A few things you should know about e-invoicing in Singapore.
- Only 21 percent of businesses in Singapore were using electronic invoicing as of 2019.
- The media and education sectors are at the forefront when it comes to adopting e-invoicing in Singapore.
- The Singapore government launched a nationwide e-invoicing network in collaboration with PEPPOL in 2019 to accelerate the adoption of electronic invoicing by the private sector.
- A channel created by the Singapore government for suppliers to submit e-invoices in January 2020 has since become the most preferred channel for suppliers.
The stats above offer the clearest indication that Singapore’s adoption of e-invoicing is gathering pace, and businesses have an opportunity to automate their accounts payable.
Most importantly, by shunning paper invoices and shifting to e-invoices, players in Singapore’s private sector can transform the way they connect with trading partners and suppliers.
How is Singapore Rolling Out e-Invoicing?
The Infocomm Media Development Authority (IMDA) is leading Singapore’s implementation of e-invoicing via PEPPOL. IMDA is the first PEPPOL authority to operate outside Europe.
This PEPPOL ready solution got its accreditation in 2019, and more than 50 PEPPOL service providers have so far connected to the network.
As a PEPPOL authority in Singapore, IMDA;
- Approves and certifies PEPPOL Access Point providers in Singapore
- Accredits PEPPOL-ready Solution Providers in Singapore.
- Specifies country-specific regulations and technical standards under the PEPPOL framework.
- Governs the compliance of the PEPPOL framework.
- Promote the adoption of PEPPOL e-invoicing in Singapore
E-invoicing in Singapore – a grant from the government to get started
Even though electronic invoicing in Singapore isn’t mandatory, the authorities are urging private businesses and organizations to leverage digitization of invoices.
More specifically, the government launched the e-invoicing registration grant to encourage suppliers to adopt e-invoicing. The grant covers 50 percent of the implementation cost up to S$ 150,000 or an equivalent of US$107,000.
That way, small and medium enterprises that choose to implement electronic invoicing will receive a grant of up to S$200 or an equivalent of US$140.
It is essential to mention that all businesses are free to adopt e-invoicing and therefore qualify for the grant.
What Does e-Invoicing Mean for Businesses in Singapore?
First of all, e-invoicing makes paper invoices obsolete. No printing, email attachments, or mailing.
The use of e-invoices will provide a host of benefits for Singapore companies. These include;
- Lowering invoicing processing costs by up to 90 percent.
- Speeding up the time it takes to process invoicing resulting in early payment discounts.
- Access to super-responsive accounting software to support sellers.
- Better visibility and transparency in the supply chain.
- Improved relationship between buyers and sellers due to fewer complaints from either side.
- Better fraud mitigation and risk management.
- Straight forward cross-border trade with other businesses connected to the PEPPOL e-Invoicing network.
How to Get Started With E-invoicing in Singapore
Indeed, there’s every reason for the private sector in Singapore to adopt electronic invoicing.
What follows is a step-by-step guide on how you can roll-out the use of e-invoices in your business.
The first step toward joining Singapore’s e-invoicing network is to choose a PEPPOL certified Access Point provider. Unimaze is one such provider.
Even though there are a couple of Access Point providers in Singapore, you should be sure to work with one that can handle your business’s short and long-term needs.
So, before you settle on Singapore based PEPPOL Access Point provider, here’s what you need to ask them;
How Long Will it Take to See the Value of the e-Invoicing Software?
Sure, implementing and eventually adopting an e-invoicing solution can be a rigorous and lengthy procedure. But it doesn’t have to be.
At Unimaze, we’ve invested in innovative technology for quick implementation. That way, you can start to enjoy the value of electronic invoicing immediately.
The point is; before you choose a Singapore service provider, make sure that you’re acquainted with the provider’s implementation procedure and how long it’ll take to enjoy the benefits.
Is the e-Invoicing Software Compatible With Various EDI Formats?
The last thing you want is to integrate electronic invoicing software into your accounting system only to realize you can receive e-invoices from your trading partners.
Therefore, it makes perfect sense to find out if your Singapore Access Point provider offers translation services.
