Introduced in 2019, InvoiceNow is a nation-wide e-invoicing network which enables businesses to easily send and receive invoices in a structured digital format. InvoiceNow solutions are finance and accounting software that allow the transmission of invoices between businesses via the InvoiceNow network.
On 15 April 2024, the Inland Revenue Authority of Singapore (“IRAS“) and the Infocomm Media Development Authority (“IMDA“) announced that from November 2025, Goods and Services Tax (“GST“)-registered businesses will progressively be required to use InvoiceNow solutions to transmit invoice data to IRAS for tax administration purposes (“Requirement“).
By transmitting invoice data directly to IRAS via the InvoiceNow network, GST-registered businesses can streamline their compliance processes, reduce errors and costs, facilitate quicker invoicing processing and payment, and enjoy faster GST refunds.
Scope
Businesses under the Requirement must transmit invoice data on the following transactions to IRAS:
(a) Standard-rated supplies (excluding reverse charge supplies);
(b) Zero-rated supplies; and
(c) Standard-rated purchases on which input tax claims are or will be made (excluding 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.
Exemption
The following groups of businesses are exempted from the Requirement:
(a) Overseas entities (including overseas vendors registered under the Overseas Vendor Registration regime); and
(b) Businesses registered under the Reverse Charge regime.
Timeframe of Implementation
To allow businesses sufficient lead time to prepare, the Requirement will be implemented as follows:
(a) From 1 May 2025, for voluntary early adoption by all GST-registered businesses as a soft launch.
(b) From 1 November 2025, for newly incorporated companies that register for GST voluntarily.
(c) From 1 April 2026, for all new voluntary GST-registrants.
For the remaining GST-registered businesses, IRAS will continue to consult industry partners on the initiative and carefully review the feedback received before announcing further details.
Assistance for Businesses
From April 2024, newly incorporated businesses (defined as companies that are incorporated within six months from the time they submit their application for GST registration) that have registered for the InvoiceNow Accelerate Programme will be able to access one year of free InvoiceNow services.
IMDA has also introduced a number of grants, such as the LEAD Connect & Transact Grant and InvoiceNow Transaction Bonus.
Click on the following links for more information (available on the IRAS website at www.iras.gov.sg):
