November 28 2024

InvoiceNow: What Businesses Need to Know About Singapore’s New GST Compliance Guide

Singapore's Inland Revenue Authority (IRAS) has recently published a draft e-Tax Guide that could signal significant changes for GST-registered businesses. The guide outlines the adoption of InvoiceNow, a nationwide e-invoicing framework aimed at enhancing efficiency, compliance, and data accuracy. While this marks a clear step toward greater digitalization, businesses should prepare for new operational and reporting requirements.

What Is InvoiceNow and Why It Matters?

InvoiceNow is not just a buzzword but a strategic initiative designed to streamline invoicing processes across Singapore. It enables the direct exchange of invoices between businesses through a secure, structured digital format. The adoption of this system aligns with Singapore’s broader efforts to modernize its financial infrastructure and boost productivity.

Anticipated Changes for GST-Registered Businesses

GST-registered businesses should take note of key updates proposed in the draft guide, especially regarding how InvoiceNow will integrate with GST reporting. While details are still being finalized, companies may need to adapt their accounting systems to meet compliance requirements.

What’s Next?

IRAS has invited public feedback on the draft, signaling a collaborative approach in refining these guidelines. Businesses and stakeholders are encouraged to review the full document for a comprehensive understanding of the proposed framework.

What are the GST InvoiceNow adoption dates?

GST-registered businesses will be required to transmit invoice data to IRAS using InvoiceNow solutions via the InvoiceNow network. The progressive implementation timeline is as follows:

  • From 1 November 2025, for newly incorporated companies that voluntarily register for GST.
  • From 1 April 2026: For all new voluntary GST registrants.

A soft launch for early adoption will commence on 1 May 2025, enabling existing GST-registered businesses to voluntarily begin transmitting invoice data to IRAS via InvoiceNow solutions.

IRAS plans to progressively implement the GST InvoiceNow Requirement for all other GST-registered businesses.

To ensure a smooth transition, IRAS will continue consulting with industry partners and carefully reviewing feedback before providing further details.

The official document is available here: Summary of Responses - Public Consultation on the Draft e-Tax Guide

Related content: Singapore - InvoiceNow will become the default e-invoice submission channel for all government vendors - Diacron