Why Businesses Should Adopt InvoiceNow Before It Becomes Mandatory

Singapore’s push towards digitalization has led to the introduction of InvoiceNow, a nationwide e-invoicing initiative. While its adoption will become mandatory in phases starting from November 2025, there are compelling reasons for businesses to embrace InvoiceNow early.

Understanding InvoiceNow

InvoiceNow is Singapore’s implementation of the international Peppol e-invoicing standard. It allows businesses to send and receive invoices directly between their accounting systems through a secure and standardized network. This streamlines invoicing processes, reduces errors, and enhances efficiency.

Upcoming Mandatory Requirements

The GST InvoiceNow Requirement mandates GST-registered businesses to transmit invoice data to IRAS using InvoiceNow-Ready Solutions via the InvoiceNow network. The implementation timeline is as follows:

• 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 Early Adoption

1. Streamlined Processes: Automating invoicing reduces manual data entry, minimizes errors, and accelerates transaction times.
2. Enhanced Compliance: Real-time transmission of invoice data to IRAS ensures timely and accurate GST reporting.
3. Improved Cash Flow: Faster invoice processing can lead to quicker payments, enhancing cash flow management.
4. Competitive Advantage: Early adopters position themselves as forward-thinking businesses, potentially attracting more clients and partners.
5. Access to Support and Grants: Early adopters may benefit from government support, including grants and free-of-charge solution packages to ease the transition.

Common Misconceptions

• “It’s only for large businesses.”
  Fact: InvoiceNow is designed for businesses of all sizes, including SMEs.
• “Implementation is complex and costly.”
  Fact: With the availability of subsidized InvoiceNow-Ready Solutions, the transition can be smooth and affordable.
• “It’s not mandatory yet, so we can wait.”
  Fact: Early adoption allows businesses to iron out any issues before the requirement becomes mandatory, ensuring a smoother transition.

Steps to Adopt InvoiceNow

1. Select an InvoiceNow-Ready Solution: Choose an accounting or finance solution integrated with InvoiceNow capabilities. For instance, Million software and AutoCount software.
2. Activate the GST InvoiceNow Submission Feature: Enable this feature in your chosen solution to transmit invoice data to IRAS.
3. 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 ahead of the mandatory timeline not only ensures compliance but also brings operational efficiencies and financial benefits. Embracing this digital transformation positions your business for sustained growth in Singapore’s evolving economic landscape. 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.