Singapore e-Invoicing FAQs for Businesses

As Singapore moves toward a more digital and efficient economy, the implementation of e-invoicing marks a significant step in streamlining business processes and enhancing tax compliance. The adoption of e-invoicing allows businesses to electronically transmit invoices in a structured format, reducing manual errors and improving operational efficiency. In Singapore, the e-invoicing mandate is closely tied to the InvoiceNow network, a nationwide system based on the global Peppol standard.

Starting in phases from 2025, GST-registered businesses must comply with e-invoicing regulations, integrating their accounting systems with IRAS (Inland Revenue Authority of Singapore) through InvoiceNow. This transition not only aligns Singapore with global trends but also offers businesses tangible benefits, including cost savings, streamlined processes, and improved cash flow management.

Below is a set of frequently asked questions (FAQs) that cover everything you need to know about e-invoicing, its scope, technical requirements, benefits, and how your business can prepare for this change.

FAQs related to General Overview of e-Invoicing Singapore

What is E-Invoicing?

E-invoicing refers to the electronic transmission of invoices between businesses in a structured digital format. Unlike traditional invoicing methods (e.g., PDFs or paper), e-invoicing automates the entire process, allowing invoices to be sent directly from a supplier’s system to a buyer’s system without human intervention. This eliminates manual data entry, reduces errors, speeds up payments, and ensures greater efficiency in financial operations.

What is E-Invoicing in Singapore?

E-invoicing in Singapore has become a government mandate to streamline tax compliance and business operations. Starting in phases from 2025, businesses are required to transmit invoice data to IRAS (Inland Revenue Authority of Singapore) via a standardized network called the InvoiceNow network. This mandate supports digital transformation and aligns with global trends for tax administration.

What is the difference between E-Invoicing vs. InvoiceNow in Singapore?

E-Invoicing is a recent mandate requiring businesses to send invoice data to IRAS for tax purposes, while InvoiceNow is Singapore’s existing e-invoicing network based on the Peppol international standard, introduced in 2019.

• E-invoicing relies on the InvoiceNow network for compliance.
• The InvoiceNow network connects to IRAS to transmit, validate, and store invoice data.
• GST e-invoicing, GST InvoiceNow, and InvoiceNow are used interchangeably but have minor differences in context.

How is E-Invoicing different from current practices?

Traditional invoicing methods involve manually creating invoices, sending them as PDFs or paper copies, and requiring the recipient to re-enter the data into their systems. These methods are error-prone, time-consuming, and costly.

E-invoicing automates this process by directly transmitting invoice data in a structured format, reducing errors, costs, and processing times. Unlike traditional systems, e-invoicing validates and stores data in real time through IRAS.

Scope and Compliance of Singapore e-invoicing 

What is the scope of the e-invoicing mandate in Singapore?

The e-invoicing mandate in Singapore applies to GST-registered businesses required to transmit invoice data to IRAS through the InvoiceNow network. This initiative aims to enhance tax compliance, streamline business operations, and integrate tax reporting with accounting systems. The scope is currently limited to business-to-business (B2B) transactions and excludes consumer-related invoices.

What transactions require mandatory invoice data transmission?

The following transactions require mandatory invoice data transmission to IRAS:

1. Standard-rated supplies, excluding reverse charge supplies.
2. Zero-rated supplies.
3. Standard-rated purchases on which input tax claims are made or will be made, excluding reverse charge purchases.

Are there exceptions for certain types of transactions under the e-invoicing requirement?

Yes, transactions related to reverse charge supplies and purchases are not included in the mandatory transmission requirements. Additionally, businesses using point-of-sale systems or handling petty cash purchases can aggregate transaction data before transmitting it to IRAS.

Are consumer invoices included in E-Invoicing?

No, the e-invoicing mandate only applies to B2B transactions. Consumer invoices are excluded.

Adoption and Implementation of GST e-Invoicing

How can a business participate in E-Invoicing?

Although required by mandate for certain GST-registered businesses, others can voluntarily adopt e-invoicing. Steps to participate include:

1. Using a Peppol-enabled or compatible accounting/ERP system.
2. Registering with an Access Point Provider for a Peppol ID.
3. Integrating systems to connect to the InvoiceNow network.
4. Starting electronic transmission of invoices to business partners and IRAS.

