Is E-Invoicing Mandatory in Singapore? Here's the 2025 Update You Need

E-invoicing is becoming the new normal in Singapore’s business landscape. While it’s not yet mandatory for every business, upcoming changes mean it’s worth understanding how it works and why getting started early can save you time, money, and headaches later. The system runs through InvoiceNow, Singapore’s nationwide e-invoicing network built on the Peppol standard. In simple terms, it allows invoices to be sent directly from one accounting system to another, no manual data entry, no PDF chasing, and no email attachments getting lost.

What Is E-Invoicing in Singapore?

It is the direct exchange of invoices between systems in a standardised digital format. In Singapore, this happens via the InvoiceNow network, which is based on the international Peppol standard.

Instead of sending a PDF invoice by email, you send it through InvoiceNow. It arrives instantly in your customer’s accounting software, ready for processing. This means fewer delays, fewer errors, and less manual admin work. For small and medium-sized enterprises (SMEs), it’s a powerful way to save time and improve cash flow.

Upcoming Changes to E-Invoicing Rules

The Government is rolling out mandatory e-invoicing requirements in stages:

1 May 2025: Soft launch for existing GST-registered companies to voluntarily use InvoiceNow.
1 Nov 2025: Mandatory for new companies voluntarily registering for GST.
1 Apr 2026: Mandatory for all new voluntary GST registrants.

While not every business is affected yet, the trend is clear: e-invoicing is becoming the standard.

Adopting it early means avoiding last-minute changes when the rules expand to cover more businesses.

Why Start Using E-Invoicing Now?

Starting now gives your business a head start. Benefits include:

Faster payments: Invoices reach customers instantly, ready for approval.
Lower admin workload: No more manual data entry.
Fewer costly errors: Standardised formats reduce mistakes.
Tax compliance: E-invoices sent via InvoiceNow are valid for IRAS reporting.

Early adoption means you can test the system, train your team, and work out any issues well before compliance deadlines.

Choosing the Right Tool for E-Invoicing

Once you understand the benefits, the next step is choosing the right platform. While there are several systems that connect to InvoiceNow, Xero is a popular choice among Singapore SMEs for its ease of use and smooth integration. Accounting Superhero is a Xero Gold Champion Partner and Certified Advisor, making us well-equipped to help businesses set up and maximise their use of Xero for electronic invoicing.

Through its connection with the Invoici gateway and the Peppol network, Xero lets you send and receive e-invoices without leaving your accounting dashboard. Even if your customers or suppliers don’t use Xero, they’ll still get invoices in the correct InvoiceNow format. Let’s explore how it works.

Getting Started with Xero E-Invoicing

To use e-invoicing with Xero, you’ll need:

A Singapore-based business
A valid Unique Entity Number (UEN) (one UEN per Xero organisation)

Once you have these in place, the setup process is simple. Start by connecting your Xero account to Invoici, which serves as the gateway to Singapore’s InvoiceNow network. When the connection is made, you’ll receive a unique Peppol ID and a dedicated e-invoicing email address. Your CorpPass Admin must then log in via Singpass to authorise the link. After approval, your business will be ready to send and receive e-invoices directly in Xero, streamlining operations while staying compliant with IRAS requirements.

How E-Invoicing Works in Xero

With your Peppol ID linked to Xero, your invoicing process becomes faster, more accurate, and completely digital. This unique identifier connects your Xero account to the InvoiceNow network, allowing you to exchange e-invoices seamlessly with other registered businesses.

Suppliers can send e-invoices directly to your Xero account, where they appear as draft bills ready for review.
You can send invoices straight into customers’ systems, cutting out email attachments and manual data entry.
Electronic Purchase Orders (ePOs) can be received in Xero and converted into draft invoices automatically, saving valuable time.

For an even smoother process, use the SG Peppol Directory to find and share Peppol IDs with your business partners.

Sending E-Invoices in Xero: 3 Easy Steps

Go to Your Invoices: Open from Draft or Awaiting Approval, click Approve & email.
Enter the Peppol ID: Replace colons with hyphens and add @invoi.ci.

Example: 0195:SGUEN123456789M → 0195-SGUEN123456789M@invoi.ci.

3. Fill In & Send: Complete the fields, hit Send, and you’re done.

Pro tip: Save your customers’ Peppol IDs in their Xero contact profiles to avoid retyping.

Special Requirements for Sending to Government Agencies

When invoicing government agencies via Xero and InvoiceNow:

Start the Contact Name with the BU code, then the agency name (e.g., 12345 - Ministry of Finance).
Add the liaison officer’s name in the Primary Person field (max 20 characters, no special symbols).
Keep invoice numbers unique, under 30 characters, no spaces or special symbols.
Dates must follow rules, no future dates or more than seven days backdated.
Include a Description line summarising the invoice content.

Receiving E-Invoices and Purchase Orders in Xero

You can receive e-invoices and electronic purchase orders (ePOs) from any Peppol-registered supplier, even if they are not using Xero themselves. Simply share your Peppol ID with them, and once they send an e-invoice through the InvoiceNow network, Xero will automatically retrieve it and create a draft bill for you to review. You can then check the details, add account codes, and approve it for payment.

When it comes to ePOs, Xero can convert them into draft invoices instantly, ready for approval and sending. This eliminates the hassle of chasing PDF files or manually entering data, keeping your accounts accurate, clean, and efficient.

Final Thoughts

E-invoicing is no longer a distant concept, it’s quickly becoming an essential part of doing business in Singapore. By getting started now, you can enjoy immediate benefits such as faster payments, reduced errors, and less administrative work, while staying fully compliant with IRAS requirements.

As a Xero Gold Champion Partner and Certified Advisor, Accounting Superhero can guide you through the entire setup process, ensuring a smooth transition to e-invoicing. With Xero’s seamless integration with InvoiceNow, you’ll have a secure, efficient, and future-ready solution tailored to your SME.

Start your e-invoicing journey today, contact Accounting Superhero to get started.