Singapore Revenue Authority Announces GST InvoiceNow Requirement
On 15 April 2024, the Inland Revenue Authority of Singapore (IRAS) introduced the GST InvoiceNow requirement, which mandates that GST-registered businesses transmit invoice data directly to the IRAS through InvoiceNow solutions.
Phased Implementation
To provide businesses with ample time for adoption, the GST InvoiceNow Requirement will be rolled out in phases:
- From 1 May 2025: A soft launch will allow all existing GST-registered businesses to voluntarily transmit invoice data to the IRAS using InvoiceNow solutions via the InvoiceNow network.
- From 1 November 2025: Newly incorporated companies that voluntarily register for GST will be required to use InvoiceNow. This applies to businesses incorporated within six months of their GST registration.
- From 1 April 2026: The system will be compulsory for all new voluntary GST registrants, regardless of when their company was incorporated.
The GST InvoiceNow Requirement will become an additional condition for voluntary GST registration.
Exemptions
Certain businesses will be exempt from the GST InvoiceNow Requirement, including:
- Overseas entities (including those registered under the Overseas Vendor Registration regime)
- Businesses under the Reverse Charge regime
- Businesses not required to transmit invoice data under GST InvoiceNow
Invoice Data Transmission
Businesses under the GST InvoiceNow Requirement must transmit invoice data related to the following types of transactions:
- Standard-rated supplies (excluding reverse-charge supplies)
- Zero-rated supplies
- Standard-rated purchases on which input tax claims are made or will be made (excluding reverse-charge purchases)
For point-of-sale and petty cash purchases, businesses can aggregate transactions before transmitting them to the IRAS.
Invoice data must be transmitted to the IRAS by the earlier of:
- The date the relevant GST return is filed
- The filing due date for the GST return
If a customer has adopted InvoiceNow, the supplier can transmit invoice data to both the customer and IRAS simultaneously. If the customer has not adopted InvoiceNow, the supplier will need to manually transmit the data to the IRAS.
GST Returns
Despite the introduction of InvoiceNow, GST-registered businesses are still required to file their GST returns on time. The mandatory record-keeping requirements also remain unchanged. Adoption of InvoiceNow does not absolve businesses from these obligations.
Support from IMDA and IRAS
By May 2025, the Infocomm Media Development Authority (IMDA) will publish a list of InvoiceNow solutions approved for use with the IRAS. To assist with the adoption of InvoiceNow, the IMDA has introduced several grants, such as the LEAD Connect & Transact Grant and the InvoiceNow Transaction Bonus.
Additionally, businesses using preapproved e-invoicing solutions may qualify for the Productivity Solutions Grant to support IT solutions and equipment purchases, including InvoiceNow solutions.
The IMDA and IRAS are reviewing further support measures to ease tax compliance and will provide more information as needed.
Key Considerations
Businesses planning to adopt InvoiceNow and transmit invoice data automatically to the IRAS starting in May 2025 should begin their preparations now. Steps to take include:
- Assessing current readiness for people, processes, and systems, identifying any gaps, and preparing for regulatory changes.
- Ensuring the quality and availability of data, particularly focusing on master data and tax determination to minimize manual intervention and ensure accuracy.
- Identifying the most suitable InvoiceNow solution, whether by procuring a ready-made solution or configuring in-house ERP systems to be InvoiceNow-ready and capable of connecting to the IMDA’s preapproved access point.
Conclusion
The GST InvoiceNow Requirement marks an important step in simplifying GST compliance for businesses in Singapore. By streamlining processes, it can reduce errors, improve cash flow management, and lower costs for GST-registered businesses. This shift aligns with broader e-invoicing trends in the ASEAN region, and businesses should act early to ensure compliance.
For assistance in ensuring a smooth transition to GST InvoiceNow and optimizing your accounting processes, contact WLP Accounting. Our team can guide you through the necessary steps, assist with technology solutions, and help with compliance planning, making sure you’re fully prepared for the upcoming changes.