A major consequence of globalization. This is how we could quickly and directly define the reason why PEPPOL was created, a term that is increasingly heard when talking about secure and agile online invoicing. In today's world, where communication is global and information and data are transmitted from one end of the world to the other in a matter of seconds, it is essential that this is done securely. For this reason, the creation and implementation of standards such as PEPPOL represents a step forward and a guarantee of communication for any agent involved in the electronic management of any financial accounting process. Welcome to the new digital age.
PEPPOL: What is it and what is it for?
Firstly, it is best to define PEPPOL, what it is specifically, and everything that it encompasses as a concept. The word is an acronym for Pan-European Public Procurement Online and, according to its own website, "it is not an e-procurement platform, but rather provides a set of technical specifications that can be implemented in existing e-procurement solutions and e-business exchange services to make them interoperable between disparate systems across Europe."
Put simply, it could be defined as a security standard that, through open-source software and a series of technical specifications, enables secure online communication and invoicing between the various agents attached to the network. Initially, it was conceived as a network to provide security for cross-border sales between businesses and administrations (B2G) at the European level. However, PEPPOL is now also used to manage processes between businesses (B2B) and even between administrations and customers (G2C). In other words, it has also become a guarantee for international trade.
Invoices, catalogs, electronic delivery notes... Any type of document is transferred via a network with a single common entry point for agents. That is the main difference between the traditional system that was used before, EDI, and PEPPOL, which is not based on individual contracts between each supplier and the administration, but uses a common network for everyone.
How does the Peppol network work?
PEPPOL was initially structured through a series of multilateral agreements that emerged between 2008 and 2012, while the project itself was developed under the supervision of the European Commission. Upon completion of the project and given its success, the international non-profit association OpenPEPPOL was created, which is currently responsible for maintaining the service. To guarantee the security it boasts, the service is based on three technological principles:
- The network itself, eDelivery, connects the different systems of companies and administrations, enabling secure communication and transfer of invoices and other processes.
- The requirements and technical specifications that must be met by the documents managed through it.
- The legal and regulatory framework that the platform establishes for all its users.
In addition, as a company, in order to send electronic invoices through this system, for example, you need a connection to an access point. This access point works in the same way as those used by mobile phone service providers. Once the user has connected to the platform, they receive an ID which, after being verified by the network (which takes approximately one day), will allow them to send electronic invoices, UBL, and many other documents to participating administrations and agencies.
And how can you find out if the administration or company you want to send an electronic invoice to is part of the network? It's very easy. Just enter its name in the search engine on the platform's website and, if it is, it will appear.
easyap is also part of Peppol
It is so easy and simple that PEPPOL is no longer the only optimal and secure platform for instant online transfers between public bodies and companies. Companies like ours, easyap, among the interconnection providers we have, Peppol is one of the main ones. After verifying its reliability, we use it for transactions with institutions and other client companies. In other words, we also use it for both B2G and B2B commerce. We place our trust and the security of our transactions and financial transfers in a convenient and reliable platform that is being adopted by more and more citizens, governments, and companies.
Where is PEPPOL used?
Although the platform was developed under the auspices of the European Commission, it is now also used by companies and public institutions in countries outside the European Union. Without going any further, it can be used in countries such as Canada, Australia, the United States, New Zealand, and South Africa, in addition to those belonging to the EU.
In fact, to highlight PEPPOL's global success, it is striking to recall the case of Singapore. In this small Asian country, in order to promote international trade, particularly with European organizations and administrations, the use of the network has been incentivized by offering companies subsidies incentivized the use of the network by offering companies subsidies of up to $200.
Another example is Germany, a European economic powerhouse, where since April 2018 mandatory to use PEPPOL to send electronic invoices to any public administration. This was ruled by the National IT Planning Council, and in November 2020, they went even further, as suppliers to German federal administrations are now required by law to send invoices in electronic format.
For both businesses and individuals, dealing with government agencies has never been easy. Even less so when technology is added to the mix. Procedures and documentation that, if managed online, can cause even more problems. That is why platforms such as PEPPOL, which more and more administrations and companies such as Easyap are joining, make life easier for citizens. Citizens who, with globalization, may live thousands of miles away, but with whom, thanks to these technological advances, electronic invoicing can be managed in the most secure way in a matter of seconds.
