eInvoicing – FAQs
What is electronic invoicing?
For the purpose of the European Directive 2014/55/EU on electronic invoicing in public procurement, ‘electronic invoice’ means an invoice that has been issued, transmitted and received in a structured electronic format which allows for its automatic and electronic processing; The Directive establishes the European Standard or Norm for eInvoicing as the structured electronic format that public bodies are obliged to receive and process.
The structured electronic format facilitates the automatic processing of invoices received into back office financial accounts, Enterprise Resource Planning (ERP) and other data processing systems. While the term ‘electronic invoicing’ is often used to refer to the processing of invoices sent by a range of electronic means, from sending a scanned image or PDF invoice by email, to sending an invoice in propriety ERP or national standard formats, these methods and formats do not meet the requirements of the European Directive.
What are the advantages of eInvoicing?
The benefits of electronic invoicing are maximised when the generation, sending, transmission, reception and processing of an invoice can be fully automated.
Widespread adoption of electronic invoicing within the EU is expected to lead to significant economic benefits. The move from paper to (fully automated) eInvoices allows public entities buying goods or services to reduce business costs and contribute to the modernisation of domestic payment infrastructure. This is achieved by:
quicker and cheaper processing, as information can be automatically validated and imported into payment and accounting systems (reducing manual data entry)
increased control over cash flow, which is critical to sustaining business operations
reduced material cost and a reduced environmental impact by removing delivery and print costs and by removing the need to archive paper, and to purchase envelopes, paper and stamps
greater transparency is built into the whole Procure to Pay (P2P) cycle.
having all eInvoice status information visible to the supplier reduces time spent on managing supplier inquiries
reduced data error by removing manual entry reduces time spend on balancing accounts and searching for discrepancies.
How can Suppliers send eInvoices to Maltese Government entities?
In order for suppliers to be able to send eInvoices to Maltese Government entities they have two options:
log into the portal and key in the invoice details; or
If their ERP system is thus enabled, automatically transmit an eInvoice, in XML format through a Certified Peppol Access Point Service Provider. A full list of Certified Peppol Access Point Service Providers is available here: https://peppol.eu/who-is-who/peppol-certified-aps/.
The Maltese Government has entered into an agreement with Pagero, an internationally recognised Certified Peppol Service Provider for the provision of Peppol Networking and eInvoicing services and to support their suppliers in sending eInvoices to all public sector bodies. For more information about Pagero and the services they are providing the Government of Malta and their suppliers, please click here.
Do suppliers have to send electronic invoices?
There is no legal requirement for suppliers to submit invoices in electronic format to Maltese public bodies at this point in time. However, the Government of Malta is legally bound to accept eInvoices emanating from contracts that are within the EU Procurement thresholds.
eInvoicing and The Government of Malta
The Government of Malta supports the widespread adoption of eInvoicing as part of its Digital Malta national strategy and as a result of its participation in the EU Funded “eInvoicing4Islands” project (implemented between June 2019 and Q3 2021), has committed to deploying a new eInvoicing service for all Central Government Departments and its sub-central authorities.
This initiative is in response to the European Directive on eInvoicing in Public Procurement (2014/55/EU) which requires all public sector organisations to be able to receive electronic invoices that comply with the European eInvoice Standard EN 16931.
To enable it to meet its obligations under the Directive, the Government has chosen the Peppol network and infrastructure to provide consistent and standardised channels for the Maltese public administration to be able to receive eInvoices from its suppliers.
What is an eInvoice?
For the purpose of the European Directive 2014/55/EU on electronic invoicing in public procurement, ‘electronic invoice’ means an invoice that has been issued, transmitted and received in a structured electronic format which allows for its automatic and electronic processing and establishes the European eInvoice Standard (EN 16931) as the structured electronic format that public bodies are obliged to receive and process. A pdf sent via email does not meet the requirements of the Directive.
What is Peppol?
Peppol is a common framework for the secure cross-border exchange of electronic business documents. Established in 2008 by the EU Commission, the framework’s original was to make trade easier between European governments.
Today, Peppol goes beyond the European continent. The common Peppol framework aims to enable both private and public entities to exchange electronic orders and eInvoices in a controlled, simple and secure manner no matter where they operate from.
Following a public tender process, the Ministry of Finance and Employment signed a contract with Pagero, an internationally recognised Certified Peppol Service Provider for the provision of Peppol Networking and eInvoicing services for all its departments, entities, regional authorities, and local councils. For more information about Pagero and the services they are providing to the Government of Malta and their suppliers, please click here.
For more information on eInvoicing, Peppol and how it all works please go to our Resources page by clicking here.