The Inland Revenue Authority of Singapore (IRAS) has officially confirmed the phased rollout of e-invoice data reporting via the InvoiceNow network, effective from March 7, 2025.
This initiative facilitates Peppol-based structured transmission of invoices between businesses and mandates the submission of invoice data to IRAS ahead of the next GST return period, following a 5-corner e-invoice model. The rollout schedule for domestic-only businesses is as follows:
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May 1, 2025: Soft launch for voluntary early adoption by GST-registered businesses.
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November 1, 2025: Requirement for newly incorporated companies registering for GST voluntarily.
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April 1, 2026: Mandate for all new voluntary GST registrants.
Introduced in 2019, the IRAS InvoiceNow network is built on the Peppol standard, allowing businesses to easily exchange invoices in a structured digital format. Businesses can report via InvoiceNow through various methods, including:
- InvoiceNow-Ready Solutions: Off-the-shelf accounting packages that will connect to IRAS through Access Points (AP). A list of approved InvoiceNow-Ready Solutions compatible with IRAS will be published by IMDA by May 2025.
- Custom ERP System Adaptations: Businesses may also adapt their existing ERP systems to interface with InvoiceNow.
It is crucial for businesses that issue invoices outside of InvoiceNow (for instance, sales conducted through point-of-sale systems) to also record these transactions in InvoiceNow-Ready Solutions and submit them to IRAS.
December 2023 Update: B2G Peppol InvoiceNow Adoption
Following a successful pilot on the InvoiceNow e-invoicing platform in October, the IRAS has confirmed the adoption of the Peppol e-invoicing standard for Business-to-Government (B2G) transactions.
A significant achievement of this pilot was the successful transition of InvoiceNow from its existing 4-corner model to a 5-corner model using Peppol. While it is currently mandatory for B2G transactions, the government seeks to enhance compliance through InvoiceNow by collaborating with IMDA, the Accountant-General’s Department, and the business community to drive greater acceptance for GST administration.
The pilot's findings have demonstrated that InvoiceNow can lead to increased productivity by digitizing invoicing processes. Businesses can expect enhanced GST compliance, fewer audits, and expedited GST refunds. Moreover, InvoiceNow also supports cross-border transactions with entities in jurisdictions connected to the Peppol network.
February 2023 Announcement: Future of B2G E-Invoicing
The Singaporean government announced plans to mandate B2G e-invoicing under the InvoiceNow framework, although a specific deadline has yet to be established. Currently, nearly all B2G transactions are processed through InvoiceNow, underscoring its growing importance.
Singapore was the first country outside Europe to adopt the Peppol standard in 2019. InvoiceNow operates as a voluntary government service, promoting the exchange of structured invoices within an interoperable e-invoicing framework. It is accessible to any business using Peppol-enabled invoicing systems, and while no information is transmitted to IRAS during the invoice exchange between parties, invoices processed through InvoiceNow are recognized as tax invoices and accepted by the IRAS for GST deductions.
It is important to note that B2C invoices fall outside the scope of the InvoiceNow initiative.
Conclusion
The phased implementation of InvoiceNow e-invoicing marks a significant development in Singapore's GST administration and invoicing standardization. Businesses are encouraged to prepare for these upcoming changes to ensure compliance and harness the benefits of digital invoicing.
