validates it, looks up the buyer's address and sends it.
- Corner 3: the buyer's access point receives and validates it.
- Corner 4: the buyer receives the eInvoice in its business software.
Who runs Peppol in Australia?
Peppol is an international eProcurement framework maintained by OpenPeppol, a non-profit association. In 2019 the Australian Government established the Australian Peppol Authority within the ATO. In that role the ATO defines Australian requirements for using the Peppol standards, including the Australian and New Zealand invoice specification, which supports GST and is designed so eInvoices are valid tax invoices. It also accredits Peppol service providers and works with software providers on consistent implementation. The ATO states that it does not receive a copy of eInvoices and cannot view their contents.
Is eInvoicing mandatory for my business?
The firm requirements published by the ATO apply to government. Non-corporate Commonwealth entities are making eInvoicing the default, with transitional targets to reach 30% of invoices received as eInvoices by 1 July 2026 and to enable automated processing and sending of eInvoices by December 2026. Since 1 July 2022, Australian Government agencies that receive eInvoices must pay them within 5 days, regardless of value. For businesses, the ATO describes eInvoicing as not a compliance or revenue measure, and the ATO pages reviewed for this guide in October 2026 set no requirement for businesses to send eInvoices to each other. If you supply Commonwealth agencies, eInvoicing can affect how quickly you are paid.
How does an eInvoice change accounts payable automation?
With PDF invoices, the first stage of an automated workflow reads the document with OCR or AI extraction and then checks every extracted value. An eInvoice arrives as structured data created by the supplier's software, so that stage disappears and the field values do not need to be read from an image. The rest of the workflow stays. The government lists disrupting payment redirection scams among its reasons for adopting eInvoicing, but your own controls on bank detail changes still apply to every channel.
- Matching the supplier to your supplier record.
- Matching to purchase orders and goods receipts.
- Coding, tax treatment and approval rules.
- Duplicate checks across email and Peppol channels.
- Payment release and bank detail verification.
How do you start sending and receiving eInvoices?
The ATO lists three ways to register on the Peppol network: through existing eInvoicing Ready software, through an eInvoicing service provider, or through a free or low-cost online solution listed on the eInvoicing Ready product register. Many small business accounting packages already offer eInvoicing, sometimes within the existing subscription. Make sure customer and supplier records hold an ABN; the ATO lists capturing customers' ABNs as part of preparing for eInvoicing. The Peppol Directory shows which trading partners can already receive eInvoices, and some software runs that lookup automatically.
Which trading partners should move first?
The ATO suggests starting with a small number of trading partners and then moving progressively to those with the most benefit, such as high-volume suppliers or those whose invoices often contain errors. Before you start, review how many invoices you send and receive, whether you use purchase orders, who your top trading partners are by invoice count, and what changes your scanning tools and workflows need. Keep the PDF path running for everyone not yet on the network. For record keeping, the ATO treats an eInvoice like any other digital record.
What should the automation do when both channels are live?
During the transition, the same supplier may send some invoices through Peppol and others by email, and occasionally the same invoice through both. Route both channels into one queue so every invoice meets the same supplier, duplicate and approval checks. Record the channel on each bill, which shows how quickly each supplier is moving and which still need encouragement. When a supplier has sent only eInvoices for a few months, ask them to stop emailing PDFs, so staff are not handling two copies. Review the extraction rules for PDF invoices less often as their volume falls, but keep them working.