Singapore Announces Phased Adoption of B2B E-Invoicing via InvoiceNow
On April 14, 2024, the Inland Revenue Authority of Singapore (IRAS) and the Infocomm Media Development Authority (IMDA), also known as the Singapore Peppol Authority, announced plans for a phased adoption of B2B e-invoices through InvoiceNow. This initiative, called the “GST InvoiceNow Requirement,” was unveiled at the InvoiceNow Industry Day event.
GST InvoiceNow Requirement
InvoiceNow is a nationwide e-invoicing network based on the Peppol network, which IMDA introduced in 2019. It has become the default format for submitting business-to-government (B2G) invoices.
The GST InvoiceNow Requirement will enhance the existing 4-corner model to a Peppol 5-corner model (Peppol CTC) to connect to tax authorities. Taxpayers will transmit invoice data to IRAS through accredited service providers. When businesses exchange e-invoices in PINT SG format via the InvoiceNow network, a copy of the invoice will be delivered to IRAS.
IMDA will publish a list of InvoiceNow solutions that connect to IRAS by May 2025.
Implementation Timelines
The GST InvoiceNow Requirement will be adopted in the following phases:
May 1, 2025: Soft launch. GST-registered businesses can voluntarily adopt the GST InvoiceNow Requirement.
November 1, 2025: Newly incorporated companies that voluntarily register for GST.
April 1, 2026: All new voluntary GST-registered businesses, regardless of incorporation date.
Scope of the GST InvoiceNow Requirement
According to the announcement, GST taxpayers will be required to use InvoiceNow solutions to transmit invoice data to IRAS for tax administration, including for the following 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.
Point-of-sale supplies, where businesses can choose to submit aggregated data to IRAS.
Exemptions
The following businesses are exempted from the GST InvoiceNow Requirement:
Overseas entities (including overseas vendors registered under the Overseas Vendor Registration regime).
Businesses registered under the Reverse Charge Regime.
Global Alignment and Future Plans
The GST InvoiceNow Requirement aligns with global trends, with governments worldwide actively promoting the implementation of e-invoicing for tax administration. IMDA and IRAS are reviewing market demands for further support and measures to ease tax compliance and will provide more details later.