Introducing Peppol e-invoicing: everything compliance managers must know
With mandatory online invoicing via Peppol just around the corner, verifying senders and recipients is about to become more transparent – but it requires some changes to the way compliance teams organise themselves. What is Peppol, how does it impact compliance managers, and what tools and strategies can they use to reduce the risk and workload involved in their KYC checks? Let’s dive in.
Why e-invoicing through Peppol?
Invoicing has traditionally been a weak spot in businesses’ operational security. Failing to implement proper KYC (Know Your Customer) checks in invoicing processes leaves the door wide open for misleading or outright fake invoices, money laundering schemes and VAT scams.
To address this weak link, the EU took action. Never shy of introducing another acronym, lawmakers in Brussels came up with Peppol: ‘Pan-European Public Procurement On-Line’. The name checks out: Peppol is a network that enables the secure and standardised exchange of electronic invoices between companies and public authorities across Europe and beyond. Unlike some other key compliance trends, Peppol is mandatory. As of 2030, digital invoicing will be the standard for all EU-based organisations subject to VAT. In some countries, the roll-out has already begun, and e-invoicing obligations are already in force.
Introduction of mandatory invoicing for all domestic transactions in key EU countries
| Country | Effective date |
|---|---|
| Belgium | 2026 |
| France | 2026 |
| Germany | 2028 |
| Luxembourg | 2023 |
Regulations differ and most countries are taking a staggered approach when it comes the introduction of Peppol obligations for businesses. The detailed list with e-invoicing rules for every country can be found on the EU Peppol country fact sheet page.
Explained: how does e-invoicing via Peppol work?
How exactly does Peppol work? At the heart of Peppol is a so-called interoperability framework that sets a few standards for common procurement documents, including electronic invoices and purchase orders. Technically, Peppol’s e-invoicing relies on what is known as a four-corner model. The sender and receiver of an electronic invoice are connected via an accredited service provider of their choice, which acts as an access point to the secure Peppol network. Invoices and other documents are transmitted via a secure protocol.
Before Peppol, existing e-procurement services were closed, requiring buyers and suppliers to connect to the same system or provider – hence the vastly different public procurement platforms in different countries, for example. That earlier system was inherently closed and proprietary: it’s a bit like only being able to email someone through a specific messaging platform, with no standardisation across different apps. The concept behind Peppol is compelling from a security and transparency perspective: when organisations use the same standards, they can do business in the same digital language.
3 key benefits of e-invoicing for compliance officers
E-invoicing through Peppol lays the groundwork for stronger compliance – especially when properly embedded into your existing compliance operations. Here’s a quick breakdown of three key advantages of Peppol for compliance officers:
How Harmoney helps compliance managers capitalise on Peppol e-invoicing
As a compliance manager, you’re constantly balancing strict regulations while dealing with (sometimes outdated) tools, manual work and new legal frameworks. Every mistake comes at a cost. This is where reliable and automated systems help you reduce both risks and workload. When seamlessly integrated with an end-to-end compliance platform like Harmoney, e-invoicing automates regulatory adherence, improves data accuracy and enables centralised oversight. Here’s how:
Regulatory compliance by design
Using the Harmoney platform, the structured and traceable invoice data exchanged via Peppol can automatically be validated against local tax authority requirements, minimising non-compliance risk. Documents and audit trails are automatically stored, supporting real-time checks and retroactive audits.
Automated monitoring and alerts
The Harmoney compliance engine can use Peppol invoice data to trigger alerts for anomalies related to fraudulent entities. These additional data points provide more accurate verification triggers, reducing the workload on compliance teams.
Real-time dashboarding and KPI monitoring
All structured data from electronic invoices can be fed directly into the Harmoney compliance dashboards, adding to your reporting picture.
Looking to find out more about how you can get ready for Peppol e-invoicing with an end-to-end compliance platform that gives you full peace of mind? Request your demo today.