GST InvoiceNow Requirements: Your Guide to Singapore e-Invoicing

The Inland Revenue Authority of Singapore (IRAS) announced the soft launch of the GST InvoiceNow starting in May 2025  as soft launch for voluntary early adoption. And from 1 Nov 2025, GST InvoiceNow compliance would be mandatory for all newly incorporated companies that voluntarily register for GST.

This initiative mandates GST-registered businesses to transmit invoice data directly to IRAS for tax administration purposes through the InvoiceNow network. All businesses under the scope will need to use InvoiceNow solutions to transmit invoice data seamlessly to IRAS via Access Point providers, streamlining compliance processes, reducing data preparation efforts, and facilitating faster GST refunds.

Background: Road to the GST InvoiceNow

• May 2018: Singapore launches nationwide e-invoicing standard framework Peppol. The Infocomm Media Development Authority of Singapore (IMDA) became the first Peppol Authority outside of Europe.
• January 2019: IMDA implements the nationwide e-invoicing network to replace paper, aiming to improve efficiency, reduce costs, facilitate faster payments, and promote environmental sustainability.
• September 2020: The nationwide e-invoicing network is renamed as InvoiceNow.
• December 2021: IMDA announces collaboration with other government agencies to enable them to issue e-invoices directly to corporate customers through InvoiceNow.
• Feb 2023: Government of Singapore announces plans to mandate B2G e-invoicing via the InvoiceNow platform.
• October 2023: Successful trial of InvoiceNow e-invoicing platform prompts IRAS to confirm the adoption of Peppol e-invoicing standard for B2G transactions.
• Dec 2023: Inland Revenue Authority confirms Peppol InvoiceNow adoption for Business-to-Government (B2G) transactions, making it compulsory.
• 15 April 2024: Inland Revenue Authority of Singapore (IRAS) announced a phased voluntary introduction of e-invoice mandate via the InvoiceNow network.

Timeline for GST InvoiceNow Implementation

GST InvoiceNow requirements are supposed to apply to all GST-registered businesses in a phased approach, allowing businesses time to adapt.

It starts with voluntary adoption, progresses to include newly incorporated businesses, and finally encompasses all new voluntary GST registrants.

Explanation

The government has initially suggested voluntary adoption for existing GST-registered businesses. However, considering practices observed in other countries, it's likely that implementation will occur gradually for all businesses, possibly based on turnover.

Scope of GST InvoiceNow

The scope of the GST InvoiceNow initiative encompasses several key aspects aimed at enhancing tax administration efficiency and compliance among GST-registered businesses. Here's an overview:

1. Transactions Covered: GST-registered businesses are required to transmit invoice data to IRAS for specific transactions, including:
   • Standard-rated supplies (except supplies under reverse charge)
   • Zero-rated supplies
   • Standard-rated purchases for which input tax claims are made or will be made. However, this excludes reverse-charge purchases.
2. Point-of-Sale Supplies and Petty Cash Purchases: For these types of transactions, businesses have the option to aggregate them before transmitting the data to IRAS.

How is GST InvoiceNow different from current Invoicing?

The implementation of GST InvoiceNow represents a significant shift in the invoicing process for GST-registered.

1. Digital Transmission: GST InvoiceNow requires businesses to transmit invoice data electronically to the Inland Revenue Authority of Singapore (IRAS) using InvoiceNow solutions and networks. This means moving to a fully digital process facilitated by specialized accounting and finance solutions that support InvoiceNow.
2. Standardized Format: InvoiceNow operates on the Peppol standard, ensuring that invoices are exchanged in a structured digital format for seamless data exchange and transmission. Accounting and finance solutions supporting InvoiceNow are configured to automatically generate invoices in the required format.
3. Two-Way Data Flow: Through the InvoiceNow portal, both sellers and buyers are required to input their sale and purchase data. This data is then validated and securely stored in the IRAS system. 
4. Integration with IRAS: All information entered by buyers and sellers via the InvoiceNow portal is seamlessly integrated with the IRAS system. Once inputted, this data undergoes validation checks to ensure accuracy and compliance with tax regulations before being securely stored. 

Major Stakeholders: InvoiceNow Solutions, InvoiceNow Network, Peppol, IRAS and IMDA

IRAS (Inland Revenue Authority of Singapore)

IRAS is the tax authority in Singapore responsible for administering taxes, including the Goods and Services Tax (GST). It oversees the collection of taxes and ensures compliance with tax laws and regulations.

IRAS would receive, validate and store the invoice data received from the supplies and buyers and would use it for tax assessment, compliance, and enforcement.

InvoiceNow Solutions

InvoiceNow Solutions refers to finance and accounting software or systems that enable the transmission of invoices between businesses via the InvoiceNow network. These solutions can be off-the-shelf software or customized enterprise resource planning systems connected to the InvoiceNow Network through the access point.

InvoiceNow Solutions will facilitate the transmission of invoice data from GST-registered businesses to InvoiceNow Network for tax administration purposes. 

InvoiceNow Network

The InvoiceNow Network is a nationwide e-invoicing network based on the international Peppol standard. It enables businesses to send and receive invoices in a structured digital format, improving efficiency and reducing the need for manual processing.

The InvoiceNow Network is the infrastructure through which invoice data is transmitted from InvoiceNow solutions to IRAS system. 

