Peppol Implementation in Finland: Expansion from e-Invoicing to Commercial Transactions and Logistics

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Peppol (Pan-European Public Procurement On-Line) is an international project aimed at promoting the standardization of e-procurement and e-commerce. In Finland, the implementation and adoption of Peppol have been actively promoted alongside the mandatory introduction of e-Invoicing. Particular attention has been paid to the utilization of Post Award functions such as Advanced Ordering and Peppol Logistics. The adoption of Peppol standards in Finland has been led by the State Treasury, serving as the Peppol Authority, which promotes the digitalization of not only e-Invoicing but also order processing and logistics processes. As a result, efficient transaction processes using Peppol Advanced Ordering and Peppol Logistics have been successfully established.

1. Peppol Implementation in Finland

1.1. Establishment of the Peppol Authority

The State Treasury of Finland (Valtiokonttori) was officially recognized as the Peppol Authority in Finland in 2022. The agency is responsible for promoting and operating the Peppol network within Finland.

1.2. Role of the Peppol Authority

The main roles of the State Treasury as the Peppol Authority in Finland are:

  • Promoting the use of the Peppol network domestically and coordinating collaboration among stakeholders

  • Supporting and supervising Peppol service providers operating in Finland

  • Monitoring developments in domestic law

  • Coordinating training and improving capabilities

  • Participating in the development of the international Peppol network and providing influence

1.3. Introduction of Advanced Ordering by the Central Government

Details of the ordering process in the Peppol network:
Reference: https://www.valtiokonttori.fi/en/getting-to-know-peppol-part-2-order-processes-in-the-peppol-network/
OrderProcess

The Finnish government is promoting efforts to standardize and streamline ordering processes using Peppol. Particularly in public procurement, the use of Peppol Advanced Ordering is encouraged.

This process covers the following transactions:
As of November 2024, Peppol BIS version 3 is available here:
Reference: https://docs.peppol.eu/poacc/upgrade-3/
BIS

Advanced Ordering aims to standardize the entire process from ordering to receiving electronically.

Each transaction is designed to be applied to the Finnish government’s procurement processes. The use of the Peppol network is expected to improve efficiency and transparency.

1.4. Peppol Logistics

Peppol Logistics aims to standardize logistics transactions and achieve efficient data exchange.

This project was initiated in January 2023 by proposals from Offshore Norge and BEAst and has been implemented with the approval of the OpenPeppol Managing Committee.

The implementation is being tested in Finland, and the use of standard transactions such as Advanced Despatch Advice and Receipt Advice is expected to improve the efficiency and transparency of the entire logistics process. Additionally, the Finnish Peppol Authority provides forums where service providers and end-users collaborate to promote the use of Peppol in the logistics field.

Peppol Logistics aims to improve efficiency and standardization in logistics data exchange. The following transaction specifications have been established:

  • Advanced Despatch Advice Only 1.2

  • Advanced Despatch Advice with Receipt Advice 1.0

  • Weight Statement 1.2

  • Transport Execution Plan with Request 1.0

  • Transport Execution Plan Only 1.0

  • Waybill 1.0

  • Transportation Status with Request 1.0

  • Transportation Status Only 1.0

2. Proposal for Peppol Implementation in Japan

2.1. Overview

Based on the Finnish example, it is desirable for Japan to promote the spread of e-procurement and e-invoicing using the Peppol network. Particularly, it is important to present a model case through government procurement that supports digital transformation (DX) that can be utilized even by small and medium-sized enterprises (SMEs).

In Japan, the Qualified Invoice System (Invoice System) began in October 2023. Although this system aims to ensure proper calculation and payment of consumption tax, SMEs face challenges such as system implementation and cost burdens.

Additionally, while the Japanese government, led by the Digital Agency, is promoting the spread of e-Invoicing using Peppol, its use is often limited to Qualified Invoices.

2.2. Lessons from the Finnish Example

In Finland, the Peppol network is used not only for e-Invoicing but also for standardizing and efficiently operating processes related to ordering and logistics. The government encourages the use of Peppol and applies standardized processes to both the public and private sectors.

2.3. Recommendations for Japan

  • Further expand the use of Peppol standards in government procurement.

  • Establish support measures for SMEs to use Peppol.

  • Apply the system to a wide range of processes such as ordering, logistics, and receipt, not limited to Qualified Invoices.

  • Demonstrate the introduction of standardized processes using Peppol as a model case through government procurement.

Implementing Peppol in Japan based on the successful Finnish example, led by the government, could bring benefits to both the public and private sectors. Strengthening support for SMEs is expected to accelerate the spread of DX.


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