The idea is to make sure that you can receive e-invoices from other businesses that aren’t using the same EDI format as yours. Think of it as a way of ensuring your e-invoicing infrastructure is as universal as possible.
True, the PEPPOL standards are straightforward. Throw the e-invoicing registration grant in Singapore into the mix, and every business will want to implement the use of e-invoices.
Still, it is a good idea to find out if your Access Point provider offers the platform for optimal adoption.
Apart from e-Invoicing, What Else Can the Access Point Provider Offer?
The thing is, digitizing the invoicing process offers your business the foundation to implement innovation across the entire P2P process and more.
Note – Not every service provider offers the solutions required to digitize more than your invoices.
So, be sure to ask your provider to give you a list of other services they offer apart from electronic invoicing.
Of course, the more the services, the better.
The best Singapore Access Point provider should offer a global reach.
You see, the essence of connecting to the PEPPOL e-invoicing network is to allow you to invoice your trading partners in and outside Singapore swiftly.
Of course, that’s not going to happen if your PEPPOL Access Point provider in Singapore doesn’t have a global reach.
How Vast is the Provider’s Reach?
– Getting You Started With e-Invoicing in Singapore
The time to get connected to an e-invoicing software Singapore solution is now.
To begin with, you don’t have to bear the entire implementation cost. The e-invoicing registration grant will meet you halfway, allowing you to integrate an e-invoicing solution into your business without leaving a hole in your budget.
Unimaze is an IMDA-approved PEPPOL Service Provider and a global PEPPOL accredited Access Point provider.
Our invoicing framework integrates fully with your ERP, enabling you to send and receive e-invoices from any company or agency in Singapore and around the world.
On top of that, we offer other solutions including electronic purchase order management, accounts payable automation, and a host of other cloud-based solutions.
Contact us today to get your business connected to electronic invoicing.
E-invoicing in Singapore – FAQ
- What is InvoiceNow?
InvoiceNow is the new name adopted by Singapore’s nationwide e-invoicing network.
Further, this is a nationwide electronic invoicing method that seeks to facilitate the direct transmission of invoices from one business to another in a structured digital format across accounting systems.
InvoiceNow operates on the open standard PEPPOL network and aims to help Small and Medium Enterprises (SMEs) and Large Enterprises (LEs) realize the benefits of e-invoicing.
- Can an Individual issue an invoice in Singapore?
Yes. You can issue an invoice in your name with having to register a sole proprietorship. Still, you’ll need to declare your personal income.
- Will the IRAS be able to access my e-Invoice?
No. The current regulations don’t allow IRAS to access your invoice. Even so, you need to abide by IRAS tax regulation as is the norm.
- Who are the Access Point Providers, and where do I find them?
IDMA, the body acting as the PEPPOL Authority in Singapore, publishes a list of accredited Singapore Access Points on their official website.
You can also find a list of all international PEPPOL certified Access Point providers on PEPPOL’s official website.
- Where can I find more technical information about PEPPOL Invoicing?
You can get the technical specifications and resources you need to implement PEPPOL-compliant e-invoicing solutions and services at https://peppol.eu/support/.
- What is IMDA Grant?
The e-Invoicing Registration Grant (ERG) is funding from the IMDA in collaboration with the ESG (Enterprise Singapore) to help businesses in Singapore transition to digitization.
The grant will enable businesses to adopt e-Invoicing using the existing or new ERP solutions. That way, the finance department employees can work remotely and, most importantly, create an efficient and timely payment system.
The IMDA grant offers businesses in Singapore a one-time payment of $200 per UEN (Unique Entity Number) when they connect to the e-Invoicing Network.
Note – The grant is only accessible to valid and active businesses registered in Singapore on or before 25th March 2020.
PayNow Corporate will send the payment to the registered UEN.
- How Much Does it Cost to Shift to e-Invoicing in Singapore?
The cost will depend on the Access Point provider that you choose to work with. At Unimaze, we offer different e-Invoicing solutions and value-added services to match your specific business needs. Contact Unimaze support to find out more.