Putting GST back on the agenda

THE past few years have been challenging for Singapore businesses as they dealt with the myriad changes and administrative guidance to the Goods and Services Tax (GST) system. From the introduction of customer accounting rules in 2019 and the implementation of the reverse charge regime in 2020, to the staggered GST rate hikes in 2023 and 2024, businesses have had to continuously recalibrate their processes and systems to stay compliant. As tax collecting agents for the government, this is an obligation they must fulfil.

The pace of change shows no signs of abating. In April 2024, the Inland Revenue Authority of Singapore (Iras) announced the progressive implementation of GST InvoiceNow from 2025 onwards. This development is set to have wide-ranging impact on businesses.

What is GST InvoiceNow; why is Iras implementing it?

GST InvoiceNow is an extension of the nationwide electronic invoicing initiative, InvoiceNow, introduced by the Infocomm Media Development Authority (IMDA) in 2019. It enables the direct transmission of invoices electronically from the seller’s accounting system to the customer’s system via the InvoiceNow network. This eliminates manual steps in printing, sending and entering invoice details into accounting systems, streamlining the entire invoicing process. According to a media release from IMDA last April, more than 60,000 businesses are already on the InvoiceNow network.