E-invoicing is quickly becoming the norm for businesses in Singapore. It helps streamline financial processes, reduce mistakes, and speed up payments. As the government encourages more companies to switch to e-invoicing, it is time to get on board.
Did you know? In 2023, the global e-invoicing market was worth US$ 13.53 billion. By 2032, it is expected to grow to US$60.9 billion, with a yearly growth rate (CAGR) of 17.7% from 2024 to 2032. This growth is driven by e-commerce, advanced IT tools in many industries, and new technologies. Innovations like web-based and software-driven invoicing systems are helping businesses work faster and more efficiently.
This blog will explain e invoice in Singapore, its benefits, and how you can get started. We will also cover what you need to know to stay compliant with local regulations.
What Is E-Invoicing?
E-invoicing is simply the process of sending and receiving invoices electronically. Instead of paper, invoices are created, delivered, and tracked digitally. The big difference is that e-invoices are in a special format. This format makes it easier for computers to process the information without much human involvement.
The Inland Revenue Authority of Singapore (IRAS) is pushing businesses to adopt e-invoicing as part of its plan to make taxes easier and more efficient. By 2025, all businesses in Singapore will need to use e-invoicing to comply with the rules.
The details are automatically processed when you send an e invoice in Singapore. The data in the invoice is in a format that both your accounting system and your customer’s system can read easily, making invoice management faster and more accurate.
Why is E-Invoicing Important for Singapore Businesses?
E-invoice Singapore is not just a passing trend. It addresses the growing need for efficiency in business operations. Here is why e-invoicing is essential for businesses in Singapore.
- Streamlined Processes
E-invoicing speeds up and simplifies the billing process. With just a few clicks, you can create and send invoices, and data does not need to be manually entered. This reduces mistakes and speeds up billing.
Tracking payments is also easier. E-invoices often include automatic reminders for overdue payments. This helps ensure you get paid on time and keeps your cash flow healthy.
- Cost Savings
Using paper invoices costs money. You have to print them, mail them, and wait for them to reach your customer. There’s always the risk that mail could get lost or delayed. With e-invoice, these costs disappear. This is especially important for businesses that send many invoices every month. The savings quickly add up.
- Reduced Errors
Paper invoices often lead to mistakes. Typing mistakes, missing information, and incorrect amounts are common problems. These errors can cause delays and even lead to disputes. An e-invoice, on the other hand, is automatically generated based on data entered into the system. This greatly reduces the chances of mistakes.
- Improved Compliance
In Singapore, businesses must comply with tax laws. E-invoicing makes it easier to stay compliant with these rules. When you send an e-invoice in Singapore, the data is structured to make it easier to report to the tax authorities. This reduces the chance of errors during tax reporting and audit processes.
- Better Business Relationships
E-invoice Singapore can help improve relationships with your customers. It makes the entire billing process faster and more reliable. Customers do not have to wait for paper invoices or deal with delays. They get accurate, clear invoices right in their inbox.
E-Invoicing Implementation Timeline in Singapore
The Inland Revenue Authority of Singapore (IRAS) has set clear dates for when businesses need to switch to e-invoicing. The goal is to make invoicing easier, faster, and more efficient for everyone in Singapore.
In the future, the government will also require e-invoicing for transactions between businesses and the government. However, for now, the rule applies only to business-to-business (B2B) transactions.
GST-registered businesses will need to use a system called InvoiceNow to send their invoices directly to IRAS. This system will replace the old way of sending invoices and make the process more efficient. It will change the four-corner method into a five-corner system for sending data.
Here is the timeline for the e-invoicing rollout in Singapore:
- May 1, 2025: Voluntary Adoption for GST-Registered Businesses
Starting on this date, businesses already registered for GST can choose to use InvoiceNow. By getting on board early, businesses can access grants and other benefits to help with the switch.
- November 1, 2025: Voluntary Adoption for New GST-Registered Businesses
From this date, new businesses registering for GST can also choose to use InvoiceNow. It is still optional, but starting early will help companies connect smoothly with Singapore’s PEPPOL network, making the invoicing process faster and more efficient.
- April 1, 2026: Mandatory e-Invoicing for All GST-Registered Businesses
By this date, e-invoicing will be required for all GST-registered businesses. It will be mandatory for everyone to use the InvoiceNow system. This step will help companies to speed up their invoicing and stay compliant with Singapore’s digital tax system.
E-Invoice Singapore Requirements: What You Need to Know
To start using e-invoice in Singapore, businesses need to meet several rules. These rules ensure they follow local laws and the PEPPOL framework. Here is what companies need to do:
- Register with a PEPPOL Access Point Provider
The first thing businesses need to do is register with a PEPPOL Access Point Provider. These are certified providers that allow businesses to send and receive electronic invoices through the PEPPOL network.
