What is Peppol e-invoicing? A guide for Australian businesses
The Airwallex Editorial Team
Key takeaways
Peppol e-invoicing is a secure way to exchange structured invoices directly between accounting systems, without PDFs or email.
It's not mandatory for most Australian businesses, but federal government agencies must be able to receive e-invoices.
Airwallex Billing and Bill Pay support broader digital invoicing, approval, payment and reconciliation workflows, but Airwallex does not currently submit Peppol e-Invoices in Australia.
Peppol e-invoicing is a way for two accounting systems to exchange invoices directly, as structured data, without a PDF, an email or any manual data entry in between. The invoice moves from your software straight into your customer's or supplier's software, ready to process.
It's built on the Peppol framework, the global standard used across more than 100 countries. In Australia, it's not compulsory for most businesses. But it's becoming the default for dealing with the government, and it's worth understanding whether it's right for you.
What is Peppol e-invoicing?
Peppol e-invoicing is the exchange of structured, machine-readable invoice data between two accounting or finance systems over the Peppol network, rather than as a document that has to be opened, read and typed in by hand.
That's the key difference from a PDF or emailed invoice:
A PDF invoice is a document. Someone still has to open it, read it and key the details into their accounting system, which is where errors, delays and lost invoices creep in.
A Peppol e-invoice is data. It arrives in your accounting software already structured, ready for matching and approval without re-entry.
The Australian Taxation Office (ATO) is Australia's Peppol Authority, responsible for how Peppol works locally, including accrediting the service providers that connect businesses to the network.
How does Peppol e-invoicing work?
Peppol e-invoicing runs on what's known as the four-corner model: four steps that move an invoice from one business's software into another's, without either party needing to be on the same platform.
Corner 1 – Supplier creates the invoice. The supplier generates the e-invoice in their own accounting software, just as they normally would.
Corner 2 – Supplier's access point sends it. A Peppol access point (an accredited service provider, often built into accounting software) validates the invoice and routes it across the secure Peppol network.
Corner 3 – Buyer's access point receives it. The buyer's access point receives and validates the incoming invoice.
Corner 4 – Buyer receives the invoice. The invoice lands directly in the buyer's accounting software, ready for processing.
In short: your software talks to their software, with accredited access points handling the secure exchange in between – no inbox, no attachment, no manual entry.
Benefits of Peppol e-invoicing for Australian businesses
Peppol e-invoicing removes most of the manual handling that slows down paper and PDF invoicing, which shows up directly in processing time, cost and accuracy.
Faster payment cycles. Invoices land ready for approval, so there's less back-and-forth chasing missing details before payment can proceed.
Fewer errors and lost invoices. Structured data reduces manual re-keying and can help prevent errors, delays and lost invoices.
Lower processing costs. The ATO's own cost modelling¹ puts the average processing cost at A$27.67 for a PDF invoice and A$30.87 for a paper invoice, against A$9.18 for an e-invoice.
Reduced fraud and scam risk. Because invoices move through the Peppol network rather than email, eInvoicing can reduce exposure to invoice fraud and payment-redirection scams, but it does not eliminate fraud risk.
Works across borders. The Peppol network spans more than 100 countries, so the same e-invoicing setup can support both domestic and international trading partners.
Businesses handling high invoice volumes may see the most value from automated invoice processing, because manual handling costs scale with volume.
Is e-invoicing mandatory in Australia?
No – e-invoicing isn't mandatory for most Australian businesses. It remains voluntary for business-to-business transactions.
Government is where the mandate applies:
Entity type | Current requirement |
|---|---|
Australian Government agencies (non-corporate Commonwealth entities) | Must be able to receive e-invoices, a requirement in place since 1 July 2022 |
Government suppliers | Not generally mandated; suppliers may be asked to send eInvoices to the government entities they supply |
Most private businesses (B2B) | Voluntary – no legal obligation to send or receive e-invoices |
The ATO, as Australia's Peppol Authority, set a target to lift e-invoicing to 30% of all invoices received by 1 July 2026, and to enable automated sending and processing by December 2026².
PINT A-NZ is the Australia–New Zealand localisation of the Peppol International invoice specification, with GST-specific requirements. Since 15 May 2025, it has been the required format for mandated B2G eInvoices sent through the Australian and New Zealand Peppol networks; B2B eInvoicing remains voluntary, and there is no general mandated B2B format.
How to get started with Peppol e-invoicing
To get started, connect your accounting software or an add-on to an ATO-accredited Peppol service provider.
Check your accounting software first. Many platforms businesses already use, including Xero and MYOB, are Peppol-enabled or offer it as an add-on.
Use the ATO's eInvoicing Ready product register if your current software is not enabled. It lists eInvoicing-ready products and service providers that can connect your business to the network.
Register your Peppol Participant ID. This gives your business a unique address on the network so trading partners can find and send to you.
Confirm your trading partners are ready. Use the Peppol Directory to check which trading partners are registered or able to receive eInvoices before you start sending.
Larger businesses juggling higher invoice volumes and multi-layer approvals may pair Peppol readiness with AI-powered AP automation, so incoming e-invoices flow straight into an approval workflow rather than a manual queue.
Frequently asked questions
What is Peppol e-invoicing used for?
Peppol e-invoicing is used to send and receive invoices as structured data straight between accounting systems, mainly for business-to-business and business-to-government transactions. It's not used for business-to-consumer invoicing, where a regular invoice or receipt still applies.
What is an example of e-invoicing?
A supplier issues an invoice from their accounting software; it is validated and delivered through the Peppol network into the customer's accounting software. No PDF or email is needed, and the recipient can avoid re-keying the invoice data.\
What countries use Peppol?
Peppol is used across more than 100 countries, including Australia and New Zealand, and is widely used in Europe alongside broader digital VAT reforms. Adoption is also growing across Asia-Pacific, including Singapore, Malaysia and Japan.
Is Peppol free to use?
There is no single Peppol network usage price for businesses. Your accounting software or access point provider sets the applicable costs; some providers include eInvoicing in a subscription, while others charge per document or by subscription.
Sources
https://www.ato.gov.au/businesses-and-organisations/einvoicing/peppol-einvoicing-value-assessment/value-assessment-report/cost-calculations
https://www.ato.gov.au/businesses-and-organisations/einvoicing/einvoicing-for-government
https://www.ato.gov.au/businesses-and-organisations/einvoicing/about-peppol
https://www.ato.gov.au/businesses-and-organisations/einvoicing/einvoicing-for-government
https://business.gov.au/finance/payments-and-invoicing/e-invoicing
This information doesn’t take into account your objectives, financial situation, or needs. If you are a customer of Airwallex Pty Ltd (AFSL No. 487221) read the Product Disclosure Statement (PDS) for the Direct Services available here.
The Airwallex Editorial Team
Airwallex’s Editorial Team is a global collective of business finance and fintech writers based in Australia, Asia, North America, and Europe. With deep expertise spanning finance, technology, payments, startups, and SMEs, the team collaborates closely with experts, including the Airwallex Product team and industry leaders to produce this content.
