Invoicing and Tax regulation in Singapore

Invoicing Regulation

In Singapore, the Invoicing Regulation requires that all businesses must keep a proper record of all transactions conducted in the course of their businesses. Businesses are also required to issue invoices to their customers for the sale of goods and services. This regulation is mandatory and noncompliance may result in penalties.

Real-time Reporting / Fiscalization

There are no mandatory real-time reporting or fiscalization requirements in Singapore. However, businesses are encouraged to maintain up-to-date financial records for auditing and reporting purposes. Most businesses use digital tools to manage financial transactions and provide real-time financial insights.

E-Invoicing

E-Invoicing is a rising trend in Singapore under the Nationwide E-Invoicing Initiative. The operation is based on the international Peppol standard, which enables businesses to send and receive e-Invoices seamlessly. E-Invoicing in Singapore is not mandatory, but encouraged by the government, leading to substantial improvement on efficiency and productivity in businesses.

VAT/GST/Tax Compliance

Goods and Services Tax (GST) in Singapore is 7%. All businesses with an annual turnover of more than SGD 1 million must register for GST and it is mandatory for their products and services to be GST-compliant. Businesses are required to file GST returns to the Inland Revenue Authority of Singapore (IRAS) periodically, subject to their annual turnover and tax period scheme. IRAS encourages e-Filing of GST returns and has numerous guides for businesses to follow.

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