Are you ready for e-invoicing in Australia?
Government bodies in Australia must now use automated e-invoicing software to send and receive e-invoices in the Peppol format – and it seems that businesses could soon be mandated to do so too.
Following the introduction of legislation that requires public administrations to use e-invoicing from 1st July 2022, the Australian government and the Business eInvoicing Right (BER) have this month announced an initiative to push for the adoption of B2B e-invoicing as soon as possible.
If approved and introduced, it would mean all companies must request trading partners send them e-invoices in the same Peppol format that has already been implemented for government transactions.
The national government has recently announced it will invest an additional AU$15.3 million in a project to increase business awareness, drive adoption and enhance the value of e-invoicing.
This funding will enable the Department of Treasury and the Australian Peppol Authority to:
- Offer education to businesses on the benefits of e-invoicing.
- Partner with payment providers to ease the integration of e-invoicing into core systems.
- Carry out pilots with large businesses to secure valuable insights.
When is e-invoicing likely to become mandatory in Australia?
Although there has not yet been any official confirmation of a start date for mandatory B2B e-invoicing, several sources have reported that the local authorities in Australia are hoping to introduce it as soon as possible.
The BER has put forward three potential implementation paths:
- From 1st July 2023: All businesses can request that large trading partners send e-invoices using Peppol.
- From 1st July 2024: All businesses would be required to receive e-invoices from medium and large trading partners.
- From 1st July 2025: All businesses would need to exchange e-invoices using Peppol.
How can businesses get ready?
The first step for businesses is to connect to the Peppol network, which can be done through existing software, a specialist e-invoicing provider or an online platform.
Once that step has been cleared, we recommend planning for a smooth transition from existing manual processes to an automated future.
This involves working with an automation expert to review the key features you will need in an e-invoicing solution and related configuration. By understanding the challenges you face, communicating with suppliers and customers in the built-up to changes and investing in suitable technology, it is possible to achieve a seamless journey to e-invoicing.