Efficiency in business processes is crucial for success. One key initiative adopted by Singapore is InvoiceNow, a nationwide e-invoicing network. It enables businesses to streamline invoicing, reduce costs, and speed up payment cycles.
Launched in 2019 as part of the Smart Nation initiative, InvoiceNow has seen significant adoption. Over 50,000 businesses have joined the network, supported by 30+ access points and 170 solution providers. The goal is full-scale adoption across all industries.
HashMicro, an IRAS-approved provider, offers a comprehensive e-invoicing solution for seamless billing. It features customizable templates, automated tax management, and system integration to enhance efficiency.
With the growing adoption of InvoiceNow and solutions like HashMicro, businesses in Singapore can enhance operational efficiency. Leveraging technology ensures smoother transactions and stronger relationships with business partners.
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Key Takeaways
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What is InvoiceNow?
InvoiceNow is Singapore’s nationwide e-invoicing network that enables businesses to exchange invoices digitally via the Peppol framework. It automates invoice transmission between systems, reducing manual work, minimizing errors, and speeding up payments.
Launched in 2019 by the Infocomm Media Development Authority (IMDA), InvoiceNow supports Singapore’s Smart Nation initiative.
Unlike traditional paper or PDF invoices, it facilitates seamless data exchange, ensuring faster payment cycles and enhanced financial accuracy. Businesses of all sizes can benefit from the system’s security, reliability, and compliance with regulatory standards.
The Singapore government has implemented various incentives and mandates to encourage adoption. The Inland Revenue Authority of Singapore (IRAS) plans to make InvoiceNow mandatory for GST-registered businesses by November 2025.
Additionally, newly incorporated businesses can access InvoiceNow for free for one year, promoting digital transformation across industries.
Benefits of Implementing InvoiceNow
Adopting InvoiceNow offers multiple advantages for businesses in Singapore. By automating invoice processing, companies can reduce errors, cut costs, and improve efficiency. Here are some key benefits of using InvoiceNow:
1. Faster payment processing
InvoiceNow enables direct invoice transmission between systems, reducing delays. Payments are processed faster, improving business cash flow and ensuring better financial stability and liquidity.
2. Reduced manual errors
With automated data exchange, InvoiceNow minimizes errors from manual entry. This results in more accurate financial records and fewer disputes, allowing businesses to avoid costly corrections and inefficiencies.
3. Cost savings on paper and processing
Traditional invoicing requires printing, mailing, and storage costs. InvoiceNow eliminates these expenses, reducing operational costs. It also supports sustainability by cutting paper usage.
4. Enhanced compliance and security
InvoiceNow follows the Peppol framework, ensuring regulatory compliance. Secure transactions and fraud prevention benefit businesses, enhancing trust and data protection.
5. Seamless integration with business systems
InvoiceNow Singapore integrates with various accounting and ERP software. This allows businesses to streamline financial workflows effortlessly. Automation reduces administrative workload and improves efficiency.
Eligibility Criteria for Businesses
Businesses in Singapore must meet certain criteria to adopt InvoiceNow. These requirements ensure smooth integration with the nationwide e-invoicing network. Below are the key eligibility criteria:
1. Registered business in Singapore
Only businesses registered with the Accounting and Corporate Regulatory Authority (ACRA) can use InvoiceNow. This includes sole proprietorships, partnerships, and corporations. Registration ensures compliance with local regulations.
2. Valid UEN (Unique Entity Number)
A business must have a Unique Entity Number (UEN) issued by the government. The UEN serves as the business identifier for transactions. It allows seamless invoice exchanges within the Peppol network.
3. Access to Peppol-ready solutions
Companies must use Peppol-registered accounting or ERP software. These solutions enable direct invoice transmission between business systems. IMDA provides a list of approved service providers.
4. Compliance with tax regulations
GST-registered businesses must ensure invoices meet Inland Revenue Authority of Singapore (IRAS) guidelines. InvoiceNow helps companies to adhere to tax reporting standards. Proper compliance avoids penalties and errors.
5. Adoption before regulatory deadlines
GST-registered businesses must adopt InvoiceNow from November 2025. Early adoption benefits enterprises from incentives and ensures a smooth transition before mandatory implementation.
You can also read our article on a guide for Singapore companies to survive in the digital industry and explore strategies for adapting and thriving in the digital era.
Understanding the InvoiceNow Transaction Bonus (ITB)
As Singapore moves towards a fully digital invoicing ecosystem, businesses are encouraged to adopt Singapore invoice financing for seamless, Peppol-based e-invoicing.
The Infocomm Media Development Authority (IMDA) introduced the InvoiceNow Transaction Bonus (ITB) to accelerate adoption. This bonus offers financial incentives to businesses budgeting that actively use the system.
Overview of the ITB initiative
The InvoiceNow Transaction Bonus (ITB) is a financial incentive that Singapore’s Infocomm Media Development Authority (IMDA) introduced to encourage businesses to adopt e-invoicing through the InvoiceNow network.
This initiative aims to streamline invoicing processes, enhance efficiency, and promote business digitalization.
Benefits and incentives offered
Eligible businesses receive an SGD 200 bonus upon successfully transmitting 10 e-invoices via the InvoiceNow network within 12 months from their first e-invoice. This bonus is designed to offset initial implementation costs and motivate businesses to transition to digital invoicing.
