Singapore is taking a significant step towards digital tax administration with the introduction of the GST InvoiceNow Requirement. This new mandate requires GST-registered businesses to transmit invoice data to the Inland Revenue Authority of Singapore (IRAS) using InvoiceNow solutions, aligning with the international Peppol standard. Here’s what you need to know about the draft law published on June 12, 2024, and its key requirements.
What is InvoiceNow?
InvoiceNow is Singapore’s nationwide e-Invoicing network based on the Peppol international standard. Introduced by the Infocomm Media Development Authority (IMDA) in 2019, InvoiceNow enables businesses to send and receive invoices in a structured digital format. This method reduces the need for manual processing and minimizes errors, streamlining accounting processes.
Phased Adoption of the GST InvoiceNow Requirement
The implementation of the GST InvoiceNow Requirement will be progressive to give businesses ample time to prepare. The phases are as follows:
- From 1 November 2025: Applicable to newly incorporated companies that register for GST voluntarily. These are companies incorporated within six months of their GST registration application.
- From 1 April 2026: Mandatory for all new voluntary GST registrants, regardless of their incorporation date or business constitution.
A soft launch will commence on 1 May 2025, allowing existing GST-registered businesses to be early adopters and start transmitting invoice data to IRAS using InvoiceNow solutions.
Scope of the Requirement
The GST InvoiceNow Requirement applies to both Business-to-Business (B2B) and Business-to-Consumer (B2C) transactions. Specifically, GST-registered businesses will be required to transmit invoice data to IRAS for the following transactions:
- Standard-rated supplies (excluding reverse charge supplies)
- Zero-rated supplies
- Standard-rated purchases on which input tax claims are made or will be made (excluding reverse charge purchases)
Businesses can aggregate point-of-sale supplies data and petty cash purchases data before transmitting them to IRAS.
Key Requirements
- Using InvoiceNow Solutions: Businesses must use InvoiceNow solutions, which can be off-the-shelf software or customized enterprise resource planning (ERP) systems, to send invoice data to IRAS. These solutions will be connected to IRAS via Access Points (AP) using API technology.
- Due Dates for Transmission: Invoice data must be transmitted to IRAS by the earlier of the date the relevant GST return is filed or its filing due date.
Example:
- 20 Mar 2026: Company A issues a tax invoice to Company B.
- 10 Apr 2026: Company B pays Company A.
- 20 Apr 2026: Company A files its GST return.
- 30 Apr 2026: Company B files its GST return.
Both companies need to transmit the invoice data by their respective GST return filing dates.
Benefits of Using InvoiceNow Solutions
- Streamlined Processes: Direct transmission of e-Invoices in a structured format reduces manual work and errors.
- Cost Reduction: Less manual processing means fewer errors and lower rectification costs. Electronic records also cut down on storage and retrieval costs.
- Improved Cashflow Management: Faster invoice processing leads to quicker payments, enhancing cashflow management.
Additional Benefits for GST-Registered Businesses
- Reduced Compliance Efforts: Transmitting invoice data to IRAS can simplify data preparation for submissions.
- Shorter Audits: Better risk analysis by IRAS could mean fewer and shorter audits.
- Faster Refunds: Businesses assessed as low-risk could receive GST refunds more quickly.
Steps to Prepare for Adoption
- Ensure Solution is InvoiceNow-Enabled: Verify if your current or planned solution is listed on IMDA’s pre-approved e-Invoicing solution provider list.
- Register for InvoiceNow: Obtain your Peppol ID by registering your business in the SG Peppol Directory.
- Connect to IRAS’ System: Ensure your InvoiceNow solution is connected to IRAS via API.
- Activate and Transmit: Work with your provider to enable the feature for transmitting invoice data and test the system to ensure successful data transmission.
The GST InvoiceNow Requirement marks a significant move towards digitalization and efficiency in Singapore’s tax administration. By adopting InvoiceNow solutions, businesses can not only comply with the new mandate but also benefit from streamlined processes, reduced costs, and improved cash flow management. We encourage businesses to prepare early and take advantage of the various grants and support measures available to facilitate this transition.
For more detailed information, refer to IMDA’s webpage on InvoiceNow and the draft e-Tax Guide GST: Adopting InvoiceNow Requirement for GST-registered Businesses.
