- e-Invoicing provides a way to automate invoicing processes
- New Zealand government aims to offer 10 day payment terms for all invoices to promote use of e-Invoicing
- Australian Commonwealth and New South Wales governments to offer 5 day payment terms for e-invoices
e-Invoicing, the direct exchange of invoice data between financial systems, has now been officially launched in New Zealand and Australia by the Ministry of Business, Innovation and Employment (MBIE) and the Australian Taxation Office (ATO).
Similar with the way in which users on different mobile phone networks are able to speak to each other, e-Invoicing works through the Pan European Public Procurement Online (PEPPOL) interoperability framework. PEPPOL is currently used by over 30 countries, and both MBIE and ATO have become PEPPOL Authorities, with responsibility for overseeing New Zealand and Australia's e-Invoicing framework.
e-Invoicing provides businesses on both sides of the Tasman, regardless of size or financial management system, with a way to automate their invoicing processes, lowering processing costs and the lead time in receiving payment from customers, as well as improving financial management visibility.
"E-Invoicing offers a solution that every business can access and benefit from, regardless of their size and the financial management system they use, making it easier for businesses to interact and transact with each other, and with government."
To successfully shift to using e-Invoicing, businesses will need:
- A unique business number (either NZBN or ABN
- The unique business number of the entity which it intends to send an e-Invoice to, and
- Access to the PEPPOL framework through either a service provider or in-house solution (which can be developed internally or purchased off the shelf).
In addition, both MBIE and ATO recommend businesses perform internal governance around the shift towards e-Invoicing, including:
- Performing a current state analysis and identification, as well as assessment of costs and change impact
- Implementing and testing the proposed technical solution, and
- Discussing e-Invoicing with relevant trading partners.
To support and promote the shift towards e-Invoicing in New Zealand, the government has announced a target for government departments to pay all New Zealand invoices within 10 days by June 2020. Similarly, in Australia, Commonwealth Government agencies will start paying e-Invoices within five days (or be subject to interest on any late payments), with respect to contracts valued up to AUD 1 million where both the supplier and the Commonwealth Government agency use the PEPPOL framework.
Find out more
In addition, the ATO has provide list of e-Invoicing accredited service providersATO E-invoicing accredited provider list
The NZBN have provided a list of e-Invoicing accredited service providersNZBN e-invoicing accredited provider list