Singapore is moving fast towards digitalising business and tax processes. One major initiative every SME and startup should be aware of is InvoiceNow, especially with mandatory requirements coming into effect from 2025 and 2026 for GST-registered businesses.
This article breaks down what InvoiceNow is, what the upcoming regulations mean, how Xero supports InvoiceNow, and what you should do next — in simple, practical steps.
What is InvoiceNow?
InvoiceNow is Singapore’s nationwide e-invoicing network, introduced in 2019 by the Infocomm Media Development Authority (IMDA).
In simple terms, InvoiceNow allows businesses to:
Send and receive invoices directly from one accounting system to another
Avoid manual PDF or email invoices
Reduce errors, duplicated work, and processing time
InvoiceNow is built on the international Peppol standard, which ensures:
Secure transmission of invoices
Compatibility across different accounting and finance systems
Scalability for businesses of all sizes
Today, over 60,000 businesses in Singapore are already on the InvoiceNow network, using solutions provided by InvoiceNow-Ready Solution Providers (IRSPs) and Access Point (AP) Providers.
Why InvoiceNow Matters for SMEs and Startups
For many SMEs and startups, invoicing is still manual and time-consuming. InvoiceNow helps to:
Speed up invoice processing and payment cycles
Reduce human errors from manual data entry
Improve cash flow visibility
Prepare your business for future regulatory requirements
More importantly, InvoiceNow is no longer just a “nice-to-have”. It is becoming a compliance requirement.
What is the GST InvoiceNow Requirement?
To support Singapore’s nationwide InvoiceNow initiative and IRAS’s digitalisation of tax administration, GST-registered businesses will be required to transmit invoice data to IRAS using InvoiceNow-Ready Solutions.
This requirement applies to invoice-related data such as:
Tax invoices
Credit notes
Aggregated cash sales
Aggregated petty cash purchases
Once activated, your accounting system will send:
The invoice to your customer via the InvoiceNow network
A copy of the invoice data to IRAS, through IMDA-accredited Access Point Providers
This improves GST reporting accuracy and reduces the need for manual submission or future audits.
Who Must Comply and When?
The GST InvoiceNow requirement will be implemented in phases.
Key timelines to take note of:
From 1 November 2025
Companies that register for GST voluntarily within 6 months of being incorporated must adopt InvoiceNow
From 1 April 2026
All new voluntary GST registrants, regardless of when the business was incorporated, must use InvoiceNow
👉 In short:
If you are registering for GST on or after 1 April 2026, InvoiceNow is mandatory to fulfil IRAS requirements
While existing GST-registered businesses are not yet mandated, early adoption puts you ahead and reduces future transition risks.
What are InvoiceNow-Ready Solutions?
InvoiceNow-Ready Solutions are accounting or finance software that can:
Create invoices in the required structured format
Transmit invoices via the InvoiceNow (Peppol) network
Send invoice data securely to IRAS once enabled
Choosing the right solution is important, not all accounting systems are InvoiceNow-ready, and not all accounting software can meet each businesses’ unique needs.
How Xero Enables InvoiceNow in Singapore
Xero, a popular cloud accounting software widely used by Singapore SMEs and startups, is an InvoiceNow-Ready Solution.
With Xero, businesses can:
Send and receive InvoiceNow e-invoices directly within Xero
Reduce manual invoice creation and reconciliation work
Prepare for GST InvoiceNow compliance
Integrate invoicing seamlessly with accounting, reporting, and GST filing
Once InvoiceNow is activated and properly configured:
Invoice data can be transmitted through the InvoiceNow network
Relevant invoice information can be shared with IRAS when required
The key is proper setup and understanding how it fits into your existing processes — which is where guidance becomes important.
What Should SMEs and Startups Do Next?
If you are:
- Planning to register for GST voluntarily
- Unsure whether InvoiceNow applies to your business
- Interested in adopting Xero or other InvoiceNow-Ready solutions
- Already using Xero but not sure if InvoiceNow is enabled correctly
- Looking to future-proof your accounting and compliance processes and implement further with more advanced features like optical character recognition (OCR) and AI
Contact Us!
At 361 Degree Consultancy, we having been helping Singapore SMEs and startups since 2008 with:
Understand InvoiceNow and GST compliance requirements
Assess whether InvoiceNow applies to their business
Implement and configure Xero with InvoiceNow correctly
Ensure a smooth, compliant transition with minimal disruption
Reach out to us today to learn how InvoiceNow and Xero can work for your business while staying compliant as regulations evolve.
👉 Email us at enquiry@361dc.com or call us via 6515 7906.
