The Inland Revenue Authority of Singapore (IRAS) released the first edition of the Adopting of GST InvoiceNow Requirement for GST-registered Businesses in March.
This e-Tax Guide provides details on the requirements for GST registered businesses to submit invoice data to IRAS using InvoiceNow network.
1. What is InvoiceNow?
InvoiceNow is Singapore’s nationwide e-Invoicing framework based on the Peppol standard, allowing businesses to exchange invoices digitally in a structured format which enables invoices to be transmitted directly from one business’s accounting system to another without manual intervention.
This will help businesses to ensure reducing errors and complying with IRAS tax submission requirements.
Implementation Timeline
The adoption of the GST InvoiceNow Requirement will be phased in gradually:
- May 1, 2025 (Soft Launch): Existing GST-registered businesses and new voluntary registrants can choose to transmit invoice data to IRAS as early adopters.
- November 1, 2025: Newly incorporated companies (within six months of incorporation) that apply for voluntary GST registration must comply with the requirement.
- April 1, 2026: All new voluntary GST registrants, regardless of incorporation date, must comply with the requirement.
- Possible Future Expansion: It is expected IRAS to progressively extend the requirement to all GST-registered businesses in the future.
How InvoiceNow Works
The InvoiceNow network follows a four-corner model, extended with a fifth corner to facilitate invoice data transmission to IRAS. The process includes:
- Supplier issues an invoice via an InvoiceNow-Ready Solution, sending it through an Access Point Provider (AP).
- The invoice is routed through the Peppol network and delivered to the customer’s Access Point.
- The invoice is recorded in the customer’s InvoiceNow-Ready accounting system.
- IRAS receives a copy of the invoice data automatically for tax administration.
For invoices issued outside the InvoiceNow network (e.g., paper invoices, PDF invoices,), businesses must manually record and transmit the data to IRAS through their accounting software.
2. Who Needs to Comply?
The GST InvoiceNow Requirement applies to:
Newly incorporated companies registering for GST voluntarily from November 1, 2025.
All voluntary GST registrants from April 1, 2026.
Businesses opting in early from May 1, 2025.
Are There any Exemptions?
Some businesses are excluded, including:
Overseas entities
Businesses liable for GST registration solely due to Reverse Charge rules.
3. Types of Invoice Data to Be Submitted
GST-registered businesses must transmit invoice data that aligns with GST return reporting, including:
Mandatory Invoice Data Submission:
Standard-Rated Supplies: Local sales of goods and services, supplies under Gross Margin Scheme (GMS), or Customer Accounting transactions.
Zero-Rated Supplies: Exported goods, international services.
Exempt Supplies: Sale or lease of residential properties, investment precious metals.
Standard-Rated Purchases: Business purchases with GST claims, purchases under Customer Accounting.
Zero-Rated Purchases: International freight charges, imported goods under zero-rated conditions.
Transactions Excluded from Scope:
Deemed Supplies
Reverse Charge Transactions.
Out-of-Scope Supplies
Purchases from non-GST-registered suppliers.
4. How Is Invoice Data Transmitted to IRAS?
Businesses must submit invoices using Peppol submission method:
Peppol Submission Method
- The supplier issues an invoice through InvoiceNow.
- A copy of the invoice data is automatically sent to IRAS.
5. Submission Deadlines
Invoice data must be transmitted to IRAS no later than:
The date of the GST return submission OR
The filing due date of the GST return
6. Handling Credit Notes and Invoice Adjustments
- If a credit note is issued (e.g., for refunds or price adjustments), it must also be submitted to IRAS.
- If an invoice error that do not affect the monetary values on the invoice is detected, businesses can resubmit the corrected invoice using the same Document UUID.
7. System Validation Checks
To prevent errors, InvoiceNow-Ready Solutions will perform validation checks, such as:
Ensuring invoice data follows the correct format.
Detecting wrongful GST charges by verifying supplier GST registration.
Preventing duplicate or incorrect submissions.
The GST e-invoicing mandate is a significant development in the digital tax compliance landscape in Singapore. The phased implementation will begin in November 2025 and to ensure a smooth transition, businesses should start preparing now.
For more details, refer to the full IRAS e-Tax Guide on InvoiceNow compliance: https://www.iras.gov.sg/media/docs/default-source/uploadedfiles/gst/etaxguide_gst_invoicenow_requirement.pdf?sfvrsn=d2828aad_25
