KEY HIGHLIGHTS
- InvoiceNow will become mandatory for new GST-registered businesses from 1 April 2026 in Singapore.
- PDF or WhatsApp invoices will no longer be enough for GST compliance.
- Early setup costs can be S$0 for small SMEs using approved solutions.
Singapore is officially moving GST-registered businesses onto InvoiceNow, a nationwide e-invoicing system that sends invoice data directly between accounting systems. No emails lost. No retyping. No “eh, you never send me” arguments.
This isn’t a suggestion anymore. It’s part of Singapore’s long-term tax compliance plan.
Below is what’s changing, when it affects you, and what to do now so you don’t scramble later.
InvoiceNow Mandatory Timeline for GST Businesses
| Effective Date | Who Is Affected | What Changes |
|---|---|---|
| 1 May 2025 | All GST-registered businesses | Early adoption encouraged (not compulsory yet) |
| 1 Nov 2025 | New voluntary GST registrants | InvoiceNow becomes a condition of GST registration |
| 1 Apr 2026 | All new GST registrants | Mandatory InvoiceNow usage for B2B invoices |
| Future (TBC) | Existing GST-registered businesses | Expected full rollout under tax administration rules |
If you’re planning to register for GST after 1 November 2025, InvoiceNow is no longer “nice to have”. It’s required.
What InvoiceNow Actually Is (And Why PDFs Don’t Count)
Many business owners think emailing a PDF equals e-invoicing. Honestly speaking — it doesn’t.
A PDF is just a digital document. Someone still has to manually key in the details. That means errors, delays, and disputes.
InvoiceNow uses the Peppol network, allowing your accounting system to send invoice data directly into your customer’s system. No human re-entry needed.
Example:
You invoice using Xero.
Your customer uses SAP.
InvoiceNow sends the data straight across — automatically.
That’s why IMDA and IRAS are pushing this so hard. It standardises invoicing nationwide.
Why Singapore Is Making InvoiceNow Mandatory
1. Stronger GST Fraud Prevention
Singapore has seen cases of fake invoices used to claim GST refunds. With InvoiceNow, IRAS can verify invoice data almost instantly, making fraud much harder.
2. Faster Payments for SMEs
InvoiceNow invoices don’t get buried in inboxes. They land directly inside accounting systems. Many businesses report shorter payment cycles after switching.
3. Lower Admin Costs
Manual invoices can cost S$10–S$20 each in manpower. InvoiceNow reduces that to cents. For SMEs issuing dozens of invoices monthly, this adds up quickly.
How to Set Up InvoiceNow (Without Spending a Bomb)
Option A: Free InvoiceNow Portals
If you send fewer than 10 invoices a month, IMDA-approved free solutions are available.
Basic steps:
- Choose a free InvoiceNow provider
- Log in with CorpPass
- Verify your UEN
- Start sending invoices
Good enough for micro-SMEs and sole proprietors.
Option B: Using Accounting Software
Already on Xero, QuickBooks, ABSS, or Deskera? You’re likely already supported.
Typical setup time: under 10 minutes
Just register your Peppol ID using CorpPass and you’re ready.
Option C: Government Grants
If upgrades are needed, grants can help:
- PSG – up to 50% support
- LEAP Programme – for larger digital projects
No need to overthink — most SMEs won’t need expensive systems.
What Happens If You Ignore InvoiceNow?
This is where things get serious.
GST De-Registration Risk
From 1 November 2025, InvoiceNow is a condition for GST registration.
Fail to comply, and IRAS can cancel your GST status.
If your revenue exceeds S$1 million, operating without GST registration is an offence.
Financial Penalties
Under the GST Act:
- Fines up to S$5,000
- Possible 6 months’ imprisonment
- Input tax claims may be rejected
If IRAS can’t verify your invoices, refunds can be denied.
Higher Audit Risk
Manual or PDF workflows raise red flags. InvoiceNow provides a clean, traceable audit trail — reducing your risk profile.
Simple Checklist for SME Owners
- Confirm your software is Peppol-ready
- Register your Peppol ID early
- Send a test invoice
- Collect customers’ Peppol IDs
- Update internal billing processes
A small effort now avoids major headaches later.
Frequently Asked Questions
Is InvoiceNow compulsory for all GST businesses now?
Not yet. But from 1 April 2026, all new GST registrants must use it. Existing GST businesses are expected to follow in later phases.
Can I still send PDF invoices?
You can keep PDFs for records, but GST-relevant B2B invoices must go through InvoiceNow once mandatory rules apply.
Does InvoiceNow cost money?
Many providers offer free tiers. Paid plans typically cost far less than manual invoicing in the long run.
Final Take for Singapore Businesses
InvoiceNow isn’t just another government rule. It’s Singapore drawing a clear line: paper and PDF invoicing is on the way out.
Switch early, and you save time, money, and stress. Wait too long, and you risk penalties and GST issues.
For most Singapore SMEs, the question isn’t “should I adopt?”
It’s “why wait?”
(Disclaimer: This article provides general information and does not constitute legal or tax advice. Please consult with a qualified accountant or refer to the latest updates on the IRAS/IMDA websites.)
