Understanding Peppol’s Five-Corner Model

Understanding Peppol’s Five-Corner Model
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Written by Malin Lundell

As digital transactions become increasingly prevalent, the need for robust eDelivery frameworks has never been more critical. The Peppol network is adapting to these demands by evolving from its traditional four-corner model to include an innovative fifth corner. This shift aims to integrate governmental oversight directly into the eInvoicing* process, setting a new standard for transparency and compliance.

*It’s important to note that Peppol encompasses eDelivery as a whole, not just eInvoicing, but for the purposes of this article we’ll talk about Peppol in the context of eInvoicing specifically.

A Quick Recap of the Peppol Four-Corner Model

The Peppol network traditionally utilises a four-corner model involving the Sender, Receiver, and their respective Access Points, facilitating seamless eInvoicing transactions. The process begins with the Sender transmitting a message through their Access Point, which is then relayed to the Receiver’s Access Point and ultimately to the Receiver, ensuring both parties confirm successful transmission of an eInvoice.

How is the Five-Corner Model different?

To further enhance transaction transparency and government oversight, Peppol now offers an alternative model with a fifth corner—the Government. This addition supports Continuous Transaction Controls (CTC), allowing for real-time monitoring and verification of transactions to improve tax compliance and combat fraud. This can be achieved as the relevant tax authority has visibility between tax revenue and business activity.

Who is transitioning to the Five-Corner Model?

Belgium has confirmed that they will shift from the Peppol Four-Corner Model to the 5-Corner model. This strategic move is aligned with the objectives of VIDA, aiming to enhance real-time compliance and reduce the VAT gap.

Staying on top of requirements

As the Peppol market leader, Tickstar offers unparalleled expertise and solutions to help organisations navigate the transition to Peppol and eInvoicing. Whether you’re seeking to understand how this change affects your business or need support implementing the new requirements, we are here to assist.

Ready to make the transition? Contact us today to find out more.