A public sector body must be able to receive and process e-invoices. Two questions matter: what counts as “being able to receive”, and which route do you set it up through? This page explains the requirements, the three routes and how to decide whether one Peppol ID is enough for your organisation.
What "being able to receive" means
“Being able to receive” means more than accepting PDF invoices by email. A public sector body must receive and process electronic invoices that comply with a recognised semantic standard. Such a standard defines what data an invoice contains and what that data means. Your systems can then read the invoice automatically.
In Europe, EN 16931 is the European standard for e-invoicing. The legal basis is Directive 2014/55/EU, adopted in 2014. It requires contracting authorities and public bodies in the EU to receive and process e-invoices that comply with the European standard. Member states transposed the directive into national law. The Netherlands and Belgium are examples, each with its own implementation.
Outside the EU, several jurisdictions have comparable requirements for public bodies to receive e-invoices in a structured format. Which obligation applies to you depends on the jurisdiction your organisation falls under. Always check this with the primary source: OpenPeppol, EUR-Lex or the competent national authority.
For more on the legal background, see Mandatory e-invoicing.
The three routes to receive
The routes do not exclude each other. Many organisations combine a receiving route with a deliberately chosen integration into the financial system.
Central government portal
Own Peppol Serviceprovider
Integration with the financial system
Addressing organisational units: one or multiple Peppol IDs
Many public sector bodies have several units, such as separate agencies, departments or locations. You then need to choose: is one central Peppol ID enough, or does each unit need its own Peppol ID?
That depends on how invoices must be routed and processed within your organisation. One central Peppol ID suits an organisation with a single central accounts payable function; internal distribution is then based on data in the invoice, such as an order number or reference. Multiple Peppol IDs suit units with their own administration, their own financial system or their own responsibility for payment: invoices then arrive directly at the right unit.
For how a Peppol ID works and how to register one, see Peppol ID.
What this means for public sector bodies
Receiving-route checklist
- Decide which route (portal, own Peppol Serviceprovider, integration) fits the size and IT capacity of your organisation
- Decide whether you need one central Peppol ID or several, per unit
- Make sure your receiving process automatically validates e-invoices against the semantic standard that applies to you
- Tell suppliers clearly which channel and format they must use to invoice you
- Planning to tender for or buy a Peppol service? Read Procuring a Peppol service for the requirements framework
For software vendors
Do you serve public sector clients? Then your software deals with different receiving routes. Some public sector clients receive through a central government portal and mainly need reliable export or forwarding to that portal. Other clients receive directly through Peppol and need support for Peppol document types, validation against the applicable standard and addressing on one or multiple Peppol IDs. Software that supports both routes can serve more public sector clients without custom work per client.
Closing and next steps
Well-organised e-invoicing comes down to three choices: the receiving route, the integration with your financial system and the addressing of your units. Once you have made those choices, the next step is buying the service. You can read more about that on the page Procuring a Peppol service. Want to see which Peppol Serviceproviders match your requirements? Use the comparison tool on peppol.nu.
