S’pore SMEs can expect lower costs, less compliance burden with new and updated measures

SINGAPORE – All GST-registered businesses will be required to submit digital invoices to the Inland Revenue Authority of Singapore (IRAS) by April 2031, as part of new and updated measures to help firms here operate better and maintain Singapore’s reputation as a well-governed, stable place for doing business.

This was announced by Senior Minister of State for Finance Jeffrey Siow, who was speaking at the debate on the Ministry of Finance’s (MOF) budget on Feb 26.

Digital invoices must be submitted via e-invoicing network InvoiceNow.

The new measure is expected to bring about 90,000 more businesses into the InvoiceNow network. Currently, more than 63,000 businesses are on InvoiceNow.

The Government will also provide transitional support such as free InvoiceNow-ready solutions and cash grants to defray operational costs.

Larger businesses that transition early will receive a cash grant of up to $5,000, while smaller companies will receive up to $1,000.

IRAS and the Infocomm Media Development Authority will release more details on the transition timeline and support provided.

Mr Siow noted that small and medium-sized enterprises (SMEs) that do not have large back-office teams can digitalise their processes to reduce paperwork and errors.

He cited a Deloitte study which estimated that small businesses can save up to $20 per invoice by using digital invoices.

“We will do this progressively, prioritising the onboarding of smaller businesses so we can support them better in their transition,” he said in Parliament.

“Many businesses and trade associations have given us positive feedback that they have been able to reduce invoicing errors by using InvoiceNow,” he said, citing I Interior Design, which can automatically issue e-invoices and populate accounting records without having to manually enter data.

InvoiceNow’s underlying e-invoicing standard is also internationally accepted in many other countries, thereby making cross-border transactions easier.

Mr Siow added that Singapore must encourage businesses to use more technology to increase productivity.

He was responding to Mr Saktiandi Supaat (Bishan-Toa Payoh GRC) and Ms Tin Pei Ling (Marine Parade-Braddell Heights GRC), who asked about how the Government can help businesses innovate and enhance processes to be more productive in a more complex global environment.

Mr Siow said that MOF is improving the regulatory environment to reduce compliance costs and respond to business needs.

“We will continue to closely partner businesses, industry associations and workers to maintain Singapore’s position as one of the best places in the world to do business.”

Mr Siow said MOF agencies are also supporting the Inter-Ministerial Committee on Pro-Enterprise Rules Review that oversees efforts to improve regulatory efficiency.

On this front, he noted that the Accounting and Corporate Regulatory Authority (ACRA) is considering whether to exempt more small businesses from the requirement to audit their financial statements, as this will reduce their cost burden and improve cash flow.

ACRA will consult businesses and the audit community for their views later in 2026.

The Government is also making procurement opportunities more accessible for businesses, including with the launch of Tender Lite for information and communication technology (ICT) contracts from April.

Tender Lite is a simplified government tender in Singapore for projects valued up to $1 million.

Senior Parliamentary Secretary for Finance Shawn Huang, who was also speaking in Parliament on Feb 26, said that MOF has been working closely with industry stakeholders such as the Singapore Business Federation (SBF) to expand Tender Lite to ICT procurement.

Singapore will streamline the number of contract conditions so that businesses find it simpler to participate, as well as share risks with businesses, he said.

To share risks, clauses on liquidated damages will be removed where possible, or the liquidated damages for late delivery and service performance will be capped at 10 per cent of the relevant contract value. MOF will also remove the need for security deposits.

“Around 90 per cent of government contracts will benefit from simpler contract conditions, making procurement more accessible to businesses, especially SMEs,” said Mr Huang.

The Government will also tap the latest technology to comprehensively refresh the GeBIZ system – an e-procurement portal where suppliers can engage in e-commerce with the Government.

“The refreshed GeBIZ will go beyond the sourcing stage, covering pre-sourcing and contract management stages. This will consolidate systems that are currently operating separately, and make procurement even more transparent, effective and efficient. This is a multi-year effort,” said Mr Huang.

Artificial intelligence tools will also be integrated into the new GeBIZ system to improve productivity where possible.

MOF will also work with the SBF and Association of Small and Medium Enterprises to ensure the refreshed GeBIZ system meets the needs of users, Mr Huang added.

MOF is also making the Innovative Procurement Partnership – introduced in 2025 – more accessible to SMEs and start-ups by removing the requirement for established track records.

The Government will also share risks with businesses by removing the need for security deposits and liquidated damages by default during the pilot testing phase, Mr Huang said.

“In addition, the Innovative Procurement Partnership is conducted via open sourcing. In other words, any business can participate,” he noted.