GST-Registered Businesses Must Use InvoiceNow-Ready Accounting Software

According to The Inland Revenue Authority of Singapore (IRAS) announcement, businesses that are newly registered for GST will be required to use InvoiceNow-ready accounting software in 2025 and 2026 phases.

This new requirement is part of Singapore’s ongoing push toward digitalisation and to improve the accuracy and efficiency of GST reporting.

We expect IRAS to implement eInvoicing to the broader business community in the near future.

What Is InvoiceNow-Ready Accounting Software?

InvoiceNow-ready software refers to accounting systems that are integrated with Singapore’s nationwide e-invoicing network (InvoiceNow), which operates on the Peppol framework. This allows businesses to send and receive e-invoices directly from one system to another without manual data entry.

Popular cloud accounting platforms like Xero, QuickBooks Online, and others are already InvoiceNow-ready and compliant with the new requirement.

Why Is This Change Happening?

The move towards InvoiceNow-ready software aims to:

• Enhance data accuracy in GST reporting

• Reduce manual errors in invoice submission

• Improve processing times for GST returns

• Encourage digital adoption among SMEs and larger enterprises

By submitting GST returns through InvoiceNow-ready systems, IRAS can receive more consistent and reliable data, making tax filing and auditing processes more efficient for everyone.

Who Is Affected?

To give businesses sufficient time to prepare, IRAS will roll out the GST InvoiceNow Requirement in phases:

• From 1 November 2025: The requirement will apply to newly incorporated companies that register for GST voluntarily. (This refers to companies incorporated within 6 months prior to submitting their GST registration application.)

• From 1 April 2026: The requirement will apply to all new voluntary GST registrants, regardless of incorporation date or business type. InvoiceNow-readiness will be a condition for voluntary GST registration.

From 1 May 2025: A soft launch period begins. IRAS encourages all GST-registered businesses, and those applying for registration from this date onwards, to start transmitting invoice data using InvoiceNow-ready solutions via the Peppol network. Businesses are advised to adopt early to streamline their GST compliance and stay ahead of future regulatory requirements.

What Should Businesses Do Next?

If you are a GST-registered business, here’s what you should do:

1. Check Your Current Accounting Software: Ensure your existing accounting software is InvoiceNow-ready. Popular solutions like Xero already meet this requirement.

2. Plan for Migration (If Needed): If your software is not InvoiceNow-ready, start planning to migrate to a compliant platform as soon as possible.

3. Consider PSG Grant Support: To help SMEs with digital adoption, the Singapore government continues to offer support under the Productivity Solutions Grant (PSG), which can help subsidize the cost of implementing InvoiceNow-ready solutions.

4. Seek Professional Help: If you’re unsure how to comply with this new IRAS requirement, engaging an accounting service provider familiar with InvoiceNow implementation can help make the transition smoother.

How We Can Help

As a certified Xero Partner, we assist businesses in:

• Migrating to InvoiceNow-ready software

• Integrating e-invoicing features

• Ensuring GST reporting compliance

• Applying for available PSG grants

Our team is ready to help you make this transition cost-effective and hassle-free.

Stay Compliant and Go Digital

With these new IRAS requirements, going digital is no longer an option—it’s a necessity. Get ahead of the curve and make sure your business is fully compliant for future GST submissions.

Contact us today to learn more about your options and how we can help.

Disclaimer: The information in this article is accurate as of the time of publication. Please refer to the official IRAS website for the most current updates.