What is the typical lead time for a business to onboard InvoiceNow solutions?

For businesses using popular finance and accounting solutions, onboarding typically takes 1 to 3 days as these systems are often pre-integrated with InvoiceNow. For businesses using in-house solutions, the integration process can take 3 to 12 months due to the need for custom development and system testing.

When will the GST InvoiceNow Requirement be implemented?

The implementation will be phased:

• A soft launch for early adopters will begin on 1 May 2025.
• Newly incorporated companies registering for GST voluntarily must comply from 1 November 2025.
• All new voluntary GST registrants must comply from 1 April 2026.

Do businesses need to change their systems for PEPPOL e-invoices?

Many businesses already use Peppol-ready solutions. If not, businesses may need to:

1. Upgrade their accounting/ERP software.
2. Work with Access Providers to enable connectivity.

Do point-of-sale (POS) systems need to transmit invoice data individually?

No, businesses using POS systems can aggregate transaction data before transmitting it to IRAS. This allows streamlined reporting while ensuring compliance.

Technical and Security Details related to InvoiceNow e-Invoicing 

What interfaces or protocols are available for connectivity?

Businesses can use the Peppol eDelivery Network for connectivity. Access Point Providers handle the technical aspects of translating and transmitting invoices in the Peppol format.

Who are the Access Providers, and where can they be found?

Access Providers connect businesses to the InvoiceNow network. A list of IMDA-approved Access Point Providers is available on the IMDA website.

Is E-Invoicing secure?

Yes, e-invoicing is secure:

• Data is transmitted via encrypted channels (SSL).
• Public Key Infrastructure (PKI) ensures only authorized parties can access the network.
• Strict standards govern Access Point Providers to maintain data integrity and authenticity.

How will the invoice data transmitted to IRAS be stored?

Invoice data will be securely stored in IRAS’ system, which adheres to public sector security requirements. IRAS is committed to safeguarding the confidentiality and security of taxpayers’ data, ensuring high standards of accountability.

Benefits and Cost of Singapore GST e-Invoicing

What are the benefits of using InvoiceNow solutions?

InvoiceNow provides several advantages, including:

• Streamlined processes and automation.
• Reduced errors and costs associated with manual handling.
• Improved cash flow management through faster processing and payments.
• Reduced compliance efforts and easier tax reporting.
• Potential for fewer GST audits and faster refunds for low-risk businesses.

How much does E-Invoicing cost?

Costs depend on the Access Point or Solution Provider chosen. Many providers offer free or low-cost options for smaller businesses. Grants like the Productivity Solutions Grant (PSG) are available to offset costs. While initial implementation may incur expenses, e-invoicing reduces costs over time by eliminating manual processes, errors, and compliance risks.

Are there any grants or support available for businesses to acquire InvoiceNow solutions?

Yes, support includes:

• InvoiceNow Transaction Bonus and LEAD Connect and Transact Grant by IMDA.
• Productivity Solutions Grant (PSG), offering up to $30,000 for approved solutions.
• IMDA and IRAS are evaluating additional measures to ease compliance.

Additional Context on e-invoicing in Singapore

Will businesses be penalized for errors on invoices sent to IRAS?

Businesses remain responsible for ensuring invoice accuracy and fulfilling GST obligations. Errors voluntarily disclosed within a grace period may qualify for penalty waivers or reduced penalties under the Voluntary Disclosure Programme.

Do businesses still need to file GST returns and keep records?

Yes, businesses must continue to file GST returns and maintain proper accounting records as per regulatory requirements. The adoption of InvoiceNow simplifies data preparation but does not replace these obligations.

Does E-invoicing support cross-border transactions?

Yes, Peppol allows seamless cross-border invoicing, enabling businesses to transact digitally with overseas partners connected to the network.

Are digital electronic invoices legally valid?

Yes, Singapore’s Electronic Transactions Act ensures that digital invoices are legally valid. Businesses must maintain internal controls to ensure data integrity and compliance.

When will the Singapore government start using PEPPOL?

Singapore’s government agencies began adopting Peppol in 2019 for invoices and will continue expanding its usage across ministries and agencies.