What is Peppol invoicing?
3 minute read
Peppol e-invoicing (electronic invoicing) is the process of sending an invoice digitally. With this service, you can send an invoice digitally between the accounting systems of business suppliers and buyers.
Contrary to sending a PDF file or online invoice through email, the invoice is automatically sent to a buyer’s accounting system using a secure network. Manual handling of invoices is, therefore, not necessary.
Thanks to an international standard that synchronises the two ends, Peppol e-invoicing also works even if the two accounting systems are different.
You can now get SGD $200 off through E-invoicing Registration Grant (ERG). Continue reading the article to find out more.
What are the benefits of using e-invoicing in Singapore?
- The first and a really important benefit of using this e-invoicing service in Singapore is that there is no chance for your invoices to get lost in the mail. E-invoicing ensures that invoices are sent and received directly to the other party’s accounting system. The chance to lose an invoice is practically non-existent.
- Additionally, the online accounting software helps with administrative tasks.
- Finally, the most important benefit to the vast majority of companies — getting paid more quickly. By making it easy for customers to pay your company by using e-invoicing (and issuing invoices), your company gets paid faster.
Frequently asked questions
Despite the obvious benefits of Peppol, there are some uncertainties among the Singaporean user-base regarding using this system. Below you will have a chance to see answers to the most commonly asked questions.
Since Peppol is European-based, can it work in Singapore?
Peppol only originates from Europe. It works in Singapore and it is being adopted in several markets besides the European market. In fact, more than 30 countries use Peppol across all continents.
Does e-invoicing mean online invoicing?
Actually, there is a difference. Online invoicing refers to either a scanned copy of the invoice or a PDF file sent to the recipient by email.
The whole process relies on manual data entry, while e-invoicing means that an invoice is created digitally in a supplier’s financial system. Then, it is electronically transmitted through the Peppol network to the recipient, where it is processed without any human touch.
Is e-invoicing free and how can you sign up for it?
If you are a Sleek accounting customer, e-invoicing comes with no additional charges!
Regarding signing up for e-invoicing, the only thing you need is a Xero subscription that you will already have if you are a Sleek accounting customer. You can follow the instructions here.
Do I need to register on Peppol even if I am receiving e-invoices but not sending it?
It is necessary to register on the Peppol network in order to receive e-invoices from suppliers/vendors.
Is e-invoicing safe?
Saying that it is safe would be an understatement. The security and integrity of the data exchanged through the Peppol network is fantastic thanks to encrypted transport that uses SSL and also a Public Key Infrastructure (PKI).
This kind of practice ensures that only parties with valid digital certificates can communicate on the Peppol network.
Can IRAS access my e-invoices?
No, IRAS cannot access invoices under current law regulations. However, you still have to comply with any applicable IRAS tax regulations.
How can you get $200 off through the ERG grant?
The Infocomm Media Development Authority (IMDA, Singapore) released a statement where they introduced the E-Invoicing Registration Grant that grants businesses a one-time payment of $200 upon first registration to the Peppol network.
To get this amount of money, you need to:
- Ensure that your business is incorporated on or before 25 March 2020.
- It is then necessary to sign up for Xero’s Peppol-ready online accounting software.
- Once that is done, you need to register your business on the Peppol network before 31 December 2020 and that is it!
Follow these instructions and receive a one-time payment of SS$200 (per UEN) from IMDA.