Get Ready for the GST InvoiceNow Requirement

Overview of GST InvoiceNow Requirement

The GST InvoiceNow Requirement marks a pivotal change in how GST-registered businesses will handle invoicing. Leveraging the nationwide e-invoicing network based on the Peppol standard, this initiative aims to digitalize the invoicing process, making it more efficient, accurate, and streamlined. The requirement for GST-registered businesses to transmit invoice data to the Inland Revenue Authority of Singapore (IRAS) using InvoiceNow solutions is set to be implemented progressively:

• 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 from 1 May 2025, allowing all existing GST-registered businesses to transmit invoice data voluntarily to IRAS using InvoiceNow solutions via the InvoiceNow network.

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The Benefits of InvoiceNow Solutions

Adopting InvoiceNow solutions brings a plethora of advantages to your business operations:

1. Streamlined Processes: Direct transmission of e-invoices across different finance systems eliminates manual handling, speeding up the invoicing process.

2. Reduced Errors and Costs: Automation reduces the likelihood of errors and the costs associated with rectifying them. It also cuts down on invoice storage and retrieval expenses.

3. Improved Cash Flow Management: Faster invoice processing and payment times help businesses manage their cash flow more effectively.

By integrating these solutions, businesses can not only meet regulatory requirements but also enhance operational efficiency and focus on growth and innovation.

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Preparing Early to Adopt GST InvoiceNow Solutions

To ensure a smooth transition to GST InvoiceNow, businesses are encouraged to take proactive steps:

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From now:

1. Ensure Your Solution is InvoiceNow-enabled: Verify that your existing or planned accounting solution is compatible with InvoiceNow by checking IMDA’s pre-approved e-invoicing solution provider list. Large enterprises with in-house solutions should connect to the InvoiceNow network through an IMDA pre-approved Access Point Provider.

2. Register for InvoiceNow and Obtain Your Peppol ID: Contact your Solution Provider or Access Point Provider to register your business on the SG Peppol Directory and obtain your Peppol ID.

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From May 2025:

3. Connect Your InvoiceNow Solution to IRAS’ System: Ensure that your InvoiceNow solution can transmit invoice data to IRAS via API, facilitating seamless data submission for tax purposes.

4. Activate and Test the Transmission Feature: Work with your provider to enable the feature that allows you to transmit invoice data to IRAS, and conduct tests to ensure everything is functioning as expected.

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Embracing InvoiceNow with Xero

For small businesses seeking a straightforward way to adopt e-invoicing, Xero presents an ideal solution. As a user-friendly e-invoicing software, Xero enables businesses to send and receive e-invoices directly into their accounting software, streamlining the invoicing process. By registering for InvoiceNow through Xero, you can quickly set up and start receiving e-invoices as draft bills, simplifying the approval process and encouraging prompt payment.

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Conclusion

The transition to GST InvoiceNow is more than a regulatory requirement; it's an opportunity for small businesses in Singapore to enhance their efficiency, reduce operational costs, and improve cash flow management. By taking early steps to adopt InvoiceNow solutions, you can ensure you are well-prepared for the future of digital invoicing, staying compliant while benefiting from the efficiency and accuracy that digital solutions provide.

For any assistance on getting set up early on InvoiceNow, obtaining your Peppol ID, or making the move to Xero, get in touch with us at Harvest Accounting.