Peppol: What is it?A question few know how to answer. Many brands have fully internalized this term, especially large ones that carry out commercial operations with the Public Administration. However, there are still numerous companies that are not encouraged to undertake the digital transformation of their business, and others that, although they have digitized, do not fully understand its function. For this reason, and despite the fact that previously we have already talked about PEPPOL and its importance in electronic invoicing,there are still many doubts surrounding it. So, with this series of questions, we will try to clarify the concept.
What exactly is Peppol?
Specifically, PEPPOL is the English acronym for Pan-European Public Procurement OnLine.Or, that is, what literally translated into Spanish would be Pan-European Public Procurement Online. But this translation is not entirely representative, as it is too literal.
Therefore, what is PEPPOL conceptually? We could say that it is a broad set of protocols, standards, and tools that has been designed and grouped into a system that promotes the automation of public procurement processesthrough the digitization of these processes.
Following what PEPPOL dictates, any company or public administration can exchange different electronic documents securely and efficiently. Through the digitization of the business ecosystem, the efficiency and transparency of all commercial transactions are improved. Systems like this greatly assist in this.
What objectives does it pursue?
And if we talk about what PEPPOL is,after defining it, we must mention the reasons for its creation. That is, the initial objectives.In this regard, the main one, as we have mentioned, was to automate public procurement processes in Europe, although it has since expanded. However, it currently pursues others, such as:
– Facilitate the secure exchange of electronic documents.
electrónicos de manera segura.
– Make all public procurement processes more transparent, with records stored in software.
– Optimize the resources of private and public companies concerning economic costs and time dedicated to processes.
– Foster innovation throughout the business landscape.
– Help improve communication between clients and suppliers by eliminating technical barriers and communication obstacles in processes.
– Contribute, especially at the fiscal and tax level, to compliance with the regulations of the European Union and other national and regional governments concerning public procurement.
Ultimately, what PEPPOL seeks is to promote the adoption of electronic invoicing in commercial operations and thus facilitate the exchange of e-invoices between businesses and public administrations.
And what benefits does PEPPOL offer to businesses?
In this way, PEPPOL provides a series of highly interesting benefits. Many of them are of great relevance to governments (mainly traceability). However, it also offers very attractive advantages for businesses. The most notable are:
Reduces economic costs
By automating processes, PEPPOL allows both companies and public administrations to reduce economic costs. These are mainly those associated with process management.
Time optimization
As with economic costs, by adhering to PEPPOL standards through software, you optimize time. This means you need to allocate fewer human and technical resources to accounting and invoicing processes and can invest them in other functions, which saves time.
Improved business efficiency
By using PEPPOL, businesses and public administrations exchange a multitude of electronic documents securely and efficiently. As a result, this reduces the time spent on these functions and their associated costsare lower, and your business’s efficiency is much higher.
Greater Transparency Between Businesses and with Relevant Administrations
PEPPOL improves process transparency. Therefore, another key benefit it offers is that traceability is much more convenientand, for competent authorities, they can conduct a much more agile and convenient audit.
Increased Competition
By eliminating so many technical barriers to interaction between buyers and suppliers, PEPPOL offers SMEs, micro-enterprises, or newly established companies the opportunity to compete in marketsthat were previously unattainable. Consequently, market competition is much greater.
Aids Legal Compliance
As we have mentioned, PEPPOL aligns with the laws and regulations of the European Union and other governments regarding public procurement. For all these reasons, businesses and administrations find it much easier to comply with established regulationsregarding taxes and at a fiscal level.
Promotes E-invoicing Adoption
PEPPOL incentivizes the use of electronic invoicing. Software adapted to it facilitates the exchange of electronic invoices between businesses and public administrations. In this regard, greater efficiency in payment processes is also achieved.
Who Manages PEPPOL?
Regarding its origin and creation, in the year 2008, PEPPOL was launched,which was developed by the OpenPEPPOL project.Currently, it is an international non-profit organizationand continues to be responsible for the development and maintenance of PEPPOL specifications.
What is now known as the PEPPOL Association, which manages it, is composed of members from both public and private sectors. It aims to promote and guarantee security in the interoperability of public procurement operations and in B2B environments.
It’s also worth remembering that in 2008, the European Commission was the driving force behind PEPPOL’s launch. Its primary objective was to improve the efficiency and transparency of public procurement processes in Europe. How? By mandating the use of e-invoicing.
However, the OpenPEPPOL project involved various stakeholders. In other words, participants throughout the process included private companies, national governments, and sectoral organizations and associations from several European countries.
How does PEPPOL technically work?
As we mentioned when defining what PEPPOL is, it’s a set of standards, protocols, and tools. Now, how does it technically operate? To operate, it relies on four pillars: standards, identification, infrastructure, and security.
– Standards. It uses a set of open standards for the exchange of electronic documents. These include the document format known as OASIS UBL, the AS4 transport protocol, and the PEPPOL BIS service access protocol.
– Identification. It uses unique identifiers for each company and each public administration. This way, the privacy of the data exchanged in each operation is guaranteed.
– Infrastructure. It utilizes a cloud-based network infrastructure to connect administrations and businesses. This infrastructure has access points (commonly called Access Points, also in Spanish) responsible for delivering electronic documents.
– Security. It employs digital certificates and standard security protocols, also to ensure the security of operations.
Is it only used in Europe? In which countries is it currently used?
Another question that arises when we ask what PEPPOL is, is whether it is only used in Europe. The acronym refers to this precisely, as it includes the term Pan-European. Furthermore, as we have mentioned, it was promoted by the European Commission. Therefore, you might think that its application is carried out only between governments and companies belonging to the EU.
However, PEPPOL today is fully international.. It is currently applied in other countries outside of Europe. Specifically, it is well-established in the vast majority of European Union countries. For example, in addition to Spain, we are talking about nations such as Norway, Denmark, United Kingdom, Netherlands, Portugal, Italy, or Greece. But it is also being implemented in others such as Australia, New Zealand, and Singapore.
At easyap, we adapt to your needs and PEPPOL requirements
To conclude, we wanted to mention that with the solution we developed at easyap you and your business will also be able to work comfortably and in accordance with PEPPOL’s requirements. Moreover, there are no obstacles related to your industry, country, or business volume.
Firstly, you should know that we have experience in multiple markets and fields. From automotive and distribution to the financial world and banking, including telecommunications, marketing, and tourism, among others.
Secondly, you should know that in the more than 20 years of experience we have accumulated, we have carried out projects around the world. There are companies in Spain, Europe, America, and North Africa that work daily with easyap.
Finally, we adapt to various company sizes because with our solution, you will pay per invoice and not a fixed recurring amount.Thus, you will have a variable cost instead of having to pay a fixed amount that does not align with your economic standards.
Do you still have more questions about PEPPOL, what it is and how it works or about our digital solution? At easyap, we offer you several contact channels through which you can share all your questions, get to know us, and discuss any matter regarding accounting and your business.
