Proposals · Glossary
What is e-invoicing?
E-invoicing is the exchange of invoices as structured data directly between the seller's and the buyer's software, without a PDF or paper copy in between. In Australia, New Zealand and much of Europe it runs over the Peppol network, so the buyer's system reads the invoice fields itself rather than someone typing them in.
An emailed PDF is electronic, but it is not an e-invoice. The difference is who reads it first: a person retyping figures, or the buyer's accounting system taking them in directly.
Indunil Asanka · Co-founder
4 min read · Published
| Method | What travels | Who reads it first | Common failure |
|---|---|---|---|
| PDF by email | A picture of the invoice inside an email | A person in accounts, who retypes or scans it | Fake invoices with changed bank details |
| Supplier portal upload | A PDF or form typed into the buyer's website | The buyer's system, after you key it in | Portal rejects a field and nobody tells you |
| E-invoice over Peppol | Structured data in a standard format | The buyer's accounting software | Your software or provider is not connected to Peppol |
What makes an invoice an e-invoice
Business.gov.au puts it plainly: e-invoices are not PDF invoices that need to be printed, posted or emailed. They are data, sent from one business's software to another's through a common standard and a secure network. The buyer's system receives fields it understands, such as supplier, line items, tax and amount due, and can match them to a purchase order without anyone retyping. E-invoicing applies to business to business and business to government invoices, not to invoices sent to consumers.
How Peppol works
Peppol is an international standard and delivery network. Each business connects through an access point, usually provided by its accounting software or a specialist provider, and is found on the network by its business identifier, such as the ABN in Australia. In Australia the ATO is the Peppol authority: it accredits the service providers and administers the network, but it cannot see the invoices themselves. New Zealand's MBIE plays the same role there, and the two countries share the framework, so an invoice can cross the Tasman the same way it moves between local businesses.
Why governments push it
Most invoice errors and a large share of invoice fraud come from the manual step: a figure typed wrongly, or an email with altered bank details that looks real. Structured data removes both. Governments are also large buyers, so they started with themselves. The European Union requires public bodies to accept e-invoices that follow its European standard, and Australian government agencies have been asked to receive e-invoices from suppliers. For small suppliers to government, sending e-invoices can mean faster payment.
What a small business needs to start
Usually only accounting software that is e-invoicing enabled. Business.gov.au suggests checking with your software provider first, since many already offer it, sometimes free or at low cost depending on volume. Then confirm the customer's identifier on the network and send a test. You do not need to change how you price or what the invoice says; the same fields simply travel as data. Customers who are not on the network still need a PDF.
Where it shows up in the product
The proposals module renders invoices to PDF on the server and sends each client a pay link that opens a public pay page with the amount due, the items, the PDF and bank details, plus Pay now through Stripe Checkout on paid plans. Export is PDF only, so it does not send Peppol e-invoices. If a government or large customer requires e-invoicing, issue that invoice from accounting software connected to the network and keep the same number and amounts.
Questions people ask
Is an emailed PDF invoice an e-invoice?
No. A PDF is an electronic copy of a paper invoice that a person still has to read. An e-invoice is structured data that the buyer's software reads directly. Both are legal ways to invoice in Australia, but only the second removes the retyping and the risk of a fake PDF with changed bank details slipping through.
Do I need an ABN to send e-invoices in Australia?
Businesses on the Australian Peppol network are generally identified by their ABN, which is how the sender's software finds the right recipient. If your business has an ABN and accounting software connected to the network, that is normally enough. Check with your software provider how they register you, since registration is handled by the accredited access point.
Can customers who are not on Peppol still receive my invoices?
Yes. E-invoicing only works when both sides are connected, so for everyone else you keep sending a PDF or a link. Most e-invoicing enabled software handles both automatically, sending an e-invoice where the customer is registered and an email where they are not, so you do not need two separate processes.
Is e-invoicing mandatory for small businesses?
Not in Australia or New Zealand at the time of writing for business to business invoices, although governments in both countries encourage it and some agencies prefer it from suppliers. Parts of Europe are moving to mandatory e-invoicing for some transactions. Check the rules for the country you invoice into, because they are changing quickly.
Does e-invoicing replace a tax invoice?
An e-invoice can be a valid tax invoice if it contains everything the tax authority requires, such as the supplier's ABN and the GST amount in Australia. The format changes, not the content rules. That is why a business moving to e-invoices should check that its software maps every required field before switching over.
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