Singapore e-Invoicing - GST InvoiceNow Requirement

On 15 April 2024, the Inland Revenue Authority of Singapore (“IRAS”), announced the mandatory adoption of e-invoicing (called InvoiceNow) for newly GST-registered companies, with the possibility of it being rolled out to all other GST-registered businesses.

A draft e-tax guide regarding the adoption of InvoiceNow requirements for GST-registered businesses was published by IRAS in June. Once finalized, this e-tax guide will provide more clarity for businesses adopting e-invoicing using InvoiceNow.

What is InvoiceNow?

InvoiceNow is Singapore’s e-invoicing network based on an international standard called “Peppol”. It was introduced by the Infocomm Media Development Authority (“IMDA”) in 2019. InvoiceNow enables businesses to easily send and receive invoices in a structured digital format.

Under InvoiceNow, there is a direct transmission of invoice data in a structured digital format from the finance system of the supplier to the finance system of the customer through the Peppol network. This digital invoicing method reduces the need for manual processing and recording of invoices in accounting systems, which helps businesses avoid tedious work and errors.

Who is required to implement InvoiceNow?

IRAS is implementing a phased rollout of InvoiceNow for GST-registered businesses.

Early adoption of GST-registered businesses that wish to opt-in – from 1 May 2025
Newly incorporated companies (i.e., companies that are incorporated within 6 months from the time they submit their application for GST registration) that voluntarily apply for GST registration – from 1 November 2025
All businesses that voluntarily apply for GST registration – from 1 April 2026
Rest of the GST-registered businesses – to be advised

Exemptions

Overseas entities including vendors that are registered under the Overseas Vendor Registration (“OVR”) regime, and businesses registered under the Reverse Charge regime are exempted from the InvoiceNow requirements.

What does InvoiceNow cover?

Transactions where invoice data transmission is mandatory under the GST InvoiceNow Requirement include:

- 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).

For point-of-sale (“POS”) supplies and petty cash purchases data, businesses can choose to aggregate the transactions before the transmission.
The transmission due date is at the earlier of the date in which the relevant GST return is filed or the filing due date of the relevant GST return.

How can you prepare for InvoiceNow?

It is important for all GST registered businesses to understand the GST InvoiceNow Requirement and to assess how the requirements might affect them.

Businesses should consider the following and evaluate the extent of changes required with respect to their systems, data, and GST treatment. This includes assessing whether the existing system is GST InvoiceNow ready, or if modifications are required; whether all the mandatory data elements that are to be reflected on the invoice are available and to review the data collection process; and whether the existing GST treatment for transactions is correctly determined and mapped for the invoices issued/received.

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