Peppol and e-invoicing with SPS Commerce in Germany

by | Sep 18, 2023 | E-invoicing

Peppol as a gateway to efficient business communication

Peppol stands for “Pan-European Public Procurement Online.” This international network aims to enable secure, protected, and efficient data exchange between organizations.

Peppol allows private and public sector companies to easily connect with various partners within the network, regardless of the systems or software they use.

The beauty of this international network is that once you are connected, you can exchange documents electronically with all other connected organizations—it is an open four-corner model. And as the network grows, this also explains why Peppol is popular in the B2B sector.

The Peppol eDelivery network

Peppol is the preferred (and often enforced) standard for electronic invoicing in Europe. More specifically, the preferred set of specifications (Peppol BIS). As a result, most public authorities in Europe were the first to use Peppol to receive and process electronic invoices. To do this, each authority had to select a service provider to act as an access point. From there, the authority registers its business data with the help of its service provider. Once this information has been verified, it is connected to the Peppol eDelivery Network, or Peppol Network for short.

With the increasing obligation to use electronic invoicing, more and more private companies are following the procedure described above and also joining the Peppol network.

Peppol in Germany

In Germany, Peppol is closely linked to the topic of e-invoicing. Since November 2020, all German federal states have made it mandatory to exchange invoices with public contractors using Peppol. With the introduction of mandatory e-invoicing for B2B transactions, Peppol has become even better known.

There is currently no obligation for private companies to use Peppol. However, many of them choose to do so because Peppol provides a standardized and secure way to exchange information around the world and within Germany. As a transmission channel, Peppol offers them improved speed, security, and transparency.

There is a possibility that the German government will place greater emphasis on Peppol for domestic business communication. The reason for this is the growing interest in the ViDA initiative (VAT in the digital age) and the attempt to monitor all B2B transactions in real time. Peppol could then become the European standard tool.

Peppol and mandatory e-invoicing in your company

The use of electronic invoices eliminates manual data entry, minimizing human error. In addition, invoice processing and payment are accelerated, leading to improved cash flow and business operations.

German regulations on e-invoicing stipulate the following transmission channels for e-invoices:

  • Web entry at the central invoice receipt platform ZRE
  • Upload to the ZRE
  • Email
  • Peppol.

Of all these, Peppol is the most advantageous channel for B2B transactions in the long term, as it enables a media-break-free transmission process – an important component of e-invoicing. In Germany, electronic invoices can be created in the XRechnung and ZUGFeRD formats, both of which are integrated with Peppol.

Following the integration of XRechnung requirements into the Peppol BIS Billing 3.0 standard, the two formats are considered equivalent in terms of content within Germany. This means that you can use Peppol BIS Billing 3.0 and XRechnung or ZUGFeRD interchangeably for electronic invoicing in Germany. However, it is important that you fill in all mandatory fields of an XRechnung in a Peppol invoice as well.

Since March 3, 2025, ZUGFeRD/Factur-X invoices can also be sent via Peppol. With the option of sending both XRechnung and ZUGFeRD/Factur-X via Peppol, the implementation of e-invoicing in Germany is made even easier and more future-proof. In addition, you benefit from further advantages through Peppol or electronic invoices:

  • You are always compliant with the legal requirements for electronic invoicing in Germany and other countries.
  • You optimize and streamline payment processes with suppliers.
  • You save time and resources for manual data entry and can concentrate on your core business.

E-invoicing via Peppol with SPS Commerce

SPS Commerce is a team of problem solvers, industry experts, and employees who specialize in simplifying supply chain processes. We help companies adapt and scale to the ever-changing retail industry.

We have a dedicated team in Germany that is well versed in all aspects of e-invoicing, including legal requirements and the technical aspects of seamless implementation.

With SPS Commerce, companies can confidently navigate the future of efficient financial processes. We are a certified Peppol provider in Germany and are happy to take on all compliance-related tasks for your supply chain.

Are you looking for advice or help with Peppol and e-invoicing? Then book a no-obligation consultation with us.

Aleksandra Vovchenko
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