This briefing document outlines the key themes, ideas, and facts related to implementing the GST InvoiceNow requirement in Singapore, as outlined in the provided resources of “Singapore GST InvoiceNow: Business Guide” and “Singapore: InvoiceNow Project for Electronic Invoicing via Peppol | EDICOM Global”. Both documents highlight the transition to electronic invoicing through the Peppol network and the associated obligations for GST-registered companies.
Main points and main ideas:
1. What is InvoiceNow? Both sources define InvoiceNow as Singapore’s national e-invoicing “framework”, based on the “Peppol standard”. It facilitates the “exchange invoices digitally” in a structured format, allowing invoices to be sent directly from one accounting system to another “without manual intervention” (Singapore GST InvoiceNow: Business Guide). EDICOM emphasizes that in 2019, Singapore became the first country outside Europe to use the Peppol network for B2B e-invoicing.
2. Purpose of InvoiceNow: The primary goal is to increase efficiency, reduce costs, speed up payment cycles, and reduce errors. In addition, it helps businesses comply with the “IRAS tax submission requirements” (Singapore GST InvoiceNow: Business Guide). EDICOM adds that InvoiceNow increases the potential for electronic document management automation.
3. Implementation timeline (confirmed by both sources): The adoption of the GST InvoiceNow requirement will be phased:
- May 1, 2025 (Soft Launch): Existing GST-registered businesses and new voluntary registrations can “choose to transmit invoice data to IRAS as early adopters.” (Singapore GST InvoiceNow: Business Guide).
- 1 November 2025: “Newly incorporated companies (within six months of incorporation) that apply for voluntary GST registration must comply with the requirement.” (Singapore GST InvoiceNow: Business Guide).
- April 1, 2026: “All new voluntary GST registrants, regardless of incorporation date, must comply with the requirement.” (Singapore GST InvoiceNow: Business Guide).
- Future Expansion: IRAS expects to gradually expand the requirement to all GST-registered companies in the future.
4. How does InvoiceNow work? Both sources describe the “four-corner model, extended with a fifth corner to facilitate invoice data transmission to IRAS” (Singapore GST InvoiceNow: Business Guide), also known as Peppol CTC (5-corner) (EDICOM). The process includes:
- Vendor creates an invoice through an InvoiceNow-Ready Solution and sends it through an “Access Point Provider (AP)” (Singapore GST InvoiceNow: Business Guide). EDICOM is accredited by the Infocomm Media Development Authority (IMDA) as an Access Point.
- The invoice is routed via the Peppol network to the “customer’s Access Point” (Singapore GST InvoiceNow: Business Guide).
- The invoice is registered in the “customer’s InvoiceNow-Ready accounting system” (Singapore GST InvoiceNow: Business Guide).
- “IRAS receives a copy of the invoice data automatically for tax administration.” (Singapore GST InvoiceNow: Business Guide). EDICOM states that invoices are exchanged in the structured “PINT SG format”, with a copy sent to IRAS.
For invoices outside the InvoiceNow network (“paper invoices, PDF invoices,”), companies must manually record the data and send it to IRAS (Singapore GST InvoiceNow: Business Guide).
5. Who must comply? The GST InvoiceNow requirement applies to:
- “Newly incorporated companies registering for GST voluntarily from November 1, 2025.” (Singapore GST InvoiceNow: Business Guide).
- “All voluntary GST registrants from April 1, 2026.” (Singapore GST InvoiceNow: Business Guide).
- “Businesses opting in early from May 1, 2025.” (Singapore GST InvoiceNow: Business Guide).
Exceptions:
- “Overseas entities” (Singapore GST InvoiceNow: Business Guide).
- “Businesses liable for GST registration solely due to Reverse Charge rules.” (Singapore GST InvoiceNow: Business Guide).
6. Type of invoice data to be submitted: GST registered businesses must submit invoice data that corresponds to the GST return, including (but not limited to):
- Standard taxed deliveries: Local sales of goods and services, supplies under the “Gross Margin Scheme (GMS)”, or “Customer Accounting transactions.”
- Zero-Rate Deliveries: Exported goods, international services.
- Exempt Supplies: Sale or rental of residential properties, investment in precious metals.
- Standard taxed purchases: Business purchases with GST claims, purchases under “Customer Accounting.”
- Zero-rate purchases: International freight charges, imported goods under zero-tariff conditions.
Transactions excluded from the scope:
- Deemed Supplies
- Reverse Charge Transactions
- Out-of-Scope Supplies
- Purchases from non-GST-registered suppliers
7. Method of data transfer to IRAS: Invoice data must be submitted via the Peppol method: “A copy of the invoice data is automatically sent to IRAS.” (Singapore GST InvoiceNow: Business Guide).
8. Indeadlines: Invoice data must be sent to IRAS “no later than: The date of the GST return submission OR The filing due date of the GST return.” (Singapore GST InvoiceNow: Business Guide).
9. Handling of Credit Notes and Invoice Adjustments:
- Credit notes must also be sent to IRAS.
- In the case of invoice errors that do not affect the monetary values, a corrected invoice with the same “Document UUID” can be submitted (Singapore GST InvoiceNow: Business Guide).
10. System Validation Checks: InvoiceNow-Ready Solutions will perform validation checks to prevent errors, such as checking the correct format, detecting wrongful GST charges, and preventing duplicate or incorrect submissions (Singapore GST InvoiceNow: Business Guide).
11. Benefits of InvoiceNow (highlighted by EDICOM):
- Reduced Manual Work: Receive invoices in one standard electronic format, no manual data entry.
- Decreased Error Handling: Automated transfer minimizes erroneous input.
- New opportunities for vendor management: Possibility of discounts for quick payment and online status updates for suppliers.
12. Role of IMDA and Access Points: The IMDA is the Peppol Authority in Singapore, responsible for allocating access points and defining technical specifications. Companies that want to invoice electronically must have an accredited access point and an e-invoicing system that supports the Peppol standard (EDICOM).
13. New Document Types (InvoiceNow Updates): IMDA has introduced two new document types to the InvoiceNow network:
- Purchase Order: Allows buyers to send electronic orders directly to suppliers.
- Invoice Response: Allows buyers to inform suppliers about the status of their invoices (EDICOM).
Conclusion: The implementation of Singapore GST InvoiceNow is an important step in the digitalization of tax compliance in Singapore. The phased approach offers companies the opportunity to prepare for the new requirements. In particular, newly established companies that voluntarily register for GST will be the first to be required to use InvoiceNow. Companies should familiarize themselves with the Peppol standard, InvoiceNow-Ready solutions, and the deadlines to ensure a smooth transition. The sources highlight the benefits of e-invoicing, including increased efficiency, cost savings, and more accurate data exchange.
Businesses are advised to consult the full “IRAS e-Tax Guide on InvoiceNow compliance“ and to contact accredited Access Point Providers such as EDICOM to prepare their systems for the new requirements in a timely manner.
- See also
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
