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As Singapore continues to advance in its digitalisation efforts, businesses are expected to adopt new standards in tax compliance. Beginning in 2025, GST-registered businesses will be progressively required to transmit invoice data to IRAS via the InvoiceNow network. This marks a major shift in how GST reporting is managed and presents opportunities to enhance business efficiency and transparency. Here’s what you need to know.

What is InvoiceNow?

InvoiceNow is a nationwide e-invoicing network launched by the Infocomm Media Development Authority (IMDA) in 2019. It is based on the international Peppol framework and allows businesses to send and receive invoices in a structured digital format directly between accounting systems. This reduces manual processing, eliminates paper invoices, and improves data accuracy.

Key Benefits of Using GST InvoiceNow

1. Increased Efficiency
   Real-time data exchange minimises manual GST reporting and reduces input errors.
2. Improved Cash Flow
   Faster audit processing by IRAS may enable businesses to receive GST refunds more quickly.
3. Enhanced Fraud Prevention
   E-invoices provide a more reliable audit trail, helping to detect fraudulent activities and close tax compliance gaps.

Implementation Timeline: Phased Rollout

To allow sufficient preparation, the requirement to submit invoice data through InvoiceNow will be implemented in phases:

• From 1 May 2025: Soft launch phase begins. IRAS encourages all GST-registered businesses and those applying for GST registration on or after this date to begin using InvoiceNow.
• From 1 November 2025: Mandatory for newly-incorporated entities that voluntarily register for GST (i.e., companies incorporated within 6 months prior to applying for GST registration).
• From 1 April 2026: Mandatory for all new voluntary GST registrants, regardless of incorporation date.

Scope of GST InvoiceNow Requirements

1. Invoice Data Required to be Transmitted

Businesses are required to transmit invoice data for the following GST-reported transactions:

• • Standard-rated supplies
  • Zero-rated supplies
  • Exempt supplies
  • Standard-rated purchases
  • Zero-rated purchases

The types of documents that must be transmitted include, but are not limited to:

• • Tax invoices
  • Simplified tax invoices
  • Sales invoices
  • Serialised receipts
  • Debit notes and credit notes

Businesses may opt to transmit summarised data for simplified tax invoices issued via POS systems or for low-value purchases.

2. Transactions Excluded from Data Transmission

The following are excluded from the InvoiceNow transmission requirement:

• • Transactions deemed as supplies or purchases for GST reporting but with no actual supply/purchase taking place
    (e.g., deemed supplies, export of goods without sale, reverse charge)
  • Exempt financial services, digital token exchange/lending
  • Import permits for goods

3. Deadline for Submitting Invoice Data to IRAS

Invoice data must be transmitted to IRAS by the earlier of:

• • The GST return filing date; or
  • The due date of the GST return.

4. Entities Exempted from InvoiceNow Requirements

• • Overseas persons, including those registered under the Overseas Vendor Registration regime
  • Entities registered under the reverse charge mechanism

Preparing for GST InvoiceNow: What Should Businesses Do?

IRAS recommends the following steps for businesses:

Phase 1: Immediate Preparation

Step 1: Ensure your solution is InvoiceNow-Ready
Check if your current or planned accounting system is on IMDA’s list of pre-approved InvoiceNow solutions. Alternatively, you may use basic free solutions with InvoiceNow functionality.
Enterprises with in-house systems are advised to engage an IMDA-accredited Access Point provider for connectivity support.

Step 2: Register for a Peppol ID
Work with your solution or Access Point provider to register your business’s UEN on the SG Peppol Directory and obtain a Peppol ID.

Phase 2: From May 2025

Step 3: Ensure API connectivity to IRAS
Confirm that your InvoiceNow solution is connected to IRAS through a certified API integration, via your provider.

Step 4: Enable transmission and begin sending invoice data to IRAS
Collaborate with your provider to conduct tests and ensure successful transmission.
A buffer of 3 to 12 months is recommended for integration and testing.

Final Thoughts

The introduction of GST InvoiceNow represents a significant advancement in Singapore’s tax digitalisation journey. Beyond compliance, it offers businesses an opportunity to enhance invoicing efficiency and financial management. As the mandatory implementation deadlines approach, businesses are strongly encouraged to start planning early, assess system readiness, and leverage the transition period to ensure smooth adoption. Need guidance on adopting an InvoiceNow-ready solution or aligning with GST compliance updates? Contact us and our professional advisory team are ready for assistance.