Does your company invoice foreign businesses or public sector organizations in Finland or elsewhere in Europe? If your business extends to these organizations or countries, you may have already encountered - or soon will - requirements and recommendations to adopt Peppol e-invoicing. Peppol is also partially in use beyond the EU and Europe.
According to the Finnish State Treasury, the large-scale implementation of Peppol offers significant benefits. In Finland alone, it is estimated to free up work hours worth up to €2.7 billion annually.
Peppol is highly valuable for businesses, as it allows them to send business-related messages that comply with international standards. Data is entered only once and then flows seamlessly through the Peppol network, supporting processes from order to payment and invoice to cash.
Peppol is related to international financial management and e-invoicing. The name stands for Pan-European Public Procurement On-Line. It is an international communication infrastructure and network that enables organizations to exchange electronic business documents securely. The foundation of the Peppol network consists of so-called Access Points, which allow different systems to communicate in a standardized way.
Unlike closed-source e-invoicing networks, such as Electronic Data Interchange (EDI), which is mainly used by large corporations, Peppol is fully open.
In invoicing, Peppol functions similarly to Finland’s domestic e-invoicing system used by operators: your responsibility is to send and receive invoices, while Heeros takes care of the background invoicing processes - simply, securely, and cost-effectively.
Only organizations can operate within the Peppol network; private individuals cannot use it.
Peppol's history dates back to 2008, when it was launched as part of a project led by the European Commission. The goal was to create a more efficient and unified method for public sector e-procurement within the EU.
In 2012, the management of the Peppol network was transferred to the OpenPeppol association, which includes both public and private sector organizations. This transition made Peppol a recognized standard, later expanding beyond Europe to countries such as Australia, Singapore, Canada, and the United States. Today, Peppol is an essential part of the financial infrastructure of many countries, with its usage and importance growing rapidly.
The OpenPeppol organization consists of a central governing body (OpenPeppol AISBL, a non-profit association registered in Belgium), national authorities (Peppol Authority, PA), and national service providers (operators that facilitate Peppol transactions).
Peppol is a network that enables the exchange of orders, invoices, logistics documents, and other business documents. The structure and data content of these documents follow predefined standards. Most importantly, the Peppol network allows organizations to send and receive e-invoices internationally.
The name Peppol is often mistakenly used to refer to the format of the documents exchanged within the network. However, the correct name for this format is Peppol BIS (Business Interoperability Specifications), which can be used both within and outside the Peppol network.
In the Peppol network, messages are sent via operators (Access Points/Service Providers). This enables organizations to exchange messages with any organization within the Peppol network. The Peppol network functions similarly to the Finnish e-invoicing system. However, in addition to e-invoices, businesses can also use Peppol to send product catalogs, orders, and other business documents through the operators.
The international Peppol network is managed by OpenPeppol, a non-profit association registered in Belgium. This association coordinates and oversees the operations and development of Peppol.
Each country has a Peppol Authority, which works alongside OpenPeppol to manage Peppol operations within its territory. The State Treasury serves as the national Peppol authority of Finland.
A common misconception is that Peppol operates the same way in every country. In reality, operational, technical, and security requirements vary depending on the country and its regulations.
📌 On April 1, 2024, the Finnish government adopted Peppol-based electronic ordering for state procurement. Initially, this applies to framework agreements, but by 2026, all new procurement contracts will be required to use Peppol.
Peppol messages are transmitted through operators (Access Points/Service Providers). These operators are registered and certified to operate within the Peppol network. They can be identified by the following logo:
The actual users of Peppol are organizations that send and receive Peppol messages.
E-invoicing is an essential part of business digitalization. Sending invoices electronically is faster, more cost-effective, and more reliable than sending PDF invoices via email. Additionally, e-invoicing provides a digital audit trail, making it easy to verify whether an invoice has been delivered successfully.
In Finland, businesses can send invoices in the Peppol-compliant format. Most Finnish e-invoicing operators can convert Peppol invoices into the national Finvoice and TEAPPSXML formats. Similarly, Finnish e-invoices can be easily adapted to meet Peppol standards.
Finland has its own e-invoicing standards (Finvoice and TEAPPSXML) because the country began developing e-invoicing early in the 2000s, ahead of many other nations. This early development led to the creation of national standards. Finland's e-invoicing model is decentralized, similar to Peppol.
