Digital Compliance: How e-Invoicing is Transforming Business in Singapore in 2025
Overview: The Rise of e-Invoicing in Singapore
Singapore has been at the forefront of adopting digital invoicing, marking significant milestones in its technological transformation.
In May 2018, the Infocomm Media Development Authority (“IMDA”) became the first Peppol Authority, outside of Europe, adopting the Peppol framework utilising Peppol access point providers. The appointment of IMDA as a Peppol Authority set the wheels in motion for a nationwide electronic invoicing agenda. In January 2019, the e-invoicing initiative was launched, allowing for businesses to exchange invoices electronically using the Peppol Network, by way of an accredited service provider.
The momentum continued as the Singapore's government integrated its public procurement processes with the Peppol network in January 2020. The electronic invoice initiative was thereafter rebranded in September 2020 as the InvoiceNow Network, aiming to standardise the e-invoicing practice and to enhance the interoperability between business entities.
InvoiceNow became the default channel for public procurement in 2023, allowing for e-invoices to be transmitted to the Inland Revenue Authority of Singapore (“IRAS”). Further solidifying its commitment to digital transformation, reflecting its growing role in facilitating seamless transactions.
The purpose of InvoiceNow and the implementation of the nationwide e-Invoicing network is to improve business efficiency, reduce the administrative burden on business entities and to reduce the cost, all the while remaining environmentally friendly.
Unpacking the Current e-Invoicing Mandate in Singapore
IRAS issued an update on 17 March 2025, on the phased implementation of the e-invoicing requirements for businesses registered for Goods and Services Tax (“GST”). Under the scope of the e-invoicing requirements, businesses will be required to send and receive invoices electronically via the InvoiceNow network.
InvoiceNow enables the direct exchange of structured digital invoices between financial systems using Singapore’s Nationwide network, which operates on the Peppol framework. The standardized digital transmission aims to eliminate the need for manual data entry by invoice recipients while ensuring that invoice data is also shared with the tax authority.
The rollout of these requirements will occur in stages. Early voluntary adoption begins in May 2025. From November 2025, the requirements will apply to newly incorporated businesses that opt for voluntary tax registration. By 1 April 2026, it will extend to all voluntarily registered GST taxpayers. IRAS has indicated plans to further expand mandatory participation to additional GST-registered businesses, with ongoing consultations with industry stakeholders to refine the approach before announcing further details.
Following a stakeholder consultation in June of 2024, IRAS has updated its guidelines on the InvoiceNow, incorporating feedback and refining the scope of the requirement. Using InvoiceNow, businesses will transmit invoice data to IRAS. The revised guidance specifies that businesses must submit invoice data for the following Goods and Services tax reported transactions: Standard-rated supplies; Zero-rated supplies; Exempt supplies; Standard-rated purchases; Zero-rated purchases.
The transmitted invoice data will include information from invoices or equivalent billing documents used for payment processing, such as sales invoices, tax invoices, simplified tax invoices, serially numbered receipts, debit notes, and credit notes.
However, certain transactions are excluded from the data transmission requirement, including transactions reported solely for tax purposes without an underlying supply or purchase (e.g., deemed supplies, goods exported without sales, and reverse charge transactions); exempt financial services and the exchange or loan of digital payment tokens; and import permits for goods importation.
These updates aim to streamline tax compliance and enhance efficiency in invoice processing, aligning with Singapore’s broader digital transformation initiatives.
Key Milestones in Singapore’s e-Invoicing Mandate
As mentioned in short above, the e-invoicing Mandate in Singapore can be surmised as follows:
1. May 2025: Singapore’s e-invoicing regulations will require all newly incorporated businesses that have elected to voluntarily registered for GST to adopt the use of InvoiceNow. This will ensure that new GST-registered business entities integrate digital invoicing from the start.
2. November 2025: All newly incorporated businesses that have voluntarily registered for GST must adopt e-invoicing. Ensures that digital invoicing becomes a standard practice.
3. April 2026: All new voluntary GST-registered, regardless of incorporation date must adopt e-invoicing via InvoiceNow.
Who needs to Comply? Breaking it Down
The e-invoicing requirements in Singapore will be affecting business entities who have elected to voluntarily registered for GST. In Singapore for resident taxable persons/businesses that are not required to register may still apply to do so voluntarily, if the business entity makes taxable or certain exempt supplies. Voluntary registrants must, however, meet certain conditions to register, including, making requisite supplies within 2 years; remaining registered for at least 2 years; attending a goods and services tax course within 3 months; maintaining a GIRO facility for tax payments. There are also special cases for voluntary registrations, such as businesses supplying goods outside Singapore that would be taxable if made locally and businesses supplying goods while under customs control.
Non-resident businesses that do not have a usual place of residence or establishment in Singapore may also apply for voluntary registration even if they are not required to register. However, under Section 33(1) of the Goods and Services Tax Act, a non-resident business that registers for GST must appoint a local representative, known as a Section 33(1) Agent. This agent is responsible for filing tax returns and making tax payments on behalf of the non-resident business.
Under Section 33(3A) of the Goods and Services Tax Act, a business is considered to "belong" in Singapore for tax purposes if the business:
· Has a fixed establishment only in Singapore;
· Has no fixed establishment anywhere, but its usual place of residence is in Singapore;
· Has establishments in multiple countries, but the one most directly involved in the supply is in Singapore.
Additionally, Section 33(5) of the GST Act states that businesses operating through a branch or agency in any country are considered to have a business establishment there. A company’s usual place of residence is defined as the country where it is incorporated or legally constituted.
What the e-Invoicing Mandate means for businesses
The e-invoicing mandate in Singapore will significantly transform how businesses manage transactions by driving efficiency, compliance, and digital integration. By requiring GST-registered businesses to adopt InvoiceNow, Singapore’s Peppol-based e-invoicing framework, companies will benefit from automated invoice processing, reduced errors, and faster payments. This shift will enhance cash flow management, lower administrative costs, and improve overall financial transparency. Additionally, businesses that transition early can take advantage of government grants and incentives while positioning themselves for seamless cross-border trade, as Peppol facilitates interoperability with global markets. Ultimately, the mandate will accelerate Singapore’s digital economy, making e-invoicing the standard for smoother and more secure business transactions.
If you have any questions or need assistance navigating Singapore's e-invoicing mandate, please reach out to the eezi.