- Use the PEPPOL BIS Format
In Singapore, businesses use the Singapore BIS Billing 3.0 format for electronic invoices. This format is based on the PEPPOL BIS (Business Interoperability Specifications) but has been adjusted to meet Singapore’s needs.
Starting in 2025, the required format will switch to the PEPPOL PINT (Peppol International Network Transport) format. This change will bring Singapore’s e-invoicing system closer to international standards.
Key Differences:
- PEPPOL BIS: This is a global standard for exchanging electronic documents.
- Singapore BIS Billing 3.0: This is a version of PEPPOL BIS, tailored for Singapore. It includes adjustments for tax rules (such as Goods and Services Tax – GST).
- PEPPOL PINT: This newer format improves on PEPPOL BIS. It focuses on making electronic document exchange faster and more efficient, while also supporting more countries.
- E-Signature and Archiving Rules
While not required, businesses can use e-signatures to make their electronic invoices more secure. E-signatures help prove that the invoice is valid.
In addition, businesses must keep invoices in their original format for at least five years. This rule ensures that invoices can be accessed, read, and checked for audits.
- Follow Local Tax Rules
Invoices must follow Singapore’s tax rules. This means businesses need to show the correct GST (Goods and Services Tax) and other tax information on their invoices. Getting these details right is important to avoid legal problems.
Why is Peakflo the Best E-Invoicing Solution for Singapore Businesses?
Peakflo offers an intuitive and efficient e-invoicing solution that is designed to help businesses in Singapore streamline their invoicing process. Here is why Peakflo stands out:
- Proforma Invoice Validation
Peakflo’s Proforma Invoice Validation makes it easy to check and validate invoice details by your customers before issuing the invoice. Customers can approve the invoice in one click using the customer portal. They can also ask questions or raise disputes if needed. Disputes can be specific to certain items, with reasons chosen from a custom list. Notifications help the team resolve issues quickly, and status tracking shows updates in real-time.
- Create and Send Invoices in Seconds
With Peakflo, businesses can create and send professional invoices in just seconds. Create e-invoices with your company branding and customize the line items, discounts, and tax rates. This saves your finance team time and eliminates the need for manual data entry, helping you focus on what matters.
- Automate Recurring Invoices
Peakflo’s invoicing software streamlines recurring billing with automated workflows. You can schedule invoices to go out every month without manual effort. It also sends reminders through SMS, WhatsApp, and email to ensure timely payments. For delayed payments, escalation options like legal notices or demand letters are available. These features adapt to your customer’s payment habits, helping your business improve cash flow and cut DSO by at least 15 days.
- GST Invoicing Made Simple
Peakflo simplifies the GST invoicing process. You no longer have to calculate and add tax details to your invoices manually. Peakflo automatically applies the correct GST rates to the goods and services invoiced, reducing errors and ensuring compliance with local tax regulations.
- Built-in QR Codes for Authentication
To make your invoices more secure and authentic, Peakflo allows you to add QR codes to your invoices. These codes can be scanned for quick validation, ensuring the invoice is legitimate and meets Singapore’s regulatory requirements.
- HSN/SAC Codes for Compliance
Peakflo automatically includes the HSN/SAC codes in your invoices. This feature ensures that your invoices are compliant with GST regulations, making it easy to track and validate goods and services following Singapore’s tax system.
- Streamlined Approval Workflows
Peakflo takes the hassle out of invoice approvals. You can set up automated approval policies, so once an invoice is created, it follows a pre-set approval flow. This streamlines the process and reduces the chances of delays, helping your team save time and improve efficiency.
- Secure and Efficient E-Invoicing
Peakflo is certified by the Singapore FinTech Association (SFA) and recognized by the Monetary Authority of Singapore (MAS). We operate on a secure platform, ensuring that your invoices are sent and received with compliance. The solution is fully integrated with the Singapore e-invoicing network, making it easy to comply with local regulations and streamline financial operations.
Conclusion
E-invoicing is becoming an important tool for businesses in Singapore as the country moves towards digital transformation. While it is not required yet, using Peakflo can help your business in many ways. It improves accuracy, boosts efficiency, and reduces costs.
By starting e-invoicing now, your business can prepare for future rule changes, improve cash flow, and make invoicing faster and easier. This will help your business stay ahead and run more smoothly.
Curious about how e-invoicing can work for your business? Book a demo tour and discover how easy it is to streamline invoicing, improve accuracy, and save time. See for yourself why businesses trust Peakflo.
