E-Invoicing in Singapore: Benefits, Requirements, and How to Get Started

Businesses are gradually realizing the benefits of e-invoicing as it allows them to better manage their business processes and adapt to changing compliance requirements. This change is especially important for Singapore because the nation is gradually working on developing a better economic environment, and digitalization can help to achieve this goal.

Does your company have an office or conduct business in Singapore? E-invoicing in Singapore is an important topic you should familiarize yourself with.

In this article, you will learn everything you need about e-invoicing in Singapore, including whether it's mandatory, the benefits of the local e-invoicing network (InvoiceNow), and how businesses can get started.

Is e-invoicing mandatory in Singapore?

E-invoicing is still not a legal requirement for every organization in Singapore. However, the Infocomm Media Development Authority (IMDA) intends to digitize and promote a nationwide e-invoicing network, InvoiceNow, rooted in the international PEPPOL.

The government has been aggressively pushing businesses to implement the system, even though participation is entirely voluntary. The Ministry of Finance has proposed a draft law to gradually implement mandatory electronic invoicing.

Implementation timeline for e-invoicing in Singapore

According to the Inland Revenue Authority of Singapore, the new B2B electronic invoicing mandate for registered companies in Singapore has a defined timeframe.

The government aims to make B2G mandatory in the coming years. Thus, the mandate will only apply to B2B transactions.

GST-registered businesses must utilize InvoiceNow solutions to send invoice data to IRAS by the mandate. PEPPOL Access Point providers will transmit invoice data to IRAS, converting the conventional four-corner e-delivery paradigm to a fifth-corner one.

Phases of the mandate's implementation are as follows:

May 1, 2025: Voluntary adoption for GST-Registered Companies

From this date, existing GST-registered companies can voluntarily start using the InvoiceNow e-invoicing system. By integrating ahead of mandatory deadlines, early adopters can take advantage of grants and benefits.

November 1, 2025: voluntary adoption for newly incorporated GST companies

Newly incorporated companies registering for GST after November 1 can opt-in for e-invoicing. While not yet mandatory, starting early offers smoother integration with Singapore's PEPPOL network and helps businesses streamline their invoicing processes.

April 1, 2026: Mandatory e-Invoicing for new voluntary GST registrants

From April 1, 2026, all businesses voluntarily registering for GST will be required to adopt e-invoicing through InvoiceNow. This marks a key shift toward fully adopting the system across new GST-registered entities.

What are the requirements for e-invoicing in Singapore?

Businesses must fulfill a number of technological and legal requirements to begin using e-invoicing in Singapore and guarantee compliance with local laws and the PEPPOL framework. Here are some of the requirements:

Register with a PEPPOL Access Point Provider

The first step for businesses is to register with a certified PEPPOL Access Point Provider like Storecove. They can transmit and receive electronic invoices via PEPPOL.

PEPPOL BIS format

Every electronic invoice must adhere to the format specified by the Business Interoperability Specifications, or PEPPOL BIS. It is a widely accepted standard for efficient system-to-system communication. In Singapore, the accepted format is Singapore BIS Billing 3.0, and starting in 2025, only PEPPOL PINT will be supported.

E-signature and archiving requirements

Businesses can use e-signatures to improve the security and legitimacy of electronic invoices, though they are not required.

Archiving requirements

Singaporean regulations also require invoices to be archived in their original form for at least five years, ensuring they are accessible, readable, and unaltered for audits.

Compliance with local tax regulations

Businesses need to ensure that their invoices comply with Singapore's tax regulations, and Storecove is here to help. This means correctly representing GST (Goods and Services Tax) and other relevant tax details on invoices to avoid legal complications.

System integration

Businesses need to link their present invoicing systems to the PEPPOL network. Usually, this entails collaborating with a service provider who can link their accounting program or enterprise resource planning (ERP) system to the InvoiceNow network.

A smooth integration guarantees efficient management and routing of electronic invoices through the business's internal systems.

How InvoiceNow works

Businesses utilizing ERP or accounting software that is PEPPOL-ready can send and receive electronic invoices via the PEPPOL network by using InvoiceNow.

The BIS (Business Interoperability Specifications) Billing 3.0 (opens in a new tab) standard XML format is used on the network to transfer documents, enabling the interchange of bills even between users of different accounting or ERP systems.

This enables you to connect to any authorized system on the PEPPOL network using your choice of accounting or ERP system. PEPPOL is a network that facilitates electronic document exchange between businesses by employing a four-corner approach.

In the four-corner model:

The seller uses its accounting or ERP system to send the invoice.
The seller's accounting or ERP system converts the invoice into the standard BIS format.
The seller's accounting and ERP system will use the global directory to determine which system belongs to the recipient.
The invoice is sent to the buyer via its ERP or accounting system.

What are the benefits of InvoiceNow?

Adopting InvoiceNow offers businesses various operational, financial, and strategic advantages. Here are some of the key benefits:

1. Cost reduction

Conventional invoicing techniques require the following expenses: paper, ink, stamps, tariffs to post the invoices, and labor to sort, fill, and store the invoices. However, if a company has several such expenses, they build up over the years and begin to impact the bottom line.

