How Xero InvoiceNow Is Changing the Game for Singapore Businesses

Singapore has long been a leader in digital innovation, and the move toward e-invoicing is its latest step forward. Since its launch in 2019, the nationwide InvoiceNow network (built on the secure Peppol framework) has become the go-to channel for submitting invoices to government agencies¹.

From 2025, all GST-registered companies will be required to use e-invoicing, making the shift from paper or PDF invoices no longer optional.

Xero makes this transition seamless with its built-in InvoiceNow. This guide explores what the switch to InvoiceNow means for Singapore businesses, and how to set it up with Xero accounting platform.

We'll also elaborate on how businesses using Xero could potentially save more on international payment fees when they use a Wise Business Account to manage their money.

Table of contents
The regulatory shift to e-invoicing in Singapore How Xero integrates with the InvoiceNow network Practical steps for InvoiceNow setup using Xero Future implications and international capabilities

The regulatory shift to e-invoicing in Singapore

What began as a voluntary initiative is now moving into a phased rollout with clear timelines for companies to comply.

Currently, e-invoicing for both B2B and B2G transactions is not mandatory, but the Infocomm Media Development Authority (IMDA) strongly recommends it. More importantly, invoices issued through InvoiceNow are fully valid for tax purposes.

Timeline for mandatory InvoiceNow adoption

The Inland Revenue Authority of Singapore (IRAS) has also announced plans to expand InvoiceNow. They plan to start with a voluntary soft launch that allows GST-registered companies to transmit invoice data directly to IRAS through InvoiceNow solutions.

This requirement will be introduced gradually as per the following schedule²:

• 1 May 2025: Early adoption begins for all existing GST-registered businesses that wish to transmit invoice data to IRAS via InvoiceNow voluntarily.
• 1 November 2025: Newly incorporated companies that voluntarily register for GST must adopt InvoiceNow.
• 1 April 2026: All new voluntary GST registrants, regardless of incorporation date, must adopt InvoiceNow.

The strategic setup of these milestones reflects the Singapore government’s commitment to making e-invoicing a standard while allowing businesses time to adjust and adapt.

Benefits of e-invoicing for business

As a key driver of business digitalisation in Singapore, InvoiceNow delivers efficiency gains at a national level. Today, the network connects over 60,000 businesses and is supported by over 200 service providers³.

It’s commendable how InvoiceNow levels the playing field for many SMEs by providing access to automated, efficient processes once reserved for large corporations. Quite impressively, these advantages go beyond basic compliance.

Key benefits you’ll notice once the system is in place are:

• Faster GST refunds and smoother compliance: Digital records simplify submissions and speed up processing.
• Hassle-free financial reporting: Use Xero’s classification codes to sail through mandatory reporting to IRBM.
• Automated tools for ultimate accuracy: Let Xero send monthly consolidated reports directly to IRBM and cut out human errors for good.
• Competitive advantage: Stay aligned with global e-invoicing standards, boosting credibility in both local and international markets.
• Long-term cost savings: Reduced paperwork, fewer errors, and faster payments quickly outweigh the initial setup costs.

Sync your Wise Business account with Xero or other popular accounting platforms today to eliminate manual data entry and cut down on cross-checks.

➡️ Learn more about connecting Wise to your accounting

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How Xero integrates with the InvoiceNow network

As noted earlier, InvoiceNow uses the Peppol-based e-delivery network, initially developed in Europe, to send invoices directly between finance systems. The features that stand out in it are:

High-security infrastructure powered by Peppol

The strength of this framework lies in its security and reliability of the Peppol network. It ensures trusted exchanges with the following:

• Each access point is verified using a PKI certificate, which ensures that only authorised businesses can send or receive e-invoices.
• All data is encrypted with SSL. This protects financial information from being intercepted during transfer.
• Every e-invoice is digitally signed. This proves the document is authentic and has not been altered.
• Receiving systems check sender signatures. This helps prevent fraudulent or tampered invoices.
• Invoices go directly from sender to receiver. No third party, including government agencies, can access the content.

These measures guarantee that e-invoices and related documents are delivered safely and directly to the intended recipient.

Integration with smart features of Xero

Xero’s integration with InvoiceNow automates many accounting workflows for SMEs:

• Direct bill reception: E-invoices sent through InvoiceNow arrive in Xero as draft bills, with supplier details auto-filled and manual data entry removed.
• Sending e-invoices: Businesses can send invoices directly to other registered companies and government agencies. The system automatically verifies the recipient’s Peppol ID and provides real-time status tracking of sent invoices.
• Electronic purchase orders (ePOs): These are received in Xero as draft invoices for easy processing.