For companies operating internationally, billing via Peppol is a smart choice, as it has become a widely accepted and established method for exchanging e-invoices. In addition to the public sector, many private companies also prefer e-invoicing, with Peppol increasingly becoming their go-to solution.
Peppol is evolving into a truly global community and platform, continuously expanding its reach. Japan, for instance, is currently developing Peppol-based e-invoicing. At present, Peppol is used in over 30 European countries, as well as in Australia, Canada, New Zealand, Singapore, South Africa, and the USA.
Although Peppol is a standardized system, some country-specific differences may exist, particularly in terms of data content requirements. You can stay updated on European e-invoicing requirements through our website, and our experts are always available to help.
📚 Getting started with international e-invoicing: terms, practices, and tips
Interested in e-invoicing? If your company wants to receive Peppol invoices, you can register for free in the Peppol network. This ensures that incoming invoices are routed correctly to the intended recipient. Additionally, your company’s ability to receive Peppol invoices will be added to the Peppol Directory.
Sending e-invoices to companies in the Peppol network does not require registration. You can find the e-invoicing addresses of Peppol-registered companies in the Peppol Directory.
As a Heeros customer, getting started with Peppol invoicing is simple. Just submit a support request to Heeros for Peppol activation, and we will handle the rest. Peppol capabilities will be activated through our partner, and necessary Peppol details will be added to your invoicing settings. Additionally, we will ensure that your invoices comply with Peppol’s data requirements.
For more information, contact your Heeros contact person or get in touch if you're not yet a customer.
With Heeros, you can access a full suite of financial management software and integrations needed to digitalize purchase and sales invoicing across multiple markets.
The implementation of Peppol offers numerous advantages for businesses and public organizations:
Standardized process: seamless exchange of e-invoices and other business documents internationally.
Efficiency: enables fast and cost-effective document processing.
Fewer errors: reduces manual processing errors, improving overall reliability.
Wide compatibility: easily integrates with various financial management systems.
Global reach: supports business expansion and simplifies international trade.
Peppol is short for Pan-European Public Procurement On-line. Peppol is a network used by various entities for sending and receiving electronic documents, with e-invoicing being the most common example. In addition to invoices, Peppol also supports electronic order messages.
Peppol Authority is a national entity responsible for coordinating and managing Peppol within its own country. In Finland, the Peppol Authority is the State Treasury (Valtiokonttori).
Access Point is a certified connection point that allows organizations to join the Peppol network. Access Points are managed by Peppol Service Providers, typically third-party operators. Once connected, organizations can send and receive electronic business documents across Peppol users in different countries.
Peppol BIS (Business Interoperability Specifications) is an XML file format that defines the standards and practices for electronic business document exchange within Peppol, ensuring consistent and smooth data transfer. Peppol BIS is based on the Universal Business Language (UBL) data model.
XML or Extensible Markup Language is a markup language standard that defines the structure of data, designed to facilitate data storage and exchange between different systems.
UBL (Universal Business Language) is the XML-based e-invoicing standard used within the Peppol network. It contains all required data elements for Peppol transactions.
Finvoice and TEAPPSXML are domestic Finnish e-invoicing standards, similar to UBL in Peppol. Finvoice and TEAPPSXML were developed in Finland, with TEAPPSXML specifically designed for large enterprises and organizations. These formats cannot be used for international invoicing, but most Finnish e-invoicing providers can convert Finvoice and TEAPPSXML invoices into UBL format required by Peppol.
eDelivery Network is a secure infrastructure that enables the standardized exchange of electronic documents between organizations using Peppol.
Peppol Directory is a public registry where you can find Peppol-registered businesses and their e-invoicing addresses (Peppol IDs). You can search for partners at peppol.org. In Finland, Peppol addresses can also be found via the TIEKE e-invoicing address registry.
Electronic invoicing is the process of sending invoices electronically instead of using PDFs or paper invoices. Within Peppol, e-invoicing is standardized, allowing for efficient cross-border transactions. In Finland, e-invoicing is already widely adopted.
OpenPeppol is the international organization that maintains and develops the Peppol network.