Dive into the world of Peppol in the context of German B2G e-invoicing. Discover how Peppol is revolutionizing electronic invoicing and the role it plays in the digital transformation of public administration.
We've talked about Peppol in previous installments of our series, but how exactly does Peppol fit into the German B2G e-invoicing landscape? In our fourth article in our series on B2G e-invoicing in Germany, we look at Peppol's role in German e-invoicing.
Peppol 101: The Basics
Peppol (Pan-European Public Procurement Online) is a secure international network through which businesses can exchange documents and data with all other network participants. Peppol operates as an open and interoperable network, meaning various devices and systems can seamlessly communicate without active user intervention. Anyone registered can utilise Peppol, enabling administrations, for example, to avoid building their own systems and instead use Peppol nationwide.
Peppol and the German B2G Transaction Landscape
Within the German B2G e-invoicing realm, Peppol usage centres around the Peppol eDelivery network rather than the BIS Billing 3.0 standard, as the national standard is the XRechnung. While the Peppol standard is only acceptable for cross-border invoices from abroad, the Peppol network provides public authorities with a standardised transmission channel for receiving invoices via machine communication.
As of October 2023, 14 federal states, covering almost 80 per cent of all municipalities in Germany, along with all federal authorities, are accessible via the Peppol network. In the two states which are not yet fully connected, Hesse and Bavaria, numerous municipalities are already part of the Peppol network. The connection of the Hessian and Bavarian state authorities to the network is expected to take place in 2024.
To reach German authorities via the Peppol network, the XRechnung standards must be adhered to, or, for international transactions, Peppol BIS Billing additionally. Invoices formalized with XRechnung can be received and processed via Peppol.
The World of Peppol IDs
The Peppol participant ID, or Peppol ID for short, is a unique reference used to identify who is sending and receiving a Peppol document. It serves as the key to identifying transaction partners in the network. The receiving company's Peppol ID, along with the organisation's name and the country in which it is based, is published in the global Peppol directory managed by OpenPeppol.
The Peppol ID comprises two main elements:
- An Identifier Scheme: This scheme code is a specific code or abbreviation associated with a particular type of identifier. Identifier schemes include both internationally recognised schemes (such as DUNS number, IBAN, and GLN) and specific nationally defined schemes. In Germany, these are
- the Leitweg-ID (DE:LWID, ICD 0204) - for public bodies
- the German VAT identification number (DE:VAT, ICD 9930) - primarily in the business sector.
- The value provided by the identifier scheme: This is the actual unique identifier of the company and depends on the chosen scheme. This can be a DUNS number or an IBAN, or - specifically in Germany - the company's VAT identification number or (in the case of a public entity) the Leitweg-ID.
The Peppol ID serves not only to identify the transaction parties. As participants must register with certified Peppol access providers (such as Unifiedpost Group), which verify the company, using the Peppol ID guarantees participants that they are communicating with a legitimate entity in the network. This authentication provides an additional layer of security.
We hope that this article has given you valuable insights into how Peppol enables efficient and secure communication in the B2G landscape in Germany. For more information on Peppol in general, please visit our dedicated Peppol page.
In our next blog post, we will take a closer look at how our SME platform, Banqup, can help you send legally compliant B2G invoices electronically in Germany - easier than you might think. Stay tuned for more interesting insights!
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