What is Peppol? A plain explanation for SMEs (2026)

In short: Peppol is the road, the e-invoice is the parcel that travels on it.

Why is everyone talking about Peppol now?

Because invoicing is about to change. In March 2025 the European Union adopted the ViDA rules (VAT in the digital age). From 1 July 2030, invoices between businesses in different EU countries must be electronic, in a European standard. On 11 September 2026 the Dutch cabinet said it wants the same obligation for invoices between Dutch businesses, also from 1 July 2030.

That domestic part is not law yet. It is a cabinet plan, and the bill is scheduled to go to the House of Representatives before the summer of 2027. The direction is clear. In E-invoicing mandatory in 2030 you can read exactly what is already fixed and what is not.

And Peppol? The consultancy EY advised the cabinet to prescribe Peppol as the network between businesses. The cabinet has not decided that yet, but Peppol is already mandatory in the Netherlands for invoices to the central government. It is likely you will have to deal with it.

How does Peppol work, without the jargon?

Peppol uses a four-corner model. It sounds complicated, but it is the same idea as email.

1. You create an invoice in your accounting package.
2. Your package (or the service provider behind it) turns the invoice into an e-invoice and sends it onto the network. A service provider is the company that arranges your Peppol connection, comparable to your internet provider.
3. The network looks up, in a central address book, which service provider your customer uses.
4. Your customer's service provider delivers the invoice into your customer's administration, where it is read in automatically.

You and your customer do not need to know each other's software. As long as you are both connected, the invoice arrives.

What is an e-invoice, actually?

An e-invoice is an invoice as a structured data file (usually XML) that software can read automatically, without anyone retyping it. A PDF you email is not an e-invoice, even though it is digital. Logius and Ondernemersplein say the same thing in so many words: a PDF invoice by email does not meet the European standard.

That European standard is called EN 16931. Peppol uses its own application of it, Peppol BIS Billing 3.0, with a few Dutch additions. You do not have to do anything with that yourself: your software handles it. If you want the difference in cost and errors, read Peppol vs a PDF invoice.

Who runs Peppol in the Netherlands?

Peppol is not a company and not an app. It is a set of agreements with three layers:

Until 1 October 2020 the Dutch role sat with the Simplerinvoicing foundation. Since then it is the NPa.

What is a Peppol ID?

A Peppol ID is your address on the network, comparable to an email address. In the Netherlands, for businesses, it is usually based on your KVK number. Public authorities often use their OIN, an identification number for organisations. Your customer does not need your Peppol ID to pay you, but does need it to send you an e-invoice. You can look up in the public Peppol Directory whether a business can already be reached.

What does Peppol cost an SME?

There is no fixed tariff, because you do not pay Peppol itself but your software supplier or service provider. In many accounting packages, sending and receiving is included in the subscription or costs a small amount per invoice. Against that there is a saving: in the parliamentary letter of 11 September 2026 the cabinet cites international benchmarks of on average €5 to €6 saved per invoice sent and about €8 per invoice received when working fully digitally.

What does this mean in practice for your business?

For most business owners there is no reason to panic today, but there is a reason to prepare. A few things you can do now:

1. Check whether your accounting package can send and receive Peppol invoices.
2. See whether your business can already be found in the Peppol Directory.
3. Make sure your customer details are right: KVK number, VAT number and invoice address.
4. Send a test invoice to a customer or supplier who is already on Peppol.
5. Do you supply the central government? Then e-invoicing has been mandatory for new contracts since 2017.

If you want to know how sending works step by step, read How to send your first Peppol invoice.

How does DT Admin help with this?

DT Admin is a Dutch administration and bookkeeping partner for business owners in every sector, from sole trader to a BV with a holding. Together we look at your invoicing, your software and your customers, and make a concrete plan so you are ready well before 2030, without having to track every rule yourself.

Want to know where you stand? Take the free check Are you 2030-ready?. Seven questions, and within three minutes you have your score.

This is a general explanation, not advice for your situation. DT Admin’s fees are indications excluding VAT.

Last checked: 28 October 2026. This article is general information, not legal or tax advice.