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-Ready Solutions to send invoice data to IRAS for tax administration purpose. Invoices that are not issued using InvoiceNow (e.g. for sales made via point-of-sale systems) should also be recorded in InvoiceNow-Ready 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 for early adoption will commence from 1 May 2025. IRAS encourages all GST-registered businesses and businesses applying for GST registration on/after 1 May 2025 to transmit their invoice data to IRAS using InvoiceNow-Ready Solutions via the InvoiceNow network.

There are plans to progressively extend mandatory participation to new compulsory GST registrants and existing GST-registered businesses. We will continue to consult industry partners and carefully review the feedback received before announcing further details.

InvoiceNow-Ready Solutions

InvoiceNow-Ready Solutions are accounting and finance solutions 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-Ready 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 their InvoiceNow-Ready Solutions.

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

IRAS and IMDA are committed to help businesses navigate the regulatory requirements and embrace digital solutions.

• Businesses using IMDA-accredited InvoiceNow-Ready Solution Provider ("IRSP") may be eligible to apply for the Productivity Solutions Grant (PSG) and receive up to $30,000 for IT solutions and equipment, including InvoiceNow-Ready Solutions.
• We are also working closely with the IRSPs to provide Free-of-Charge (“FOC”) solution packages for businesses to adopt. These FOC solution packages aim to reduce the costs associated with complying to the GST InvoiceNow Requirement and the expenses related to integrating their existing system infrastructure with InvoiceNow. A list of IRSPs offering FOC solution packages for transmitting invoices to IRAS for GST administration purposes will be made available by May 2025.

Benefits of using InvoiceNow-Ready Solutions

Using InvoiceNow-Ready Solutions offer the following advantages:

1. Simplicity: A single solution of your choice for invoicing across different parties (including businesses and government) and tax compliance.
2. Efficiency: As a supplier, you can enjoy faster invoice issuance directly from your billing system. As a buyer, the invoice data goes directly into your accounting solution, reducing manual data entry and errors when keying the invoice into your accounting solution.
3. Reliability: Invoices are delivered over the secure InvoiceNow network based on the international Peppol standard.

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-Ready Solutions will help businesses fulfil these responsibilities.

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

GST-registered businesses that transmit invoice data to IRAS via InvoiceNow-Ready Solutions can benefit from reduced compliance efforts when preparing data for submission to IRAS.

With IRAS’ enhanced risk detection 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 their refunds earlier.

In addition, businesses can benefit from the value-added services provided by the InvoiceNow-Ready Solutions, which ease tax compliance. These services include built-in checks to detect invoices from suppliers that wrongly charge GST, thus helping businesses to avoid incorrect input tax claims.

Scope of GST InvoiceNow Requirement

Transactions where invoice data transmission is mandatory

Businesses are required to transmit to IRAS data on the following transactions that are reported in the GST return:

1. Standard-rated supplies
2. Zero-rated supplies
3. Exempt supplies
4. Standard-rated purchases
5. Zero-rated purchases

The invoice data to be transmitted includes data on an invoice or an equivalent document that serves as bill for payment (or adjustment of bill for payment) for supplies and purchases made. Examples of documents that serve as bill for payment include sales invoice, tax invoice, simplified tax invoice, serially numbered receipts, debit notes and credit notes.

Businesses can choose to aggregate supplies data from point-of-sale system, supplies where simplified tax invoices are issued, and petty cash purchases data before transmitting to IRAS.

Excluded transactions

Notwithstanding the above, invoice data on the following types of transactions are excluded from the scope of data collection and need not be transmitted to IRAS:

1. Transactions where there are no underlying supplies or purchases but are regarded as supplies or purchases to be reported solely for GST purposes. Examples include deemed supplies, goods exported without sales, reverse charge transactions
2. Exempt financial services, and exchange or loan of digital payment tokens
3. Import permits for importation of goods

The above replaces the draft scope of transactions in the draft e-Tax guide published during the Public Consultation. Please refer to the e-Tax Guide GST: Adopting GST InvoiceNow Requirement for GST-registered Businesses (PDF, 1024KB) for more details.

Due date for transmission of invoice data to IRAS

The invoice data must be transmitted to IRAS by the earlier of:

• The date on which the relevant GST return is filed; or
• The filing due date of the relevant GST return.

The “relevant GST return” refers to the GST return covering the prescribed accounting period when the date of the transaction occurs. 

The date of transaction is determined as follows:

¹  This generally covers situations where related parties choose to offset their accounts receivable/ payable in lieu of issuing invoices.

²  This is only for businesses that choose to claim input tax according to the date of posting/ processing of the suppliers’ invoices into the accounting system.

Illustration on the due date for transmission of invoice data to IRAS

Businesses excluded from GST InvoiceNow Requirement

The following groups of businesses will be exempted from the GST InvoiceNow Requirement (“Excluded Businesses”):

• Overseas entities (including Overseas Vendors that are liable to register for GST under the Overseas Vendor Registration (“OVR”) Pay-only regime and OVR full regime)
• Businesses that are liable to register for GST wholly due to the Reverse Charge regime

Please refer to the e-Tax Guide GST: Adopting GST InvoiceNow Requirement for GST-registered Businesses (PDF, 1024KB) for more details.

Preparing Early to Adopt InvoiceNow-Ready Solutions for the GST InvoiceNow Requirement

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

We recommend taking the following steps:

Step 1: Ensure that your solution is InvoiceNow-Ready

• 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 accredited InvoiceNow-Ready Solution Providers (“IRSP”) 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-accredited Access Point Provider (“AP”) to get connected to the InvoiceNow network.

Step 2: Register for InvoiceNow and obtain your Peppol ID

• Approach your IRSP and/or AP to register your business in the SG Peppol Directory with your UEN and obtain your Peppol ID. 

Step 3: Ensure that your business can transmit invoice data successfully to IRAS

• Enable the GST InvoiceNow submission feature and test your system.

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