New GST InvoiceNow Requirement for GST-registered Businesses
What is InvoiceNow?
InvoiceNow is the nationwide e-invoicing network that enables companies of all sizes to process invoices in a more efficient manner, reducing business costs and shortening payment cycles. InvoiceNow operates on the open standard Peppol framework, which directly transmits e-invoices in a standard digital format across different finance systems. It was introduced by the Infocomm Media Development Authority (IMDA) in 2019.
Phased Adoption of GST InvoiceNow Requirement
To allow businesses sufficient time to prepare, the GST InvoiceNow Requirement will be implemented progressively as follows:
- From 1 November 2025, for newly incorporated companies that register for GST voluntarily.
- From 1 April 2026, for all new voluntary GST-registrants, regardless of incorporation date or business constitution.
A soft launch will commence from 1 May 2025 for early adopters1 that wish to transmit invoice data to IRAS using InvoiceNow solutions.
1 Includes existing GST-registered businesses as well as any other businesses applying for GST registration on/after 1 May 2025.
Benefits of Adopting InvoiceNow Solutions
The transmission of invoice data to IRAS will be done seamlessly through Access Point providers (AP) via Application Programming Interface (API) technology. By transmitting invoice data directly to IRAS via the InvoiceNow network, GST-registered businesses can benefit from reduced compliance efforts when preparing data for submission to IRAS.
With IRAS’ better risk analysis capabilities, fewer businesses would potentially be selected for GST audits. Those selected for audits may also expect shorter audits and faster resolution of the audit issues. Businesses claiming GST refunds may receive refunds earlier, if assessed to be of lower risk.
Businesses can also use features within InvoiceNow solutions, like receiving alerts for wrongful GST charges from non-GST registered suppliers.
Preparing Early to Adopt GST InvoiceNow Solutions
Businesses are encouraged to come onboard early and plan ahead for the adoption of InvoiceNow solutions or make changes to their in-house accounting systems to be compatible with GST InvoiceNow Requirement. There are four steps:
Step 1: Ensure Your Solution is InvoiceNow-enabled
From now
Step 2: Register for InvoiceNow and Obtain Peppol ID
- Approach your solution provider and/or AP to register your business in the SG Peppol Directory with your UEN and obtain your Peppol ID.
Step 3: Ensure Your InvoiceNow Solution is Connected to IRAS’ System via API Technology
- Contact your solution provider and/or AP to ensure that your InvoiceNow solution is connected to IRAS via API.
Step 4: Activate Feature to Transmit Invoice Data to IRAS
- Work with your solution provider and/or AP to enable the feature for you to transmit invoice data to IRAS.
- Test your system implementation and ensure that you are able to transmit invoices to IRAS successfully.
Conclusion
The GST InvoiceNow Requirement is a significant step towards digitalising the tax administration process in Singapore. By adopting InvoiceNow solutions, GST-registered businesses can benefit from reduced compliance efforts, improved risk analysis, and faster GST refunds. We encourage businesses to come onboard early and plan ahead for the adoption of InvoiceNow solutions to ensure a smooth transition.
FAQs
Q: What is the phased adoption of GST InvoiceNow Requirement?
A: The phased adoption of GST InvoiceNow Requirement will start from 1 November 2025 for newly incorporated companies that register for GST voluntarily, and from 1 April 2026 for all new voluntary GST-registrants.
Q: What are the benefits of adopting InvoiceNow solutions?
A: Businesses can benefit from reduced compliance efforts, improved risk analysis, and faster GST refunds by adopting InvoiceNow solutions.
Q: How can businesses prepare for the adoption of InvoiceNow solutions?
A: Businesses can prepare by ensuring their solution is InvoiceNow-enabled, registering for InvoiceNow and obtaining a Peppol ID, ensuring their solution is connected to IRAS’ system via API technology, and activating the feature to transmit invoice data to IRAS.
Q: What is the deadline for businesses to adopt InvoiceNow solutions?
A: The deadline for businesses to adopt InvoiceNow solutions is not specified, but it is recommended that businesses come onboard early to ensure a smooth transition.
