The e-Invoicing framework
What is PEPPOL?
PEPPOL is a global standardised framework that enables businesses to exchange procurement documents electronically. To do this, PEPPOL provides and maintains artefacts and specifications to make it possible for businesses using different systems to ‘speak’ to each other.
The use of PEPPOL is governed by a multi-lateral agreement structure, owned and maintained by OpenPEPPOL.
How does it work?
The framework is made up of three key components:
- The network – 4 Corner Model
- The governance (Transport Infrastructure Agreements – TIA)
- The document specifications (you’ll find PEPPOL Mandatory Business Interoperability Specifications (v 3.0)(external link) on the PEPPOL.eu website)
The network - 4 Corner Model
The network is based on a 4-corner model, where every business and its trading partner communicate via an Access Point. Once connected, businesses and government agencies can quickly and easily reach any other trading partner on the network
Access Points (APs)
Access Points connect users to the PEPPOL network and exchange electronic documents based on the PEPPOL specifications. Buyers and suppliers can choose their preferred Access Point provider to connect to all participants already on the network.
Service Metadata Publisher (SMP)
Businesses using the framework publish their receiving capabilities (delivery addresses, business processes and document types supported, etc) using a service called a Service Metadata Publisher.
The Service Metadata Publisher is similar to an address book or business registry containing details of participants in a specific eProcurement community.
PEPPOL Service Metadata Locator (SML)
To deliver electronic documents from a sender to the correct recipient, all Access Points need to know about each other and the participants they support. To do this, PEPPOL maintains one centralised service called the Service Metadata Locator. The PEPPOL Service Metadata Locator defines which Service Metadata Publisher to use to find the delivery details of the particular PEPPOL participant.
Why use the NZBN?
Every business using the PEPPOL framework needs its own NZBN, as it’s the globally unique identifier that service providers will look for as part of the validation process. The NZBN gives certainty that the right businesses are sending and receiving the e-Invoice.
What is OpenPEPPOL?
OpenPEPPOL is a non-profit association under Belgian law and consists of both public sector and private members. The association has responsibility for the development and maintenance of the PEPPOL specifications, building blocks and its services and implementation.
The association has responsibility for the following:
- Setting the overall strategic direction for PEPPOL.
- Developing rules, policies and guidelines, and evaluating requests for change.
- Maintaining the Service Metadata Locator.
- Establishing and monitoring local PEPPOL Authorities.
- Approving PEPPOL membership applications.
- Undertaking conformance testing with Access Points.
- Facilitating cross-authority forums and working groups.
What is the New Zealand PEPPOL Authority?
OpenPEPPOL delegates authority over the use of the framework within a defined domain or jurisdiction to a local PEPPOL Authority, usually based on country or region of operation.
New Zealand (administered by the Ministry of Business, Innovation and Employment - MBIE) is a PEPPOL Authority and Australia (administered by the Australian Taxation Office) is preparing to become a PEPPOL Authority.
The responsibilities of the New Zealand PEPPOL Authority include:
- Developing arrangements and requirements for the local environment.
- Overseeing the local implementation of the PEPPOL framework.
- On-boarding service providers – incl. due diligence and security checks, and testing.
- Monitoring service provider compliance.
- Providing tools and resources to support adoption.