InvoiceNow reduces paperwork by enabling the electronic transmission and receipt of invoices. Additionally, because labor and material costs are reduced, businesses may be able to reallocate their resource endowment.

2. Faster processing times

One of the standout benefits of e-invoicing through InvoiceNow is the speed at which invoices are processed. InvoiceNow transmits the invoices directly to the recipient’s system, and this only takes a few seconds. This results in faster approval, faster payments, and better cash flow, which is paramount for any business.

3. Improved accuracy and compliance

Using a manual process to create an invoice increases the likelihood of errors, for example, in data entry, missing fields, or tax computation errors. These mistakes can cause poor payments and disrupt the report on the financial statements.

InvoiceNow removes these risks due to the automation of the process and leveraging of formats accepted in compliance with PEPPOL BIS Billing 3.0 and legal requirements in the country of origin and the country of the recipient company.

4. Cross-border compliance

Due to its ability to run on the PEPPOL network, InvoiceNow makes it easy for businesses to transact internationally. That means any company can send and receive e-invoices.

This makes operations smooth for firms that import or export goods and services and ensures that invoices meet the necessary compliance levels a trading partner requires.

5. Government support and incentives

Companies that want to adopt the InvoiceNow system early are likely to qualify for government grants and incentives that are meant to help reduce any expense that a firm may incur when integrating with the system.

For instance, companies can access financial support through programs such as the Digital Resilience Bonus (DRB) and the Productivity Solutions Grant (PSG). These initiatives not only make adoption more affordable but also signal the government’s commitment to promoting digital transformation in Singapore.

E-invoicing provides a more ecologically friendly option than conventional paper-based processes, as sustainability has become an increasingly important concern for businesses globally. By reducing paper use, InvoiceNow contributes to a company’s sustainability goals and helps lower its carbon footprint.

E-invoicing can also improve a company’s CSR strategy, which it can demonstrate to green-oriented customers, investors, and shareholders. It can also help a company's reputation for social responsibility as it adapts to global business trends toward greater environmental sustainability.

How to get started with InvoiceNow

Here are some key steps to take when preparing your business for this transition:

1. Register for a PEPPOL access point

The first and most important step is to register with a certified PEPPOL Access Point Provider like Storecove. This provider will make sure your business joins the international PEPPOL e-invoice trading community.

The Access Point Provider lifts the technical responsibilities of the process, making sure your business complies with all the interoperability necessary to send and receive invoices through InvoiceNow.

Working with a certified provider, your company can securely integrate into the system and start quickly and effectively exchanging compliant e-invoices.

2. Evaluate your current systems

Before implementing InvoiceNow, it’s essential to assess whether your existing ERP (Enterprise Resource Planning) or accounting software is compatible with the PEPPOL network. Many of today’s systems can interface with e-invoicing tools, but if your system can’t, you will have to consider either updating it or using an intermediary.

Integrating your current system with the PEPPOL network does not disrupt your business's invoicing process. This step also reduces interference with the overall flow of activities in your business.

3. Educate and train your team

Switching to e-invoicing will involve adjustments for your finance and accounting teams. The next step will be to educate everyone involved in the invoicing process on how InvoiceNow works and how the current process will change.

Make sure to educate your team on the benefits of e-invoicing, how it will be performed, invoice sending or receiving, and new guidelines/changes that will be introduced. Proper training ensures that your employees are ready to handle the transition to a new program without much of a hassle. It also reduces the likelihood of errors or project slowdowns in executing tasks and plans.

4. Conduct a compliance review

Even though your Access Point Provider will retain the responsibility for the technical implementation plan, there is no way around it: your business’s invoices require adherence to local tax laws and regulations.

To this end, you should be able to compute and print the GST in the invoice, and this must include the descriptions of the line items in the invoice as well as the Tax Identification Number. Before relying on InvoiceNow, taking the time to review invoicing procedures enables a company to avoid compliance pitfalls that disrupt business functioning.

5. Test the system before going live

Many Access Point Providers offer a sandbox environment where businesses can test their e-invoicing setup before fully committing. During this testing phase, you can check that your system is operating correctly, troubleshoot any possible problems, and confirm that invoices are being processed as expected.

Use this opportunity to simulate real invoicing scenarios, identify bottlenecks, and confirm that your team is comfortable with the new workflow. Testing reduces the risk of operational disruptions when you officially transition to InvoiceNow.

Takeaway: Simplify compliance in Singapore with Storecove's e-invoicing solution

E-invoicing is becoming a vital tool for businesses to stay compliant and competitive as Singapore advances its digital transformation. Although it is not required just yet, using InvoiceNow has many benefits in terms of accuracy, efficiency, and cost savings.

Your company can prepare for upcoming regulatory changes, increase cash flow, and streamline its invoicing procedures by implementing e-invoicing as soon as possible.

Do you need help setting up your e-invoicing process? Storecove is here to help. Leverage our expertise and comprehensive solutions to streamline your e-invoicing operations and ensure compliance easily. Contact us today to get started!

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