e-Invoicing in Singapore: Applicability, Limit, Guidelines & Implementation Date

The Inland Revenue Authority of Singapore (IRAS) announced the soft launch of e-invoicing in Singapore under the GST InvoiceNow Requirement, starting in May 2025, for voluntary early adoption. From 1 November 2025, compliance with this e-invoicing mandate will become mandatory for newly incorporated companies that voluntarily register for GST, with further phased implementation planned for all GST-registered businesses.

This initiative requires GST-registered businesses to transmit invoice data directly to IRAS for tax administration purposes through Singapore's nationwide e-invoicing system, based on the international Peppol standard. 

All businesses under the scope must adopt e-invoicing solutions connected to the InvoiceNow network, enabling seamless data transmission to IRAS via API-enabled Access Point providers. This transition aims to streamline compliance, reduce manual efforts, and facilitate structured digital invoice processing.

What is an e-Invoice in Singapore?

An e-Invoice in Singapore refers to an electronic invoice transmitted digitally through the InvoiceNow network, a nationwide e-invoicing platform based on the international Peppol standard. It facilitates seamless, structured, and automated data exchange between businesses' finance systems.

Singapore e-Invoice Implementation Timeline

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.

Exemptions from the Singapore e-Invoicing

• Overseas Entities including Overseas Vendors: Parties that are registered under the Overseas Vendor Registration regime and overseas vendors are exempt from e-invoicing. 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.

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. 

Requirements for e-Invoicing in Singapore

To comply with Singapore's GST InvoiceNow Requirement for GST-registered businesses, the following criteria must be met:

1. Use of InvoiceNow Solutions
   Businesses are required to adopt finance and accounting software that is compatible with the InvoiceNow network, adhering to the Peppol international standard for seamless e-invoicing.
2. Mandatory Registration
   Companies must register for InvoiceNow through IMDA, secure a Peppol ID, and ensure they are listed in the SG Peppol Directory. This establishes their ability to send and receive e-invoices across the network.
3. Mandatory Data Elements (MDEs)
   Submissions through InvoiceNow must include essential information such as supplier and customer details, GST amounts, GST codes, and invoice numbers. These align with the existing GST regulations to ensure compliance.
4. Technical Compliance
   Businesses must verify that their chosen solutions are connected to IRAS via API technology. This integration enables real-time transmission of invoices and facilitates built-in GST validations, such as checking the validity of GST registration numbers (GSTNs).
5. Timely Data Transmission to IRAS
   The timing for sending invoice data to IRAS is directly linked to the GST return filing schedule. Businesses must transmit invoice data:

• On the date the relevant GST return is filed, or
• By the filing due date of the GST return,
  whichever occurs earlier. This ensures that IRAS receives accurate and timely data, streamlining tax administration and compliance efforts.

Major Stakeholders for e-Invoicing in Singapore

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.

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 early adopt GST InvoiceNow

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

Potential Challenges of Implementing e-Invoicing in Singapore

E-invoicing is an incredibly efficient process, but it does present certain challenges due to its technical nature, which is more complex than traditional invoicing methods.

1. Adoption Hesitation: Small and medium enterprises (SMEs) may be reluctant to adopt e-invoicing due to perceived high costs and changes to established workflows.
2. Integration Complexity: Businesses using custom or legacy accounting systems may face challenges in integrating InvoiceNow with their existing setups.
3. Training Requirements: Staff need training on using e-invoicing systems, which can be time-consuming and costly.
4. Data Security Concerns: Ensuring data security and compliance with privacy laws may pose challenges for businesses.
5. Vendor Readiness: Not all suppliers and customers may be ready or willing to adopt the InvoiceNow network voluntarily in the early phase
6. Initial Setup Costs: While grants are available, businesses may still find the initial costs for implementation and system upgrades burdensome.

How ClearTax Can Help Your Business with e-Invoicing in Singapore

ClearTax offers robust e-invoicing software in Singapore that is tailored to meet the needs of businesses transitioning to e-invoicing in Singapore. Here's how it can assist:

• Seamless Integration: ClearTax’s platform integrates effortlessly with existing accounting and ERP systems.
• Compliance Assurance: It ensures compliance with Singapore’s e-invoicing and GST regulations, reducing the risk of errors and penalties.
• Maximum Automation: ClearTax e-invoicing software  automates the generation, validation, and transmission of e-invoices via the InvoiceNow network, reducing manual effort.
• Dedicated Online Portal: Features an intuitive online portal to issue, receive, track, and manage e-invoice and generate detailed reports.
• Training & Support: Provides user-friendly training modules and dedicated support for smooth onboarding and continued assistance.

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

The Singapore government’s e-invoicing mandate, built on the InvoiceNow network powered by the global Peppol standard, marks a major step in modernizing tax administration for GST-registered businesses. By mandating e-invoice Singapore adoption, the Singapore government has ensured seamless integration of tax compliance into daily business operations, aligning with global trends in digital tax systems.

Early adopters can benefit from grants like the Productivity Solutions Grant and LEAD Connect & Transact Grant, helping offset costs reducing cost of implementation. ClearTax can help businesses for smooth transitions, enabling compliance with the Singapore e-invoicing IRAS requirements.