In Singapore’s ongoing journey towards digital transformation, the Inland Revenue Authority of Singapore (IRAS) and the Infocomm Media Development Authority (IMDA) have introduced InvoiceNow, a nationwide e-invoicing initiative. This system is designed to streamline invoicing processes and enhance Goods and Services Tax (GST) compliance for businesses.
Understanding InvoiceNow
InvoiceNow is Singapore’s implementation of the international Peppol e-invoicing standard. It enables businesses to send and receive invoices directly between their accounting systems through a secure and standardized network. This eliminates the need for manual data entry, reduces errors, and accelerates the invoicing process.
The GST InvoiceNow Requirement
To support the nationwide InvoiceNow initiative and integrate tax into taxpayers’ accounting systems, IRAS has introduced the GST InvoiceNow Requirement. This mandates GST-registered businesses to transmit invoice data to IRAS using InvoiceNow-Ready Solutions via the InvoiceNow network.
Phased Implementation Timeline
- 1 May 2025: Soft launch for voluntary early adoption.
- 1 November 2025: Mandatory for newly incorporated companies (incorporated within 6 months) that register for GST voluntarily.
- 1 April 2026: Mandatory for all new voluntary GST registrants, regardless of incorporation date or business structure.
Note: There are plans to progressively extend mandatory participation to new compulsory GST registrants and existing GST-registered businesses. IRAS will continue to consult industry partners before announcing further details.
Benefits of Adopting InvoiceNow
- Simplified Invoicing Process: A single solution for invoicing across different parties, including businesses and government agencies, streamlining tax compliance.
- Enhanced Efficiency: Faster invoice issuance directly from billing systems and direct integration into buyers’ accounting solutions, reducing manual data entry and errors.
- Improved Reliability: Secure delivery of invoices over the InvoiceNow network, based on the international Peppol standard.
- Better Compliance: Shorter GST audits, faster refunds, and auto alerts for wrongful GST charges from non-GST registered suppliers (feature provided by some InvoiceNow-Ready Solution Providers).
Getting Started with InvoiceNow
To adopt InvoiceNow:
- Choose an InvoiceNow-Ready Solution: Select an accounting or finance solution that is integrated with InvoiceNow capabilities. For instance, Million software and AutoCount software.
- Activate the GST InvoiceNow Submission Feature: Enable this feature in your chosen solution to transmit invoice data to IRAS.
- Test the System: Ensure successful transmission of invoice data to IRAS by conducting tests. Contact your solution provider or Access Point (AP) if assistance is needed.
For businesses with existing accounting or finance solutions, or those planning to purchase one, it’s advisable to check whether the preferred solution is listed on IMDA’s accredited InvoiceNow-Ready Solution Providers (IRSP) list. Businesses may also consider adopting free solutions with basic InvoiceNow capabilities.
Conclusion
Adopting InvoiceNow not only aligns your business with Singapore’s digital transformation goals but also enhances your GST compliance processes. By integrating invoicing and tax reporting, businesses can achieve greater efficiency, accuracy, and reliability in their operations. Feel free to reach out to Rockbell at (65) 6469 7720 / (65) 8889 1140 or email us at sales@rockbell.com.sg, we are here to assist you.