What Is PEPPOL and How Does It Relate to E-Invoicing?
PEPPOL is an international network for exchanging electronic business documents, including invoices, between companies and governments. It is not a file format but an infrastructure: a set of rules that lets any two businesses in the network exchange documents, even if they use different accounting software.
How PEPPOL works
PEPPOL uses a four-corner model. The sender submits a document to their PEPPOL Access Point provider. The Access Point looks up the recipient in the PEPPOL directory and routes the document to the recipient's Access Point, which delivers it to the recipient. Neither party needs to know each other's technical setup in advance.
PEPPOL and the German e-invoicing mandate
Germany's B2B e-invoice mandate requires companies to be able to receive structured electronic invoices from 2025 onwards. PEPPOL is one of the delivery channels that satisfies the technical requirements. Using a PEPPOL Access Point means you can receive invoices from suppliers across Europe, not just within Germany.
What you need to use PEPPOL
- A PEPPOL ID: your business's unique address on the network, typically derived from your VAT ID.
- A PEPPOL Access Point: a registered service provider that connects your software to the network. Many accounting software packages include one.
- A PEPPOL-compatible format: UBL 2.1 and CII D16B are the main formats on the network, both conforming to EN 16931.
PEPPOL vs email delivery
Sending an invoice by email as a PDF attachment is not PEPPOL and does not satisfy the structured-data requirement of the German mandate. PEPPOL delivers machine-readable XML data directly into the recipient's accounting system. Email is simpler but does not meet the mandate's requirements.
Who needs to act
German businesses billing other German businesses must be able to receive structured e-invoices from January 2025. Being able to send them is required from 2027 for turnover above 800,000 euros and from 2028 for all businesses. If your accounting software already supports PEPPOL, you are likely covered for receipt.
For the two main e-invoice formats that run over PEPPOL, see XRechnung vs ZUGFeRD.
For an overview of the mandate itself, see the German e-invoicing mandate explained.
Common questions
- What is PEPPOL in simple terms?
- PEPPOL is a network that lets businesses send electronic invoices to each other securely, regardless of which accounting software they use. It functions like an email network for structured business documents.
- Is PEPPOL mandatory in Germany?
- PEPPOL itself is not mandatory, but the German B2B e-invoice mandate requires structured electronic invoices. PEPPOL is one delivery channel that meets the technical requirements.
- How do I get a PEPPOL ID?
- Your PEPPOL ID is assigned by your Access Point provider. It is typically based on your German VAT ID (Umsatzsteuer-Identifikationsnummer). Your accounting software or e-invoicing service sets this up.
- Is PEPPOL the same as XRechnung?
- No. XRechnung is an invoice data format (how the invoice is structured); PEPPOL is a delivery network (how it is transported). An XRechnung invoice can be sent via PEPPOL, but also via other channels.