SINGAPORE: The Inland Revenue Authority of Singapore (IRAS) will begin a phased implementation of the InvoiceNow system for GST-registered businesses, starting in November 2025. This new GST InvoiceNow Requirement will initially target newly incorporated businesses that voluntarily register for GST, mandating them to use InvoiceNow solutions to transmit invoice data to IRAS for tax purposes. Concurrently, the Infocomm Media Development Authority (IMDA) will extend the benefits of InvoiceNow to newly incorporated businesses under its InvoiceNow Accelerate program starting this month. This collaborative effort aims to boost the adoption of InvoiceNow and enhance business efficiency and tax compliance.
InvoiceNow Network and Services
Launched in 2019, InvoiceNow utilizes the international Peppol standard to facilitate the structured digital exchange of invoices between suppliers and buyers. This improves productivity in invoice processing, speeds up payment cycles, and reduces paper usage. Currently, over 60,000 businesses are part of the InvoiceNow network, using a variety of services ranging from free e-invoicing portals to comprehensive accounting solutions and customized systems.
Implementing the InvoiceNow Requirement for GST-Registered Businesses
GST-registered businesses will be required to use InvoiceNow solutions to transmit invoice data directly to IRAS, starting with a voluntary early adoption phase in May 2025. Data transmission will be facilitated through Access Point (AP) providers using Application Programming Interface (API) technology.
The GST InvoiceNow Requirement will be rolled out as follows:
- From 1 May 2025: Voluntary early adoption by GST-registered businesses.
- From 1 November 2025: Mandatory for newly incorporated companies that voluntarily register for GST.
- From 1 April 2026: Mandatory for all new voluntary GST registrants.
Adopting InvoiceNow will aid businesses in fulfilling their GST responsibilities by streamlining record-keeping, billing, and payment processes. It particularly benefits new GST-registered businesses by establishing proper practices from the start.
By using InvoiceNow, businesses can streamline compliance, reduce data preparation efforts for IRAS submissions, and receive faster GST refunds. Additionally, features within InvoiceNow solutions can alert businesses to incorrect GST charges from non-GST registered suppliers.
This phased implementation follows a pilot program conducted from September 2020 to June 2023, involving businesses like Sheng Siong Group Ltd and Evergreen Group Pte Ltd. IRAS will continue consulting industry partners and reviewing feedback before detailing requirements for all GST-registered businesses. For further information, businesses can refer to the IRAS webpage or seek support from IRAS or IMDA.
Free InvoiceNow Services for Newly Incorporated Businesses
To support newly incorporated businesses in their digitalization efforts, IMDA has collaborated with service providers to offer one year of free InvoiceNow services under the InvoiceNow Accelerate program. Starting in April 2024, eligible businesses can choose their preferred service provider after claiming their CorpPass.
IMDA is continuously enhancing the InvoiceNow network with additional services. These include new business document types like electronic Purchase Orders and Invoice Responses, further digitalizing the procure-to-pay process. To facilitate seamless cross-border transactions, IMDA has introduced Peppol International (PINT) specifications, allowing businesses to send e-invoices without adapting them to the recipient’s domestic standards, benefiting those engaged in international trade.
Source: IRAS
