Singapore has adopted the Peppol standard as the movement’s e-invoicing framework for businesses and public entities.
Back in May 2018, Singapore announced that it would implement the Peppol e-invoicing standards. Nowadays, the applications of e-invoicing have become the new norms for all of the involved parties.
Additionally, with that announcement, the InfoComm Media Development Authority became the first national Peppol authority outside of Europe and the first in Asia, putting it well ahead of the rest of the world. The fact that it was the first one in Asia opened the door for additional nations to join the Peppol network.
Electronic invoicing is a method of requesting payment between vendors and purchasers that is completely automated. Because the procedure is automated, the transactions will be completed considerably more quickly as a result.
From the start of the supplier to the end of the buyers, the process is accurate and speedy.
How does Peppol’s invoicing work?
PEPPOL serves as the framework in this case, activating the standardized document over its exclusive network.
The participants who have joined the particular e-invoicing network can reap the solid perks offered by the PEppol framework, improving their productivity and sales more exponentially.
To join the networks, users must connect to the AP provider of their choice. An access point here is an access point. The companies will send the business documents to their official AP provider.
In this situation, the Access Point provider will conduct a review and verification of the documents using the SMP-Service Metadata Publisher-software. The ap provider will then deliver the document to the ap provider who would be receiving it. The document will be reviewed a second time at the receiving AP provider before being transmitted to the ultimate recipient.
Why is it a huge change for Singapore?
We think that it is not a new thing that the e-invoicing network can benefit in various ways for both suppliers and buyers.
That includes cost-saving, speedy payment and transactions, efficiency, lower risks of misunderstanding and errors, interoperability, and many more. The list of perks goes on since it is hard to see the flaws in the Peppol framework nowadays.
Despite the fact that Peppol had only recently arrived in Singapore three years prior, the initiation was traced back to 2008. It has been through years of war trials and tests. It is true that the tried and reliable Peppol standards have successfully handled millions of transactions throughout Europe.
Of those According to the PEPPOL standard, it is the: best framework that may be used to suit the domestic needs and requirements of Singapore’s League. It is a cost-effective and efficient technique of assuring the compatibility of multiple corporate solutions, such as enterprise resource planning (ERP) and accounting systems, as well as numerous national and international regulatory frameworks.
Since the participants have followed a particular set of standards, the methods of issuing and receiving procurement documents with others are more effective and efficient.
Who is behind the PEPPOL framework?
PEPPOL is the creation of OpenPEPPOL, a non-profit organization that has been operating since 2012.
It has a huge vision of connecting different parties to streamline e-invoices and other procurement. Back in 2017, the officials of OpenPEPPOL claimed that the Peppol network managed 60 million e-invoices.
Relationships between IMDA and PEPPOL
So, what is the relationship between IMDA as the Authority in Singapore and OpenPEPPOL?
It is necessary to register with OpenPeppol in order to be considered an authority in a certain nation… In this particular instance, IMDA and OpenPEPPOL have signed a document appointing IMDA as the national PEPPOL authority in the relevant country.
The fact that it is the 11th national Peppol authority in the network does not diminish the fact that it is the first outside of Europe and also the first in the Asia-Pacific region.
IMDA is not the new PEPPOL authority. After establishing themselves as the first in Asia and outside of Europe, a large number of parties announced their desire to become the Peppol authority in their own country. Some of them are Japan, Indonesia, Australia, New Zealand, and so on.
In the Asian market, it is pretty easy to see why a specific framework like peppol is important for businesses and government parties. By adopting the nationwide standard of electronic procurement, the national authorities in Singapore can create opportunities for both national and local businesses to step into the global market.
There has been tons of support from a lot of other countries as well. The IMDA authority sets the rules and specifications which base the common grounds on the domestic requirements. With the capabilities of the authority, they are able to certify the access point providers and metadata publishers.
Since then, the number of official providers of Peppol access points has been significantly growing for good.
To attain interoperability in B2B transactions, the AGD-Accountant General’s Department has been working together with IMDA. Both parties will also maintain and manage the activities with the government bodies that adopt the Peppol framework. It could be something new for many parties across the country. But with the advancement of internet technology, full scale adoption should be done at a faster rate.
By the time we write this article, IMDA has received a lot of positive responses from government bodies, private-sector organizations, formal associations, as well as software and technology engineering providers, to integrate or join with the Peppol e-invoicing network.
Additionally, the adoption of the Peppol set of requirements has piqued the interest of several government organizations. The MPA (Maritime and Port Authority of Singapore) and GovTech (Government Technology Agency) are the two organizations who have expressed their complete support for the initiative.
The future for Singapore businesses
With the adoption of the peppol solution, it surely means a lot of things for the businesses in Singapore.
As we know, there are various e-invoicing standards across the globe. This obscures Singapore’s standardization. Different standards can be huge problems for bodies and entities who want to interact with overseas partners. To get into the global market, one will need to agree to one global standard. Not only Singapore , other countries ‘ governments have also seen Peppol as a proper framework .
However, implementing the new e-invoices standard comes with certain challenges and takeaways that can withdraw some parties. Some parties proclaim that they are still conservative enough to maintain their own standards. Some parties have been encouraged to adopt the new culture. There were 45 public and private entities that had vouched for the Peppol framework’s adoption back in 2018. The number has been growing since then.