GST InvoiceNow Requirement

Overview of GST InvoiceNow Requirement

InvoiceNow is the nationwide 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. 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. Refer to IMDA’s webpage on InvoiceNow for more information.

To support the nationwide InvoiceNow initiative, and as part of our ongoing transformation efforts to digitalise with the wider ecosystem and integrate tax into taxpayers’ accounting and payroll systems, GST-registered businesses will be required to use InvoiceNow solutions to send invoice data to IRAS for tax administration. Invoices that are not issued using InvoiceNow (e.g. for sales made via point-of-sale systems) should also be recorded in InvoiceNow solutions and sent to IRAS.

This is in line with international trends, with governments worldwide actively promoting the adoption of e-invoicing for tax administration. The phased adoption of the GST InvoiceNow Requirement follows a pilot by IRAS, IMDA, businesses and service providers between September 2020 and June 2023.

Phased adoption of GST InvoiceNow Requirement

To allow businesses sufficient lead time to prepare, the GST InvoiceNow Requirement will be implemented in a calibrated and progressive manner as follows:

• From 1 November 2025, for newly incorporated companies¹ that register for GST voluntarily. 

¹ These are companies that are incorporated within 6 months from the time they submit their application for GST registration.

• From 1 April 2026, for all new voluntary GST-registrants, regardless of incorporation date or business constitution. 

This Requirement will be implemented as an additional condition for voluntary registration.

A soft launch will commence from 1 May 2025, allowing any existing GST-registered businesses that wish to be early adopters to transmit invoice data to IRAS using InvoiceNow solutions via InvoiceNow network.

There are plans to progressively implement the GST InvoiceNow Requirement for the remaining GST-registered businesses. We will continue to consult industry partners and carefully review the feedback received before announcing further details.

InvoiceNow Solutions

InvoiceNow solutions are finance and accounting software that allow the transmission of invoices between businesses via the InvoiceNow network. They can be purchased off-the-shelf or be customised specifically for businesses in the form of proprietary enterprise resource planning systems.

InvoiceNow solutions will be connected to IRAS through Access Points (AP). This connection will enable the transmission of invoice data to IRAS via Application Programming Interface (API) technology. When businesses activate the feature to transmit invoice data to IRAS, IRAS will receive a copy of the invoice data whenever businesses issue or receive invoices via the InvoiceNow network, or when they record other invoices into the InvoiceNow solutions.

IMDA will publish the list of InvoiceNow solutions that are connected to IRAS by May 2025.

To help businesses defray the cost of adoption and utilisation of InvoiceNow, IMDA has introduced a variety of grants, such as the LEAD Connect & Transact Grant and InvoiceNow Transaction Bonus. InvoiceNow solutions are also eligible for co-funding under the Productivity Solutions Grant. Refer to the IMDA website for more information on InvoiceNow grants.

IMDA and IRAS are reviewing the need for further support and measures to ease tax compliance, and will provide more details at a later date.

Benefits of using InvoiceNow Solutions

Using InvoiceNow solutions offer the following advantages:

1. Streamlined processes: InvoiceNow solution enables direct transmission of e-invoices in a structured data format across different finance systems, thereby eliminating manual work involved in the sending, receipting and recording of invoices into systems.
2. Reduced errors and costs: InvoiceNow solution reduces manual processes, along with errors and rectification costs. With invoice records maintained electronically, it also reduces invoice storage and retrieval costs.
3. Improved cashflow management: InvoiceNow facilitates quicker invoice processing and payment, helping businesses to more effectively manage their cashflow.

Ultimately, streamlining and automating these processes allow businesses to focus on core priorities, including growth and innovation.

GST-registered businesses are required to maintain good record-keeping controls and accounting processes. Adopting InvoiceNow solutions will help businesses fulfil these responsibilities.

Additional benefits for GST-registered businesses for adopting InvoiceNow solutions to transmit invoice data to IRAS

GST-registered businesses that transmit invoice data to IRAS via InvoiceNow solutions 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 also receive refunds earlier, if assessed to be of lower risks.

In addition, businesses would have access to the array of value-added services provided by the InvoiceNow solutions, which help to ease tax compliance. These services include built-in checks to detect invoices from suppliers that wrongly charge GST, thus helping businesses avoid incorrect input tax claims.

Scope of GST InvoiceNow Requirement

Transactions where invoice data transmission is mandatory

Businesses under the GST InvoiceNow Requirement are required to transmit to IRAS invoice data relating to the following transactions:

1. Standard-rated supplies²
2. Zero-rated supplies
3. Standard-rated purchases on which input tax claims are made or will be made³

² Excludes reverse charge supplies.
³ Excludes reverse charge purchases.

For point-of-sale supplies data and petty cash purchases data, businesses can choose to aggregate the transactions before transmitting to IRAS.

Due date for transmission of invoice data to IRAS

Invoice data is to be transmitted to IRAS at the earlier of:

• The date in which the relevant GST return⁴ is filed, or
• The filing due date of the relevant GST return⁴

⁴ A relevant GST return means the GST return with an accounting period pertaining to the time of supply of the invoice issued/ the date shown on the supplier’s tax invoice.

Businesses excluded from GST InvoiceNow Requirement

The following groups of businesses will be exempted from the GST InvoiceNow Requirement:

• Overseas entities (including overseas vendors that are registered under the Overseas Vendor Registration regime)
• Businesses registered under the Reverse Charge regime

Refer to the draft e-Tax Guide GST: Adopting InvoiceNow Requirement for GST-registered Businesses (PDF, 939KB) for more details.

Preparing Early to Adopt GST InvoiceNow Solutions

We encourage businesses to come onboard early and plan ahead for the adoption of InvoiceNow solutions or make changes to your in-house accounting systems to be compatible with GST InvoiceNow Requirement.

We recommend taking the following 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 your own in-house solutions, get in touch with an IMDA pre-approved Access Point Provider to help you to connect to the InvoiceNow network.

Step 2: Register for InvoiceNow and Obtain your Peppol ID

• Approach your Solution Provider and/or Access Point Provider to register your business in the SG Peppol Directory with your UEN and obtain your Peppol ID. 

Step 3: Ensure that your InvoiceNow solution is connected to IRAS’ System via API

• Contact your Solution Provider and/or Access Point Provider to ensure that your InvoiceNow solution is connected to IRAS via API.

Step 4: Activate feature and transmit invoice data to IRAS

• Work with your Solution Provider and/or Access Point Provider 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.

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