GST InvoiceNow – Understanding the Requirement in Singapore

Singapore continues to make strides toward digitalisation, and a key development in this journey is the GST InvoiceNow Requirement. This initiative, jointly driven by the Inland Revenue Authority of Singapore (IRAS) and the Infocomm Media Development Authority (IMDA), aims to streamline the way GST-registered businesses handle invoicing and tax compliance through a secure, standardised network known as InvoiceNow. A. Introduction: What is InvoiceNow? It is Singapore’s nationwide e-invoicing network based on the global Peppol standard. Managed by IMDA, this infrastructure allows businesses to transmit invoices directly from one system to another in a structured digital format, ensuring greater efficiency, accuracy, and interoperability. Since its launch in 2019, it has evolved significantly. Notably, in February 2024, it was upgraded with the PINT-SG Specification, enhancing its capacity for both cross-border transactions and alignment with GST submission requirements. The GST InvoiceNow Requirement: An Overview The requirement mandates the digital transmission of invoice data to IRAS via InvoiceNow-Ready Solutions. Businesses must ensure their systems can support this requirement, either through upgrades or by adopting pre-approved service providers. B. Implementation Timeline: Phase Date Requirement Summary Soft Launch & Early Adoption 1 May 2025 Voluntary adoption by existing and new GST applicants. Initial Implementation 1 Nov 2025 Mandatory for newly incorporated companies applying for voluntary GST registration. Full Implementation 1 Apr 2026 Applies to all new voluntary GST registrants. Certain exceptions apply. C. Types of invoice submission: There are four types Type 1A Submission: Supply Transaction made within InvoiceNow Network (i.e., Peppol Invoice) (refer IMAGE 1): Supply transaction made by the supplier within the InvoiceNow network For a supply transaction made within the InvoiceNow network (e.g., where both the GST-registered supplier and the customer are connected to IRAS via the InvoiceNow network), the transmission of the invoice data to IRAS occurs in the following manner: GST-registered supplier issues a Peppol invoice for a supply transaction using its InvoiceNow-Ready Solution via the InvoiceNow network and sends the invoice to its Access Point. IRSPs that have built in validation checks on wrongful GST charges would detect invoices from suppliers that wrongly charge GST and trigger an alert to the sender (i.e. the supplier) for his attention. Supplier’s AP forwards the invoice to the customer’s Access Point. Once the invoice data is successfully sent to the customer’s Access Point, a copy of the Peppol invoice will be transmitted to IRAS automatically. Customer’s Access Point forwards the invoice to the customer. Type 1B Submission: Corresponding Purchase Transaction received by the Customer within InvoiceNow Network from the Supply Transaction under Type 1A Submission (i.e., Solution-extracted Invoice) (refer IMAGE