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Connection 1 of 5 · Invoices

eInvoicing and Peppol: connecting a business’s invoices

Rests on: the ATO’s eInvoicing pages, with business.gov.au’s guide to getting started.

The ATO defines eInvoicing as “the digital exchange of invoice information between suppliers’ and buyers’ software through the secure Peppol network”, and a business starts by registering on that network. The ATO’s options for registering include existing eInvoicing Ready software, an eInvoicing service provider, and a free or low cost online solution.

General information about eInvoicing, not tax or accounting advice. The ATO is the official place to check, and it suggests talking to a business adviser for help getting started.

Your softwarePeppol networkTheir software

Connection 1: invoice data travels between two businesses’ software, delivered by ATO approved service providers.

01 What an eInvoice is, and what it is not

An eInvoice is invoice data, not a picture of an invoice. business.gov.au says eInvoices are not PDF invoices to be printed, posted or emailed, and the ATO says the exchange runs between the supplier’s software and the buyer’s, through the secure Peppol network. The ATO puts the difference at both ends: “suppliers don’t need to print, post or email paper-based or PDF invoices” and “buyers don’t need to manually enter or scan invoices into their software”.

It is for invoices between businesses. business.gov.au names suppliers, contractors and government as the other side, and says eInvoicing “does not apply to business to consumer transactions”.

The two businesses don’t need the same software. business.gov.au says it doesn’t matter which software each one uses to invoice, “as long as you’re both connected to the Peppol network”.

02 Who runs the network

In 2019 the Australian Government set up the Australian Peppol Authority (APA) within the ATO. The ATO describes the APA’s role as to “govern, lead and regulate eInvoicing in Australia”, which it does by administering governance rules for digital service providers and maintaining interoperability standards.

The invoices themselves are delivered by ATO approved service providers. business.gov.au says the ATO administers the network “but can’t access or view your invoices”, and the ATO adds that eInvoicing “is not a compliance or revenue measure” and that it does not receive a copy of invoice information.

The ATO’s About eInvoicing page, last updated 7 July 2026, says a business can connect once and transact with everyone on the network, which it puts at over 400,000 Australian businesses.

03 The ways to register

To start, a business registers on the Peppol eInvoicing network. The ATO’s options include these three:

  • Existing eInvoicing Ready software

    business.gov.au says to check with the software provider whether it is enabled and, if it is, to follow the provider’s steps. If it can’t eInvoice, business.gov.au gives two routes: connect it to an add-on eInvoicing product, or buy accounting software that can eInvoice.

  • An eInvoicing service provider

    The ATO suggests talking to different eInvoicing service providers to find out how they can help a business get ready.

  • A free or low cost online solution

    Found on the eInvoicing Ready product register.

On cost, business.gov.au says most small business accounting software providers are building eInvoicing into their products, which may include free or low-cost solutions depending on how many invoices a business exchanges. It suggests asking the software provider about its costs.

A business that writes invoices by hand, on paper or in office software, is pointed by business.gov.au to the eInvoicing provider list, to accounting software that is eInvoicing enabled, or to its bookkeeper or accountant.

04 Tax invoices and records

The ATO says an invoice issued under the Peppol eInvoicing standard can meet the requirements of a tax invoice. Its page on tax invoices notes that some eInvoices may not include the words ‘Tax invoice’ or ‘GST invoice’, and sets out when such an eInvoice still counts as one intended to be a tax invoice:

“we consider that an eInvoice satisfies the requirement that the ‘document is intended to be a tax invoice’ if the eInvoice is issued by a supplier in accordance with the A-NZ Invoice Specification under the Peppol framework, and it contains all the mandatory data.”

ATO, Tax invoices, under “eInvoicing”

For record keeping, the ATO says an eInvoice is no different to other digital records, and points to its digital record keeping rules. Its digital record keeping page adds that whatever the eInvoicing software or system, the business is responsible for deciding how best to store its transaction data.

05 Planning the switch

The ATO suggests starting with a look at how invoicing works now:

  • how many invoices go out and come in, and how often;
  • how they are sent, received and processed, and whether purchase orders are used;
  • who the top suppliers and buyers are, counted by number of invoices;
  • what would need to change in the software and scanning tools used for accounts payable and receivable.

To plan the move, it lists managing the changes to the business’s own processes, telling trading partners what is coming, keeping customer records up to date (including each customer’s ABN), and encouraging trading partners to get ready too.

For bringing customers and suppliers across, the ATO suggests trying eInvoicing with a small number of them first, then adding more over time, starting with those who bring the most benefit, such as high-volume customers or suppliers, or those with a high error rate. business.gov.au adds two steps of its own: think about how current invoice processes may need to change, and talk to employees and trading partners about the changes and their benefits.

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