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May 20, 2024 Singapore Revenue Authority announces GST InvoiceNow requirement The Inland Revenue Authority of Singapore (IRAS) announced on 15 April 2024 the adoption of InvoiceNow, which will allow Goods and Services Tax (GST)-registered businesses to transmit invoice data directly to the IRAS using InvoiceNow solutions. Phased adoption To allow sufficient lead time for businesses, the IRAS GST InvoiceNow Requirement will be implemented by the IRAS in a calibrated and progressive manner, as follows:
The GST InvoiceNow Requirement will be implemented as an additional condition for voluntary GST registration. Exclusions The following groups of businesses will be exempted from the GST InvoiceNow Requirement:
Transmission of invoice data Businesses under the GST InvoiceNow Requirement are required to transmit to the IRAS invoice data relating to the following types of transactions:
For point-of-sale supplies data and petty cash purchases data, businesses may choose to aggregate the transactions before transmitting to the IRAS. Invoice data must be transmitted to the IRAS at the earlier of:
In general, if the customer has adopted InvoiceNow, the supplier can activate the feature when the supplier transmits the invoice data to the customer via the InvoiceNow network to have the same invoice data transmitted automatically to the IRAS. If the customer has not adopted InvoiceNow and the invoice data cannot be transmitted to the customer via the InvoiceNow network, the supplier will have to collate and transmit the invoice data to the IRAS separately. GST returns Notwithstanding the introduction of InvoiceNow, the IRAS would expect GST-registered businesses to continue preparing and filing their GST returns within the stipulated deadline. GST-registered businesses would need to continue to adhere to the recordkeeping requirements, which remain unchanged. The adoption of the GST InvoiceNow Requirement does not preclude GST-registered businesses from having to comply with the mandatory GST recordkeeping requirements. Infocomm Media Development Authority (IMDA) and IRAS support By May 2025, the IMDA will publish the list of InvoiceNow solutions that are connected to the IRAS. To help businesses defray the cost of adopting and utilizing InvoiceNow, the IMDA has introduced a variety of grants, such as the LEAD Connect & Transact Grant and InvoiceNow Transaction Bonus. Using the IMDA's preapproved e-invoicing solution, providers may also be eligible to apply for the Productivity Solutions Grant for IT solutions and equipment, including InvoiceNow solutions. The IMDA and IRAS are currently reviewing the need for further support and measures to ease tax compliance and will provide more details when available. Key considerations Businesses wishing to adopt InvoiceNow and transmit invoice data automatically to the IRAS from May 2025 should commence the preparation process early. To be ready for GST InvoiceNow Requirement, companies may now consider taking the following actions:
Conclusion The GST InvoiceNow Requirement has been brewing for some time and is aligned with recent e-invoicing developments in the ASEAN region. The InvoiceNow system provides an opportunity for GST-registered businesses to overhaul their GST compliance by streamlining their processes, thus reducing errors and costs and improving cashflow management. This focus on accuracy and efficiencies would allow GST-registered businesses to focus on core priorities while ensuring compliance with the GST requirements.
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