GST-registered businesses will need to use InvoiceNow solutions to transmit invoice data to IRAS via the InvoiceNow solutions. This requirement will roll out gradually:
- Starting 1 November 1 2025, newly incorporated companies that voluntarily register for GST will need to comply.
- From 1 April 2026, this requirement extends to all new voluntary GST registrants.
- A soft launch for early adoption begins on 1 May 2025, allowing existing GST-registered businesses to voluntarily transmit invoice data to IRAS using InvoiceNow solutions via the InvoiceNow network
Sources: IRAS
InvoiceNow solutions
InvoiceNow solutions are finance and accounting software that facilitate the exchange of invoices between businesses through the InvoiceNow network. They are available as off-the-shelf products or can be tailored to fit the specific needs of businesses as customized enterprise resource planning systems.
InvoiceNow solutions will be linked to IRAS through Access Points (AP). This integration will enable the transmission of invoice data to IRAS via Application Programming Interface (API) technology. When businesses activate the feature to transmit invoice data to IRAS, IRAS will automatically receive a copy of the invoice data whenever businesses issue or receive invoices through the InvoiceNow network, or when they input other invoices into the InvoiceNow solutions.
Sources: IRAS
Advantages of Utilizing InvoiceNow Solutions
Utilizing InvoiceNow solutions provides the following benefits:
- Efficient processes: InvoiceNow solutions enable the direct transmission of e-invoices in a structured data format across diverse finance systems, eliminating manual tasks associated with sending, receiving, and recording invoices into systems.
- Decreased errors and expenses: InvoiceNow solutions reduce manual processes, minimizing errors and the associated costs of rectification. With electronic maintenance of invoice records, it also reduces expenses related to invoice storage and retrieval.
- Enhanced cash flow management: InvoiceNow expedites invoice processing and payment, aiding businesses in more efficiently managing their cash flow.
Ultimately, by streamlining and automating these processes, businesses can devote more attention to core priorities such as growth and innovation.
GST-registered businesses are mandated to uphold robust record-keeping controls and accounting procedures. Embracing InvoiceNow solutions will assist businesses in fulfilling these obligations.
Businesses not covered by the GST InvoiceNow
Requirement The following categories of businesses will be exempt from the GST InvoiceNow Requirement:
- Foreign entities (including overseas vendors registered under the Overseas Vendor Registration system)
- Businesses registered under the Reverse Charge regime
