By Kelly R
With the rise of digital payment revolution, it is high time for your business to hop on the digital bandwagon — and E-Invoicing is a key part of doing digital business transactions smoothly and efficiently. If you are new to digital payment, here are some pieces of information to answer your questions regarding PEPPOL E-Invoicing:
Interested to take part in the E-Invoicing revolution? Here are the steps you can take as a company:
After signing up with PEPPOL E-invoicing, the next step is to update all Purchase Order (PO) documents with your PEPPOL business identity for invoicing.
Finally, officially announce that you are E-Invoicing ready to all your business partners and suppliers electronically through the network to the recipient (buyer) where it is processed automatically, offering the ability of greater digital efficiencies and better cash flow for suppliers.
Security and integrity of the messages exchanged through the PEPPOL network (E-Invoice Transport Infrastructure) relies on encrypted transport using SSL and additionally a Public Key Infrastructure (PKI). This ensures that only parties with valid digital certificates can communicate on the PEPPOL network. When any Access Point or SMP providers sign the PEPPOL Transport Infrastructure Agreement with IMDA they can apply for a PEPPOL Digital Certificate.
This certificate contains the key cryptographic information for validating their communications on the PEPPOL network. This ensures only known and trusted providers have access to the E-Invoice Transport Infrastructure.
No, under current regulation IRAS is not able to access your invoice. However, you do need to comply with any IRAS tax regulations as per normal. How much does it cost? This is dependent on the Access Point operator that you choose. Each Access Point operator will offer different business models and value-added services and businesses will need to make their own decision based on their requirements.
The necessary technical specifications and resources used to implement PEPPOL-compliant solutions and services are available at http://peppol.eu/support/.
Business users and customers should be aware that PEPPOL has been adopted as the national standard in Singapore. Secondly, they can tie up any PEPPOL Access Point provider and gain access to customers across the entire PEPPOL network (i.e. connect once, connect everywhere) both locally and globally.
For those customers already using ERP and Accounting package providers, it is anticipated that they may only need minor changes or additions to their current software interfaces to make use of the PEPPOL E-Invoicing services. IMDA is working with many local accounting and ERP providers to ensure that their systems are compatible with and support the PEPPOL standards and specifications.
The Singapore government is currently working with all government agencies and ministries to introduce the use of PEPPOL for their invoices. The shift to start using PEPPOL is expected to happen sometime in the second half of 2019.
In short yes, Electronic digital invoices are still valid as evidence. Extracting from the Electronic Transactions Act in Singapore, Clause 6 states “For the avoidance of doubt, it is declared that information shall not be denied effect, validity or enforceability solely on the ground that it is in the form of an electronic record.”
Additionally, the IRAS E-Tax Guide record keeping guide for GST registered businesses states the following in section 3.3.2. “Physical copies of source documents need not be kept to substantiate your business transactions for tax purposes if the source documents are kept electronically “.
Do note that “businesses should ensure that proper internal controls are put in place to ensure the integrity, completeness, accuracy, availability and reliability of the electronic records, including all transactions executed electronically, where applicable”.
Yes, as PEPPOL is an international standard it allows you to send and receive invoices from overseas entities. Do note that this does not exempt you from compliance with any local or international regulations.
No, PEPPOL E-invoicing only covers business to business transactions, businesses to consumer transactions are currently not covered.