Electronic invoicing in Singapore

Until now, Singapore has had a GST limit on the import of low-value goods. This is to be eliminated possibly from 2023. Similar reforms have already been implemented in Australia, New Zealand, and the EU.

The following changes are now under consideration by the Ministry of Finance:

• Removal of the GST exemption for sales of imports not exceeding 400SGD from 1 Jan 2023.
• Instead, B2C sellers should register and charge GST to their online customers when the GST threshold is exceeded.
• If the SGD 400 threshold is exceeded, the existing GST import procedures will apply.
• Introduce GST on non-digital B2C services provided by foreign vendors, such as live interaction with overseas education providers, fitness training, and telemedicine.

In 2019, the Singapore government launched an e-Invoicing scheme for the country in collaboration with the PEPPOL network. This network is designed to ensure that e-invoicing continues to advance in the private sector. However, e-invoicing is not yet mandatory, but more and more companies are being urged to switch to the electronic format.

Also, a channel was established in January 2020 for suppliers to submit their invoices electronically. This channel has become the preferred channel for suppliers and shows that e-invoicing is becoming more prevalent in Singapore.

It is now important that the private sector also develops in terms of e-invoicing. If taxpayers decide to voluntarily prepare their invoices in electronic form, they will receive a grant from the government covering 50% of the implementation costs. In this way, small and medium-sized companies, in particular, are supported in converting their systems.