If your business is GST-registered in Singapore, e-invoicing isn’t optional for much longer. IRAS is rolling out the GST InvoiceNow Requirement in phases through 2031, and the good news is a GST InvoiceNow grant, plus PSG and SFEC, can significantly offset the cost of getting compliant. Here’s what’s available, and how they stack.
1.Why This Matters Now
GST InvoiceNow requires GST-registered businesses to transmit invoice data to IRAS via InvoiceNow-Ready solutions (built on the Peppol network), instead of filing GST returns the old way.
It’s already mandatory for new voluntary GST registrants from 1 April 2026, and existing GST-registered businesses will be brought in from 2029, tiered by annual supply value: those with supplies of $1 million or less from 1 April 2029, those with supplies of $4 million or less from 1 April 2030, and those with supplies above $4 million from 1 April 2031.
IRAS will notify pre-2026 GST-registered businesses of their specific start date by mid-2026. Waiting until your deadline arrives is the expensive way to do this — the grants below reward early movers.
2. GST InvoiceNow Transition Grant — S$1,000
GST-registered businesses with total annual supplies of S$4 million or less can receive a S$1,000 cash grant to defray the cost of subscribing to an InvoiceNow-Ready Solution Provider (IRSP), or connecting to InvoiceNow via an IMDA-accredited Access Point Provider (AP). The grant runs from 1 July 2026 to 31 March 2030, or until fully claimed, whichever is earlier.
Full eligibility criteria and how to apply: 361dc.com/grants/gst-invoicenow-grants
3. PSG + SFEC. Stack Them for Maximum Funding
The Productivity Solutions Grant (PSG) and SkillsFuture Enterprise Credit (SFEC) work together, and combining them is where the real savings are.
PSG, run jointly by IMDA and Enterprise Singapore, funds up to 50% of costs when you adopt pre-approved software — including Xero — through an approved PSG vendor like us, capped at $30,000. Since accounting software choice is now tied directly to InvoiceNow readiness, this is the most direct route to a compliant, InvoiceNow-activated setup at half the price.
SFEC gives eligible employers a $10,000 credit that can be used on top of PSG rather than instead of it. Claim PSG first to cut your implementation cost by up to 50%, then apply SFEC credit to what’s left — up to $7,000 of your SFEC balance can go toward productivity schemes like PSG.
Note: the current SFEC tranche expires 30 November 2026, your $10,000 credit will be forfeited and it can’t be extended.
Worked Example: PSG + SFEC in Action
Here’s how the numbers can work out for a typical SME package covering a 12-month software subscription, setup, implementation, personalised training, and 12 months of support:
| Item | Amount (S$) |
|---|---|
| Total package cost (12-month subscription + setup + implementation + training + support) | 4,892 |
| Less: PSG subsidy (50%) | (2,446) |
| Less: SFEC credit applied | (2,152) |
| Net amount payable | 294 |
This is an illustrative example — actual subsidy amounts depend on your package scope, vendor quote, and remaining SFEC balance.
4. Which Grant Should You Choose?
If you’re weighing your options, PSG + SFEC is generally the stronger choice: PSG alone can cover up to $30,000 of your software and implementation cost, and stacking SFEC on top adds up to a further $7,000 — a combined ceiling far above the flat S$1,000 GST InvoiceNow Transition Grant.
Because the Transition Grant covers a different cost bucket (your IRSP/AP subscription) from PSG (your software implementation), eligible businesses aren’t necessarily choosing one over the other — but if you can only pursue one funding avenue, PSG + SFEC delivers the larger payout.
5. Which Accounting Software Is Supported Under GST InvoiceNow?
A number of accounting solutions are InvoiceNow-Ready, but four of the most widely used by Singapore SMEs are
- Xero
- ABSS (formerly MYOB)
- Odoo
- QuickBooks Online
As an accredited IRSP by IMDA, we implement all four of these platforms. Not sure which one fits your business? Talk to us — we’ll walk you through the real differences between them and recommend the right fit for your size, industry, and budget.
Already decided on Xero? See our step-by-step guide to setting up InvoiceNow for Xero.
Get Compliant Before the Deadline Hits
At 361 Degree Consultancy, we help Singapore SMEs set up InvoiceNow correctly the first time, and assist you on application of the PSG, SFEC, and GST InvoiceNow Transition Grant applications. We’re vendor-agnostic and unbiased — we don’t push one software over another, we recommend whichever solution genuinely fits your business. Early adopters get the bonuses; late adopters just get the deadline.
Contact us today at 6515 7906 or enquiry@361dc.com or live chat to check your eligibility and get your e-invoicing transition underway.
