The Inland Revenue Authority of Singapore (IRAS) announced the adoption of InvoiceNow, a new system enabling GST-registered businesses to transmit invoice data directly to the IRAS. This move marks a significant step towards enhancing the digitalization of tax processes in Singapore.
Phased Adoption
To ensure a smooth transition, the IRAS will implement the GST InvoiceNow Requirement in a phased manner:
- From 1 May 2025: A soft launch will allow all existing GST-registered businesses to voluntarily transmit invoice data to the IRAS using InvoiceNow solutions.
- From 1 November 2025: Newly incorporated companies voluntarily registering for GST will be required to use InvoiceNow.
- From 1 April 2026: All new voluntary GST registrants, regardless of their incorporation date, must use InvoiceNow.
This phased approach provides businesses with ample lead time to adapt to the new system.
Exclusions
Certain groups are exempt from the GST InvoiceNow Requirement:
- Overseas entities, including vendors registered under the Overseas Vendor Registration regime.
- Businesses registered under the Reverse Charge regime.
Transmission of Invoice Data
Businesses under the GST InvoiceNow Requirement must transmit invoice data to the IRAS for the following transactions:
- Standard-rated supplies (excluding reverse-charge supplies).
- Zero-rated supplies.
- Standard-rated purchases where input tax claims are made or will be made (excluding reverse-charge purchases).
For point-of-sale and petty cash purchases, businesses may aggregate transactions before transmitting the data to the IRAS.
GST Returns
Despite the introduction of InvoiceNow, GST-registered businesses must continue preparing and filing their GST returns within the stipulated deadlines. Recordkeeping requirements remain unchanged, ensuring compliance with mandatory GST recordkeeping standards.
IMDA and IRAS Support
To facilitate the adoption of InvoiceNow, the Infocomm Media Development Authority (IMDA) and IRAS will support businesses by:
- Publishing a list of InvoiceNow solutions connected to the IRAS by May 2025.
- Providing grants such as the LEAD Connect & Transact Grant and InvoiceNow Transaction Bonus to help defray costs.
- Offering the Productivity Solutions Grant for IT solutions and equipment, including InvoiceNow solutions.
IMDA and IRAS are also reviewing additional measures to ease tax compliance, with further details to be provided when available.
Key Considerations for Businesses
To prepare for the GST InvoiceNow Requirement, businesses should:
- Assess their current readiness in terms of people, processes, and systems.
- Ensure data quality and automate processes to minimize manual interventions.
- Determine the most suitable InvoiceNow technology solution, whether through ready-made solutions or configuring in-house ERP systems.
The GST InvoiceNow Requirement represents a significant advancement in Singapore’s e-Invoicing landscape, aligning with broader e-invoicing developments in the ASEAN region. By adopting InvoiceNow, GST-registered businesses can streamline their compliance processes, reduce errors, improve cash flow management, and focus on their core priorities while ensuring adherence to GST requirements.
