Earlier this year, Prime Minister Scott Morrison and his New Zealand counterpart, Jacinda Ardern, announced the intention to adopt the Pan-European Public Procurement Online (PEPPOL) interoperability framework for e-invoicing to increase opportunities for businesses to integrate with the global trading environment.
The consultation period has now concluded, with both countries set to develop country-specific arrangements and requirements from the feedback provided.
Research from Deloitte Access Economics has found that e-invoicing could result in economy-wide benefits of up to $28 billion over 10 years.
While e-invoicing is a broad term that gets confused with an electronic invoice like a PDF, the new solution is an automated direct exchange of invoices between the supplier’s and buyer’s software systems.
E-invoicing relies on open standards and technology solutions to exchange invoices seamlessly, without manual input. It removes the need to create paper-based or PDF invoices, scan, post or email them, or manually enter them.
“E-invoices are sent directly to a customer’s software system, even if the buyer and supplier are using different systems, as long as both systems are PEPPOL e-invoicing-enabled. This is different to emailing an invoice in PDF,” explained ATO e-invoicing director Mark Stockwell in a LinkedIn update.
“Imagine businesses being paid quicker, as the automation in preparing an invoice will reduce processing times and enable payment to be made sooner, with less chance of errors. When e-invoicing is available, you won’t have to imagine this anymore.
“While businesses will still need to apply their internal quality assurance processes, e-invoicing will provide opportunities for business owners to focus on growing their business, rather than spending time on labour-intensive and costly administrative processes.”