Peppol

Peppol, which stands for Pan-European Public Procurement On-Line, is an international standard for electronic document exchange, particularly focused on e-invoicing. It provides a set of specifications and protocols for the secure and standardized exchange of business documents, such as invoices, between trading partners.

The InvoiceNow Network is based on the Peppol standard, enabling businesses to exchange invoices in a structured digital format. Peppol ensures interoperability and compatibility between different systems and allows businesses to transmit invoice data securely and efficiently to IRAS.

IMDA (Infocomm Media Development Authority):

IMDA is a statutory board in Singapore that oversees the development and regulation of the infocomm media sector. It promotes the adoption of digital technologies and supports initiatives to enhance Singapore's digital capabilities.

IMDA has collaborated with IRAS and other businesses to promote the adoption of InvoiceNow among GST-registered businesses. It provides support, resources, and grants to encourage businesses to adopt InvoiceNow Solutions. IMDA also oversees the InvoiceNow Accelerate program, which offers free InvoiceNow services to newly incorporated businesses.

Exemptions from the GST InvoiceNow Requirement

Exemptions are granted to specific categories of businesses, such as

• Overseas Entities including Overseas Vendors: Parties that are registered under the Overseas Vendor Registration regime and overseas vendors are exempt for GST InvoiceNow compliance. Since they operate outside Singapore's jurisdiction, they are exempt from the GST InvoiceNow Requirement.
• Businesses Registered under the Reverse Charge Regime: Businesses operating under the Reverse Charge regime

When to send invoice data to IRAS?

The timing for sending invoice data to IRAS depends on the filing of the relevant GST return. The invoice data should be transmitted to IRAS at the earlier of:

• The date in which the relevant GST return is filed.
• The filing due date of the relevant GST return.

Businesses must ensure that they transmit the invoice data to IRAS either when they file the relevant GST return or by the filing due date of that return, whichever comes first.

Other Important Points Regarding GST InvoiceNow

• Businesses are responsible for ensuring compliance with invoicing requirements.
• The adoption of GST InvoiceNow does not exempt businesses from mandatory record-keeping obligations for GST-registered businesses.
• Invoice data transmitted to IRAS will be stored in IRAS' system with adequate support
• Grants such as the InvoiceNow Transaction Bonus and LEAD Connect and Transact Grant are available for businesses willing to adopt GST InvoiceNow on

How Businesses Should Prepare for Adoption of GST InvoiceNow Solutions?

It's important for businesses under the GST InvoiceNow to be compatible with the GST InvoiceNow Requirement. To ensure a smooth transition, follow these steps:

Step 1: Ensure that your solution is InvoiceNow-enabled

• For businesses with existing accounting or finance solutions or businesses that are planning to purchase one, check whether your preferred solution is listed on IMDA’s pre-approved e-invoicing solution provider list. You may also consider adopting free solutions with basic InvoiceNow capabilities.
• For large enterprises using their own in-house solutions, get in touch with an IMDA pre-approved Access Point Provider to help you connect to the InvoiceNow network.

Step 2: Register for InvoiceNow and Obtain Peppol ID

• The business should approach its Solution Provider and/or Access Point Provider to register in the SG Peppol Directory using its Unique Entity Number (UEN) and acquire the Peppol ID.

Step 3: Connectivity with IRAS System via API

• They should contact their Solution Provider and/or Access Point Provider to ensure the connectivity of their InvoiceNow solution with IRAS through API.

Step 4: Feature Activation and Data Transmission

• Working with their Solution Provider and/or Access Point Provider, they should activate the feature allowing them to transmit invoice data to IRAS.
• They should conduct system testing to ensure successful transmission

Benefits of GST InvoiceNow

1. Streamlined Processes: InvoiceNow enables direct transmission of e-invoices in a structured data format, reducing manual work in sending, receiving, and recording invoices. 
2. Reduced Errors and Costs: By automating invoice processing, InvoiceNow reduces the likelihood of errors in invoicing and payment. This leads to fewer rectification costs and improves overall efficiency.
3. Improved Cash Flow Management: Quicker invoice processing and payment facilitated by InvoiceNow help businesses manage their cash flow more effectively. 
4. Enhanced Compliance: By transmitting invoice data directly to IRAS, businesses streamline compliance processes and reduce the risk of errors in tax reporting.
5. Access to Value-Added Services: InvoiceNow solutions may offer additional services, such as built-in checks for incorrect GST charges from suppliers, helping businesses maintain compliance and optimise their operations

Additional benefits for GST-registered businesses for adopting InvoiceNow solutions 

1. Utilizing InvoiceNow solutions for transmitting invoice data to IRAS reduces compliance efforts for GST-registered businesses.
2. Improved risk analysis by IRAS may lead to fewer audits for businesses, with shorter audit processes and quicker issue resolution.
3. Businesses with lower risk profiles may receive GST refunds sooner.
4. InvoiceNow solutions offer value-added services, including built-in checks to identify invoices erroneously charging GST, thereby simplifying tax compliance.

Conclusion

Singapore has opted for the InvoiceNow network to streamline business processes and enhance tax compliance. Instead of using the term E-Invoicing (which is used globally), IRAS has used GST InvoiceNow to collect all invoice data.  This phased approach ensures a smooth transition, starting with voluntary early adoption and gradually expanding to include all newly incorporated and voluntary registrants. 

Through InvoiceNow, businesses can transmit invoice data seamlessly to IRAS for compliance and validation. 

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