What is Peppol? What German software vendors need to know

1. What is Peppol?
Established in 2008 by the European Commission, Peppol is the world’s most popular and reliable network for e-invoicing transmission. In Germany, Peppol offers significant advantages over other permitted methods in terms of security, reliability, efficiency and cross-border compatibility.
Let’s dive into Peppol’s multiple benefits:
Peppol security
Peppol’s open e-delivery network is a highly secured system which can only be accessed by registered users via certified access points. Documents sent via Peppol cannot be intercepted.
Peppol reliability
While Germany permits e-invoices to be sent as XML files via email, emails always risk falling into spam or being rejected by recipient servers. Because both ends of a Peppol transmission are pre-approved, and e-invoices are validated before transmission, Peppol delivers every time.
Peppol efficiency
The data contained in e-invoices sent via Peppol is fed directly into recipients’ accounts payable systems, ready for automatic processing. No manual transposing or handling is required. This is a unique advantage Peppol has over every other e-invoice delivery method permitted in Germany. NOTE: the condition for this is that the receiving software is integrated with the receiving access point.
Peppol interoperability – domestic and cross-border
Peppol provides a common infrastructure and standards which are approved for the majority of e-invoicing mandates, within and beyond the EU. It is therefore the most reliable choice for any business that operates internationally.
2. How does Peppol work?
Peppol standardises how information is structured and exchanged, thereby achieving consistency and compatibility across all participating entities.
Peppol operates on a decentralised interconnected network using a four-corner model, where participants connect into via certified Peppol access points. Each participant is identified through their Peppol ID.
Peppol BIS (Business Interoperability Specifications) enable organisations to exchange information electronically, while ensuring compliance with legal and business processing requirements around the world.
3. What are the Peppol formats?
Peppol is a structured data network, not a general file transfer system. As such, Peppol only transports standardised, structured, XML-based electronic business documents. Peppol does not support:
- PDFs
- Scanned invoices
- Unstructured email attachments
- Arbitrary XML formats
- ZUGFeRD/FacturX hybrid PDF/XML files (unless converted into BIS/PINT XML)
Peppol BIS 3.x (Europefocused standard)
Peppol BIS 3.x is the core family of formats used in Germany and across the EU for einvoicing and eprocurement. Common documents include:
- Peppol BIS Billing 3.0 (einvoice & credit note)
- Peppol BIS Order
- Peppol BIS Order Response
- Peppol BIS Despatch Advice
- Peppol BIS Catalogue
- Peppol BIS Message Level Response
4. What is a Peppol Access Point
A Peppol Access Point is a gateway into the Peppol e-delivery network which enables various parties to send and receive documents via its four-corner model. Once connected into Peppol via an Access Point, organisations can securely exchange standardised electronic documents with any other participant who is also connected into the network.
5. Should I become a Peppol Access Point Provider
Peppol Access Point Providers are organisations that are certified to operate a Peppol Access Point, which can be used by their clients to connect to the Peppol network.
A Peppol Access Point Provider
- helps businesses register on the Peppol network and obtain their unique ID
- ensures documents are transmitted securely and conform to Peppol standards (including syntax and formatting rules)
- verifies sender and recipient identities to prevent fraud and unauthorised network access
- handles the complexities of different systems and document formats behind the scenes to ensure interoperability
- handles routing and ensures each document reaches the recipient’s Access Point correctly
- maintains the Peppol Access Point certification
While software companies can choose to become a Peppol Access Point Provider by building and maintaining their own access point, this is a cumbersome burden which is better left to others. Software companies can achieve all the advantages of Peppol connectivity for their clients, without having to invest in developing, certifying and maintaining the Access Point, simply by partnering with a certified Peppol Access Point Provider. This saves significant amounts of time, money and resources which can go into delivering the core services a software company specialises in.
By partnering with a Peppol Access Point Provider, a software company can get their clients up and running in a very short period of time – typically a couple of weeks for advanced API integration with ERP systems, or just a few days for basic integration via a web portal.
Compare this with the three to 18 months that are required to build a compliant Peppol Access Pont from scratch. And then there’s the ongoing maintenance involving software updates, compliance with future Peppol changes and ensuring 24/7 uptime in line with Peppol’s 99.5% SLA.
In short, if you’re a software company whose core activities don’t already include maintaining a certified Peppol Access Point, the answer to “Should I become a Peppol Access Point Provider?” is “no”.
6. What are the benefits of Peppol for my software?
Integrating Peppol with your ERP or CRM software is hugely beneficial for keeping your customers satisfied and maintaining a competitive edge. Why? For one thing, you’ll be providing your customers with a more secure, reliable and efficient way of sending documents. For another, you’ll already have a compliant solution ready to go when Germany’s B2B e-invoicing mandates come into force.