Application process and required documentation
No formal application is necessary to receive the ITB. Eligibility is automatically determined based on monthly transaction reports from Access Point providers. To ensure seamless bonus disbursement, businesses should:
- Register on the InvoiceNow Network: Ensure your business has a valid Unique Entity Number (UEN) and is registered on the InvoiceNow network.
- Utilise PayNow Corporate: Set up a PayNow Corporate account linked to your UEN, as the bonus is disbursed through this platform.
By embracing InvoiceNow and participating in the ITB initiative, businesses can modernize their invoicing processes and benefit from financial incentives that support their digital transformation journey.
Preparing for the GST InvoiceNow Requirement
To comply with the GST InvoiceNow Requirement, businesses must adopt a Peppol-ready e-invoicing solution and ensure seamless integration with their tax reporting processes. Here’s how to get prepared:
1. Evaluate and select an InvoiceNow-Ready solution
Businesses must ensure their accounting or invoicing software supports InvoiceNow. The Infocomm Media Development Authority (IMDA) lists approved Peppol-ready service providers, helping companies choose a compliant solution. (IMDA InvoiceNow Guide)
2. Register on the Peppol Network
To use InvoiceNow, businesses must register their Unique Entity Number (UEN) on the Peppol network through an accredited service provider. This registration ensures seamless e-invoice exchange with IRAS and trading partners. (IRAS GST InvoiceNow Requirement)
3. Train staff and update internal processes
Employees handling invoices should be trained to generate and process e-invoices using InvoiceNow. Businesses should also update their internal invoicing workflows to align with Peppol e-invoicing standards for efficiency and compliance.
4. Ensure compliance with GST reporting
InvoiceNow enables automated invoice submissions to IRAS, reducing manual errors and improving tax reporting accuracy. Businesses must ensure their system captures all necessary GST-related details in the required format. (IRAS e-Tax Guide)
5. Leverage government support and incentives
The Singapore government provides financial incentives and technical assistance for businesses adopting InvoiceNow. Early adoption can enhance tax compliance, streamline operations, and reduce paperwork.
6. Monitor updates from IRAS and IMDA
Regularly checking for updates from IRAS and IMDA ensures businesses stay informed about regulatory changes, system improvements, and compliance deadlines. Staying updated helps prevent non-compliance issues.
Businesses can ensure a smooth transition to InvoiceNow by taking these steps, improving invoicing efficiency and tax reporting compliance.
Optimize Your Invoicing with HashMicro’s E-Invoicing Software
HashMicro’s E-Invoicing Software helps businesses streamline their invoicing process by automating invoice generation, reducing errors, and accelerating payment cycles.
With seamless integration into ERP systems, accounting software, and third-party platforms, businesses can manage invoices more efficiently while ensuring compliance with financial regulations.
For businesses transitioning to InvoiceNow, HashMicro’s E-Invoicing Software can be configured as InvoiceNow-ready. This ensures compatibility with the Peppol network for seamless e-invoice exchanges and compliance with GST InvoiceNow requirements.
Key Features of HashMicro’s E-Invoicing Software:
- Invoice Generation – Automatically create and send professional invoices with pre-configured templates, ensuring accuracy and efficiency in billing.
- Tax & Discount Management – Easily apply taxes and discounts based on regulations and business policies, ensuring compliance and accurate financial reporting.
- Online Payment Management – Enable seamless integration with multiple payment gateways, allowing customers to make payments quickly and securely.
- Credit Limit Management – Set and monitor customer credit limits to prevent overdue payments and improve cash flow management.
- Real-Time Invoice Reporting – Gain instant insights into invoice statuses, outstanding payments, and financial trends with real-time reporting and analytics.
Conclusions
InvoiceNow is Singapore’s nationwide e-invoicing network, enabling businesses to exchange invoices digitally via Peppol. This system enhances efficiency, reduces manual errors, and ensures compliance with GST InvoiceNow requirements.
A reliable e-invoicing solution is crucial for businesses to stay compliant and competitive. Automating invoice processes minimizes administrative workload and enhances accuracy. With seamless integration, businesses can effortlessly optimize their invoicing workflow.
HashMicro’s E-Invoicing Software offers automated invoice generation, tax management, online payments, and real-time reporting. Its InvoiceNow-ready system ensures smooth transactions and regulatory compliance. Businesses can enhance efficiency while simplifying their invoicing processes.
Take the next step toward smarter invoicing with HashMicro. Request a free demo today and experience a more efficient, automated invoicing system!
FAQ About InvoiceNow
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Is InvoiceNow mandatory in Singapore?
GST-registered businesses must submit invoice data to IRAS through InvoiceNow-Ready Solutions via the InvoiceNow network. This requirement will be enforced gradually, starting 1 November 2025, for newly incorporated companies that opt for voluntary GST registration.
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Do I need an invoice for customs?
Yes, adding a Harmonized System (HS) code to a Commercial Invoice is typically necessary for international shipments to classify goods and assess the relevant customs duties and taxes.
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Can I invoice without VAT?
A non-VAT invoice does not include VAT amounts or a VAT registration number. Although businesses often store digital records of VAT invoices, this is not mandatory for non-VAT invoices. Additionally, input VAT cannot be claimed from an invoice that excludes VAT.
