In recent years, the use of e-invoicing in Asia has experienced significant growth. This has led to the region being on track to achieve one of the highest annual growth rates for e-invoicing.
As a result, many countries have started to regulate the issuance of e-invoices through their own platforms or through PEPPOL, such as Singapore. Furthermore, national formats have been adopted for business-to-business (B2B) and business-to-government (B2G) transactions.
When was e-invoicing first used in Singapore?
Singapore was an early international adopter of e-invoicing. However, it took almost two decades for the necessary steps to be taken to make it mandatory.
In 2003, e-invoices began to be used and, by 2008, their use was promoted in Singapore for B2G transactions. However, it took another 10 years for the mandatory implementation of e-invoice exchange between public bodies and their suppliers.
In 2019, Singapore became the first non-European country to adopt the PEPPOL e-invoice format.
This move was motivated by Singapore's strong trade relationship with Europe and the desire to facilitate business transactions with European partners.
Who can exchange e-invoices in Singapore?
In the B2G area, it is mandatory for all public bodies and their suppliers to send and receive electronic documents. However, in the absence of current legislation, companies have the option to use e-invoicing in B2B transactions.
Invoice Now is the e-invoice platform in Singapore
The Singaporean Government has announced its plans to mandate B2G e-invoicing through its InvoiceNow platform. In October 2023, the Inland Revenue Authority of Singapore (IRAS) confirmed the success of a trial of its InvoiceNow e-invoicing platform, based on the Peppol standard and exchange network that Singapore adopted in 2019.
The objective of the test was to determine whether InvoiceNow could be upgraded from its 4-corner model to a 5-corner model with Peppol.
The implementation of InvoiceNow as the mandatory platform for B2G e-invoicing has been highly successful. This will result in easier GST (Goods and Services Tax) compliance for companies, leading to fewer audits, faster refunds, and improved collaboration between IRAS, IMDA, the General Accounting Department, and businesses.
Furthermore, InvoiceNow enables international transactions with businesses connected to the PEPPOL network.
Implementation Schedule
IMDA plans to migrate from the current Peppol BIS specifications to the PINT SG specifications. The change to the e-invoice format in Singapore will be carried out in three phases: preparation, implementation, and withdrawal.
- Preparation phase. March 1, 2024 - December 31, 2024.All companies must comply with PINT-SG and PINT receiving capabilities.
- Implementation phase. January 1, 2025 - March 31, 2025. During this phase, SG BIS 3.0 registration will be removed from the SGNIC-SMP, and PINT-SG receiving capability registration will be mandatory.
- Phase out. April 2025. The receiving capabilities of all SG BIS 3.0 participants will be removed from the SGNIC-SMP.
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