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The Inland Revenue Authority of Singapore (IRAS), in collaboration with the Infocomm Media Development Authority (IMDA), is introducing a phased approach for GST-registered businesses to transmit electronic invoice (e-invoice) data directly to IRAS. This initiative, known as the ‘GST InvoiceNow Requirement,’ will begin in November 2025.

To ease the transition, newly incorporated businesses that voluntarily register for GST will be the first to participate. These businesses will benefit from free access to InvoiceNow solutions for one year through the IMDA’s InvoiceNow Accelerate program. This program, launched in April 2024, aims to encourage wider adoption of InvoiceNow.

The implementation of the GST InvoiceNow Requirement signifies a joint effort by IRAS and IMDA to streamline tax administration for businesses and enhance overall compliance.

InvoiceNow Network and Services

Launched in 2019, InvoiceNow leverages the international Peppol standard to facilitate the secure exchange of structured electronic invoices between businesses. This streamlines invoice processing, enabling faster payment cycles and promoting environmental sustainability through reduced paper usage. The InvoiceNow network boasts over 60,000 businesses that benefit from a wide range of services offered by its providers. These services cater to diverse needs, encompassing free e-invoicing portals, comprehensive accounting solutions, and even customized systems.

Implementing InvoiceNow Requirement for GST-Registered Businesses

As part of the GST InvoiceNow Requirement, which will be implemented in phases starting with voluntary early adoption in May 2025, GST-registered businesses will be required to transmit their invoice data directly to IRAS for tax administration purposes. This seamless transmission will be facilitated by Access Point (AP) providers utilizing Application Programming Interface (API) technology.

The GST InvoiceNow Requirement will be implemented in a phased approach to provide businesses with ample time to prepare. This phased approach is as follows:

• Voluntary Early Adoption (Starting May 1, 2025): This initial phase allows existing GST-registered businesses to voluntarily adopt InvoiceNow solutions.
• Newly Incorporated Businesses (Starting November 1, 2025): This phase includes newly incorporated companies that choose to register for GST.
• All New Voluntary GST Registrations (Starting April 1, 2026): This final phase encompasses all new businesses that voluntarily register for GST going forward.

Utilizing the InvoiceNow network for direct transmission of invoice data to IRAS offers several advantages for GST-registered businesses. These include streamlined compliance processes, reduced data preparation for IRAS submissions, and potentially faster GST refunds. Additionally, InvoiceNow solutions can provide valuable features like alerts for incorrect GST charges from non-GST registered suppliers, further enhancing financial accuracy.

The phased adoption of the GST InvoiceNow Requirement draws upon the successful pilot program conducted from September 2020 to June 2023. This pilot involved a group of businesses and service providers, including industry leaders like supermarket chain Sheng Siong Group Ltd and retail and office supplier Evergreen Group Pte Ltd. These pilot users successfully submitted their invoice data to IRAS via the InvoiceNow network. For further insights into the pilot program, please refer to the Annex (PDF, 13KB).

IRAS remains committed to ongoing consultations with industry partners regarding the GST InvoiceNow Requirement. This collaborative approach ensures careful consideration of all feedback before outlining details for the remaining GST-registered businesses. To assist businesses with their InvoiceNow adoption, support resources are available from both IRAS and IMDA. For a comprehensive overview of the implementation timeline and details, please visit the dedicated IRAS webpage.

Providing free InvoiceNow services for Newly Incorporated Businesses

Launched in April 2024, the InvoiceNow Accelerate program by IMDA offers a head start on digitalization for newly incorporated businesses. This program provides one year of complimentary InvoiceNow services through a network of participating service providers. Businesses can select their preferred provider after activating their CorpPass.

IMDA is committed to continuous improvement of the InvoiceNow network, empowering businesses on their digitalization journey. Beyond e-invoicing, the network now supports additional document types like electronic Purchase Orders and Invoice Responses, streamlining the procure-to-pay process. Furthermore, for businesses engaged in cross-border transactions, IMDA has implemented the latest Peppol International (PINT) specifications. These specifications eliminate the need to adapt e-invoices to individual recipient countries, facilitating seamless cross-border transactions.

If your company needs help filing taxes for the year 2024, or requires assistance with Singapore incorporation, economy, banking, etc., feel free to call/WhatsApp us at +65 90612851 or email us at aceglobalacct@gmail.com. Alternatively, you may leave us a reply using our contact form below.

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