GST InvoiceNow Requirement
IRAS has announced this initiative that GST-registered businesses will be required to transmit invoice data to IRAS using InvoiceNow solutions via the InvoiceNow network. The new InvoiceNow requirement will be implemented progressively in stages:
- From 1 Nov 2025, for newly incorporated companies that voluntarily register for GST.
- From 1 Apr 2026, for all newly voluntary GST-registrants.
A soft launch for early adoption will commence from 1 May 2025, allowing all existing GST-registered businesses to transmit invoice data voluntarily to IRAS using InvoiceNow solutions via the InvoiceNow network.
Overview of the InvoiceNow Requirement ?
InvoiceNow is the nationwide e-invoicing network based on an international standard called “Peppol”. It is the process of sending and receiving invoices electronically (called e-invoicing) in a structured data format (e.g. Peppol) which allows for its automatic and electronic processing between businesses. It was introduced by the Infocomm Media Development Authority (“IMDA”) in 2019.
What are InvoiceNow Solutions ?
InvoiceNow solutions are finance and accounting software that allow the transmission of invoices between businesses via the InvoiceNow network.
They can be purchased off-the-shelf or be customized specifically for businesses in the form of proprietary enterprise resource planning systems.
InvoiceNow solutions will be connected to IRAS through Access Points (AP). This connection enables the transmission of invoice data to IRAS via an Application Programming Interface (API) technology.
When businesses activate the feature to transmit invoice data to IRAS, IRAS will receive a copy of the invoice data related to their AR/AP invoicing whenever businesses issue or receive invoices via the InvoiceNow network, or when they record other invoices into the InvoiceNow solutions.
The list of InvoiceNow solutions that are connected to IRAS will be published by IMDA by May 2025.
To help businesses defray the cost of adoption and utilisation of InvoiceNow, IMDA has introduced a variety of grants, such as the LEAD Connect & Transact Grant and InvoiceNow Transaction Bonus. InvoiceNow solutions are also eligible for co-funding under the Productivity Solutions Grant. Refer to the IMDA website for more information on InvoiceNow grants.
IMDA and IRAS are reviewing the need for further support and measures to ease tax compliance, and will provide more details at a later date.
InvoiceNow solutions are envisioned to help businesses to reap the following benefits:
- Cost savings – It reduces expenses such as printing charges, paper, postage and minimise manual data input leading to cost savings over time.
- Faster payments processing – It will result in faster payment cycles, thereby improving cash flow and working capital management
- Accuracy of financial records – It will help to reduce human errors, reduces disputes and improves the accuracy of financial data.
- Improved staff efficiency – It helps to improve efficiency of staff to provide higher value-added tasks and enable tax process automation.
- Improved Compliance and Audit Readiness – It enhances retrieval and audit preparation by businesses and compliance with tax and regulatory requirements.
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