Singapore Encourages the Use of E-Invoicing With Peppol
Singapore is continuing its drive to promote e-invoicing with the aim of helping companies improve efficiency, reduce costs, streamline payment cycles and minimize environmental impact.
The country launched its national e-invoicing network in 2019, based on the PEPPOL infrastructure, making it the first country outside Europe to use the European network to exchange e-invoices between private enterprises. The connection of governmental bodies to the PEPPOL network in 2020 has extended e-invoicing in Singapore to B2G.
Since January, public administration suppliers can opt to send e-invoices to governmental bodies via the PEPPOL network by contracting an accredited access point.
In order to promote e-invoicing in Singapore, the body responsible for the country's e-invoicing system, Infocomm Media Development Authority, or IMDA, launched InvoiceNow, a series of initiatives including financial compensation for companies adopting e-invoicing. One is the Chain Leader Grant, a program to subsidize integration costs related to the roll-out for strategic companies in the business community, i.e. companies with a client/supplier portfolio of at least 500 partners.
The government is also offering an E-Invoicing Registration Grant, which makes companies that register with PEPPOL via a certified service provider this year eligible to receive a subsidy of 200 Singapore dollars.
Both Chain Leader Grant and E-Invoicing Registration Grant can be applied for until the 31st of December, 2020.
About PEPPOL in Singapore
Pan-European Public Procurement Online, or PEPPOL, is a set of specifications designed to streamline public procurement processes between companies and governmental bodies regardless of their location or the systems they use. Thanks to its versatility and international scope, it isn’t only being adopted in Europe or the B2G sector, but is being used to exchange e-documents between entities of all kinds globally.
In 2018, the government of Singapore decided to develop its e-invoicing system using European standards and PEPPOL infrastructure with the aim of promoting international commerce.
The country's PEPPOL authority, IMDA, is responsible for assigning access points and defining technical specifications for the e-invoicing system.
Companies that would like to invoice electronically in Singapore must have an accredited access point and an e-invoicing system capable of sending invoices in the PEPPOL standard.