Singaporean businesses are gearing up for significant changes to the Goods and Services Tax (GST) system with the progressive rollout of GST InvoiceNow starting in 2025. The goal off this initiative, which is an extension of the existing InvoiceNow network, is to simplify invoicing processes, enhance tax compliance, and reduce administrative burdens.
Singapore Businesses to Face Sweeping Changes with GST InvoiceNow Implementation
Public
Other countries
Author: Ivana Picajkić
Category:
Fiscal subject related
Views:
162
Content accuracy validation date:
13.02.2025
Content accuracy validation time:
08:47h
GST InvoiceNow will enable direct, electronic transmission of invoices from a seller's accounting system to a customer's system. This eliminates manual steps like printing, sending, and manually entering invoice details. The Inland Revenue Authority of Singapore (IRAS) and the Infocomm Media Development Authority (IMDA) are pushing for adoption to improve efficiency and compliance compared to the current practice of emailing PDF invoices. Over 60,000 businesses are already on the InvoiceNow network.
One key change is the direct transmission of detailed sales data to the IRAS for tax administration. This will allow the IRAS to access transactional-level data, potentially reducing the number of audits for lower-risk businesses and speeding up GST refunds. It will also enhance the IRAS's ability to detect errors, unusual transactions, and potential tax fraud, leading to more targeted audits.
Newly incorporated businesses applying for voluntary GST registration from November 1, 2025, will be required to comply with GST InvoiceNow. This will extend to all voluntary GST registrations from April 1, 2026. The implementation date for existing GST-registered businesses is expected to be announced soon.
Businesses should assess the compatibility of their current accounting systems and the availability of the required data points. Upgrading accounting systems can be a costly undertaking. Businesses should also review their GST treatment for accuracy to minimize errors, as the IRAS will soon have greater visibility over transactions. Conducting a GST "systems health check" with accredited professionals can help identify potential shortfalls and address compliance gaps.
The rollout of GST InvoiceNow serves as an motive for businesses to prioritize tax compliance. Data is a cornerstone of all tax compliance, hence, businesses need to ensure they have complete and accurate data to comply with tax reporting obligations.
Other news from Other countries
South Africa: New Security Rules for Online Payments
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
As e-commerce fraud rises, new security standards (PCI DSS 4.0.1) will take effect in March 2025, requiring online retailers to secure their entire website, strengthen authentication, and monitor third-party scripts and payment pages. Merchants must assess their compliance level, implement necessary security controls, and document efforts to meet the new requirements, with larger businesses facing... Read more
Singapore’s Move Towards E-Invoicing and Digital Tax Reporting
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
Singapore is introducing mandatory e-invoicing and direct tax data reporting to improve tax compliance, requiring businesses to modernize their accounting systems. A phased rollout begins in May 2025, and companies must adapt to real-time tax reporting to stay compliant and avoid audit risks. Singapore has built a strong digital government system, and businesses are now expected to follow suit wit... Read more
Understanding Sales Taxes in Canada
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
Canada has a complex sales tax system with different taxes at both federal and provincial levels. Businesses must navigate GST, HST, PST, QST, and RST, depending on their location and sales type. Additionally, digital sales taxes apply to non-resident businesses selling digital goods and services in Canada. Proper registration, tax collection, and compliance are essential to avoid penalties and en... Read more
Malaysia: E-invoicing overview
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Malaysia's Inland Revenue Board has revised e-invoicing guidelines, introducing new exemptions and consolidated conditions for self-billed transactions, with provisions set for implementation by July 2025. Malaysia's tax authority, the Inland Revenue Board, has issued some fresh e-invoicing rules. These updates, which came out on January 28, 2025, touch on both the main e-Invoice Guideline (now at... Read more
USA: Nebraska Issues New Rules on Sales Tax Advertising
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
The Nebraska Department of Revenue has updated its sales tax advertising rules, prohibiting businesses from claiming they will cover or exclude sales tax in advertisements. Retailers must list sales tax separately on invoices, and those unsure about compliance can consult the DOR before advertising. The Nebraska Department of Revenue (DOR) has updated its rules on how retailers can advertise sales... Read more
Understanding Digital Reporting and e-Invoicing in the USA
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
E-invoicing allows businesses to exchange invoice data electronically, improving tax compliance and efficiency, though it is not mandatory in the U.S. The government is gradually promoting its adoption, with initiatives like the Business Payments Coalition and the Federal Reserve testing a B2B exchange network. Digital reporting (e-reporting) involves submitting tax-related data electronically to... Read more
Colombia Updates e-Invoicing Rules for Purchasers and Public Utilities
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
On February 13, 2025, Colombia’s DIAN proposed updates to e-invoicing rules, limiting the purchaser information required for invoices and allowing automated ID-based data entry for billing. The changes also restrict public utility invoices to service-related charges unless the user consents, with a 48-hour window for issuing invoices in case of technical issues. On February 13, 2025, Colombia&rsqu... Read more