InvoiceNow Is Mandatory for GST-Registered Businesses. Here's What You Need to Do
InvoiceNow is mandatory for Singapore's GST-registered businesses by 2031. What it is, when it kicks in, and how to claim up to $5,000 in funding.
If you're a GST-registered business in Singapore, your invoicing process is about to change, whether you're ready or not.
InvoiceNow, the government's nationwide e-invoicing network, will become mandatory for all GST-registered businesses by 2031. The rollout has already started. New GST registrants have been required to comply since November 2025. If you registered before that, your deadline is coming.
The good news: there's up to $5,000 in government funding to help you make the switch. Most businesses that qualify aren't claiming it.
Here's everything you need to know without the government-speak.
What InvoiceNow Actually Is
InvoiceNow is Singapore's e-invoicing network. Instead of emailing a PDF invoice and hoping the other party's accounts team processes it correctly, InvoiceNow sends structured invoice data directly from one accounting system to another, automatically and in a standardised format.
Think of it as the invoicing equivalent of PayNow. Before PayNow, you had to share bank account numbers and trust the transfer went through. PayNow simplified that to a single identifier. InvoiceNow does the same for invoices between businesses.
The technical backbone is Peppol, an international standard used across Europe, Australia, and now Singapore. IMDA became the first Peppol Authority outside Europe when it adopted the framework in 2018. In 2021, IMDA rebranded it to InvoiceNow to better resonate with local businesses already familiar with PayNow.
The network connects businesses through accredited Access Point Providers (software companies that plug into the InvoiceNow infrastructure). If your accounting software is InvoiceNow-ready, you're already most of the way there.
Who Needs to Comply, and When
The GST InvoiceNow Requirement is being rolled out in phases:
From November 2025: All newly GST-registered businesses must use InvoiceNow-enabled software from the start.
By 2026-2027: Larger GST-registered businesses (annual turnover above a certain threshold) will be brought in. IRAS has signalled this group will be phased in during this period.
By 2031: All GST-registered businesses must comply, regardless of size.
If you're a small GST-registered business, 2031 might feel distant. It isn't. Accounting software transitions take time. Training your finance team takes time. And the funding won't be available forever.
More importantly: the businesses that adopt early will have a genuine operational advantage: faster payment cycles, fewer invoice disputes, cleaner audit trails for IRAS.
What Changes For Your Business
Three things, practically speaking.
1. Your accounting software needs to be InvoiceNow-ready. This means it's connected to the InvoiceNow network via an accredited Access Point Provider. Popular options that already support this include Xero, QuickBooks, MYOB, and a range of Singapore-specific accounting platforms. IMDA publishes a full list of InvoiceNow-Ready Solution Providers (IRSPs) on its website.
2. You transmit invoice data to IRAS automatically. When you issue a GST invoice through an InvoiceNow-enabled system, the invoice data goes directly to IRAS via the network. This replaces (or supplements) the manual GST return submission process for invoice data. It also creates a real-time audit trail.
3. Your business-to-business invoicing becomes structured. If your customer is also on the InvoiceNow network, they receive the invoice directly into their accounting system. No PDFs. No manual data entry. No "I didn't receive your invoice" disputes three weeks after the fact.
For most SMEs, the change is simpler than it sounds. If you're already using modern accounting software, it's often a matter of enabling InvoiceNow in the settings and updating to a version that supports it. The complexity depends on how customised your current invoicing setup is.
How to Claim the $5,000 Funding
The government isn't just mandating this. It's also helping you pay for it.
Through the Productivity Solutions Grant (PSG), GST-registered SMEs can claim up to 50% of qualifying costs for approved InvoiceNow-ready accounting software, subject to a cap. SBR reports the available funding at up to $5,000 per business.
To claim:
- Check the list of PSG-approved InvoiceNow-ready solutions at GoBusiness (gobusiness.gov.sg) or IMDA's website.
- Select an approved solution.
- Apply for the PSG grant before purchasing or subscribing.
- The vendor implements the solution.
- Claim reimbursement through GoBusiness after the solution is in use.
The PSG is administered by Enterprise Singapore. You need to apply before making the purchase. You cannot claim retroactively.
One practical note: if you're already paying for accounting software that's InvoiceNow-ready, check whether your current subscription is listed as PSG-eligible. Some businesses are sitting on compliant software and haven't claimed anything.
The Actual Risk of Waiting
This is where some business owners switch off, assuming 2031 is someone else's problem to solve.
It isn't.
First, the IRAS audit exposure. When you're on InvoiceNow, every GST invoice you issue creates an automatic data record. When you're not, you're operating on the older system, one that requires manual submission and leaves more room for discrepancy. As more of your suppliers and customers go digital, invoice reconciliation across different systems becomes messier, not easier.
Second, the payment cycle argument. Businesses that send InvoiceNow-formatted invoices to buyers who are also on the network get processed faster. There's no "send PDF, wait for accounts to open it, key in the data, approve payment" cycle. The invoice lands in the buyer's system already formatted and ready to approve.
Third, the funding won't last. PSG support levels and eligible vendors change. The $5,000 available today may not be available in 2028 when you decide to finally tackle this.
Three Questions to Answer This Week
If you're a GST-registered business, answer these:
1. Is your current accounting software InvoiceNow-ready? Check IMDA's approved vendor list. If yes, you may just need to enable the feature. If no, you need to plan a migration.
2. Have you applied for PSG funding? If your software upgrade qualifies, the grant application needs to happen before the purchase.
3. Do you have a transition timeline? Even if your mandatory deadline is 2028 or 2031, planning now avoids a scramble when IRAS starts enforcement communications.
For businesses with simple invoicing setups (a handful of clients, standard services, no complex billing), this is a one-afternoon project once you've chosen your software. For businesses with high invoice volume, custom pricing structures, or multiple billing entities, it warrants a proper systems review.
If you're in the middle of a website or systems upgrade and want to make sure your digital infrastructure is set up to handle compliance requirements like InvoiceNow alongside your marketing, Magnified's web development team can help you build systems that are both customer-facing and compliance-ready.
Disclaimer: This article is for general informational purposes only. Requirements may change. Please verify InvoiceNow deadlines, PSG eligibility, and funding amounts directly with IRAS (iras.gov.sg) and IMDA (imda.gov.sg) or your accountant before making decisions.