The Inland Revenue Authority of Singapore (IRAS) has introduced the GST InvoiceNow Requirement, a phased mandate for GST-registered businesses to transmit invoice data electronically via the Peppol-based InvoiceNow network. Here’s a breakdown of what this means for ERP systems and businesses:
Key Implementation Timeline
- Soft Launch (1 May 2025):
Early adoption opens for all existing GST-registered businesses to voluntarily transmit invoice data to IRAS. - Mandatory for Newly Incorporated Companies (1 Nov 2025):
Applies to companies incorporated within six months of applying for voluntary GST registration. - Expansion to All Voluntary Registrants (1 Apr 2026):
All new voluntary GST registrants must comply, regardless of incorporation date or business structure.
IRAS plans to extend this requirement to all GST-registered businesses progressively, pending further consultations.
Technical Requirements for ERP Integration
- InvoiceNow Solutions: ERP systems must adopt Peppol-compliant solutions to transmit structured invoice data. These can be off-the-shelf software or customized systems connected via IMDA-certified Access Points (APs) using API technology.
- Peppol ID Registration: Businesses must register with the SG Peppol Directory using their UEN to obtain a unique Peppol ID.
- API Connectivity: Ensure ERP systems are connected to IRAS’s systems through AP providers to enable real-time data transmission.
Steps to Prepare ERP Systems:
- Verify Compatibility: Check if your ERP is listed on IMDA’s pre-approved InvoiceNow solutions (to be published by May 2025).
- Integrate with IRAS: Work with AP providers to enable API connectivity and test transmission workflows.
- Activate Features: Enable automated data transmission for invoices issued, received, or manually recorded in the system.
Scope of Transactions
ERP systems must transmit data for:
- Standard-rated and zero-rated supplies (excluding reverse-charge transactions).
- Purchases with input tax claims (excluding reverse-charge purchases).
- Aggregated point-of-sale or petty cash transactions18.
Exemptions: Overseas entities and businesses under the Reverse Charge regime are excluded.
Benefits for ERP-Driven Businesses
- Streamlined Compliance: Automate GST data submissions, reducing manual efforts for tax returns and audits.
- Faster Refunds: Low-risk businesses may receive GST refunds earlier.
- Error Reduction: Built-in validations detect incorrect GST charges from suppliers.
- Cost Savings: Reduce manual processing, storage, and rectification costs.
Support and Grants
- Grants Available: IMDA offers the Productivity Solutions Grant (up to $30,000), InvoiceNow Transaction Bonus, and LEAD Connect & Transact Grant to offset adoption costs.
- Free Solutions: Newly incorporated businesses may access free InvoiceNow services under IMDA’s Accelerate programme.
Action Items for ERP Teams
- Audit Current Systems: Ensure ERP solutions support Peppol standards and IMDA’s requirements.
- Plan Early: Integration timelines vary—1–3 days for off-the-shelf software vs. 3–12 months for custom systems.
- Leverage Resources: Refer to IRAS’s draft e-Tax Guide and IMDA’s technical playbooks for compliance guidelines.
Final Note:
The GST InvoiceNow Requirement aligns Singapore with global e-invoicing trends, emphasizing accuracy and efficiency. For ERP providers, this is an opportunity to enhance system capabilities and support clients in seamless compliance. Start preparations now to meet the 2025 deadlines and leverage available grants for a cost-effective transition.
For detailed technical specifications, visit IRAS’s GST InvoiceNow page.