In short, Xero and InvoiceNow make invoicing less draining than before.

They reduce manual work while keeping everything secure and compliant.

💡If you’re comparing Xero with other accounting tools, check out our guide on QuickBooks vs Xero in Singapore for a deeper look.

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Practical steps for InvoiceNow setup using Xero

Registration and initial setup

The table below shows what registration and initial setup for InvoiceNow using Xero should look like:

Steps	Requirement	Notes
Xero subscription	Must have an active Xero plan (any tier)	InvoiceNow capability is part of the standard Xero offering in Singapore.
Singapore UEN and CorpPass	Business must have a valid UEN and access to CorpPass	CorpPass is used to authenticate the business during registration.
Registration via Invoici	Use the Xero-integrated Invoici app (via my.invoici.net)	Log in with Xero, select your organisation, and proceed to register.
CorpPass authorisation	Authorise using CorpPass (often via QR code / SingPass)	This verifies your business identity with IMDA standards.
Receive Peppol ID and email address	System issues a unique Peppol ID and Xero InvoiceNow email	All Peppol IDs in Singapore start with the prefix “0195:SGUEN…”⁴

Sending and receiving e-invoices

The subsequent steps are:

1. Share your Peppol ID with suppliers so they can send invoices directly into your Xero account.
2. To send an e-invoice, create the invoice in Xero and click “Approve & email”, entering the recipient’s InvoiceNow email address.
3. Incoming e-invoices appear automatically as draft bills within Xero and are ready for review and approval.

💡You can also create and send your own invoices to your clients with Wise Business

Best practices for adoption

Keep the following pointers in mind during implementation:

• Maintain traditional invoicing as a fallback since not all trading partners may adopt InvoiceNow immediately.
• Regularly monitor your Draft Bills folder in Xero for incoming e-invoices.
• Define standard operating procedures and train your team on the new workflow.
• Keep your trading partners’ Peppol IDs updated in your Xero contact records.

Future implications and international capabilities

Peppol international (PINT) specifications

The Peppol International (PINT) Billing specification for Singapore (PINT-SG) is designed to meet the country’s specific requirements. It also includes its Goods and Services Tax (GST) framework. This supports local payment methods such as PayNow and Giro, ensuring smooth integration with domestic business practices.

As e-invoicing adoption expands, cross-border trade has become a key priority. The broader PINT specifications enable businesses to send e-invoices internationally without adapting them to each country’s domestic rules. This global standard simplifies international invoicing by handling different taxes and currencies, making it easier and more reliable for companies to enter new markets.

Expanding the digital process

The network is no longer limited to e-invoices. Businesses can now send and receive documents like electronic Purchase Orders (ePOs) and Invoice Responses. This makes the whole buying and payment process more digital, resulting in less manual work and enhanced supply chain efficiency.

It doesn’t just end here. The framework tries to stay in the tech loop and introduce new features for all its users.

Xero also supports InvoiceNow with features like direct bank feeds, tools like Hubdoc that scan and read receipts, and easy bank reconciliation. These tools give businesses a quicker, safer way to manage invoices, while supporting Xero’s aim of helping SMEs grow⁵.

Here’s what you can avail with each of these features:

• Direct bank feeds link Xero with central Singapore banks, automatically pulling in transactions to speed up reconciliation.
• Hubdoc and OCR tools let businesses capture receipts and bills from mobile, email, or uploads. Key details are extracted and synced into Xero, which is ready to match with bank feeds.
• One-click reconciliation makes it easy to match and approve transactions, with Hubdoc uploads and bank feeds working together to reduce manual work.

Note that this framework includes compliance support. It updates automatically with Singapore tax rules, including GST changes, so businesses can stay compliant without extra effort.

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Conclusion

With Singapore pushing forward its digital invoicing goals through InvoiceNow, businesses can enjoy smoother and accurate financial workflows. But while Xero and InvoiceNow take care of the invoicing process, the fact remains that sending money overseas to pay your invoices can still be tricky. Slow transfers, high conversion fees, hidden exchange rate markups, other hidden charges and complicated processes are common headaches.

💡Whether you're handling one-off invoices, recurring payments, or mass payouts, Wise Business makes it easy to simplify your financial operations and maximise profits.

• Fast and secure payments to 140+ countries with no exchange rate markups.
• Always get the mid-market rate with transparent conversion fees starting from 0.26%.
• Send up to 1,000 payments with just one transfer using Batch Payments.
• Enjoy lower fees when sending amounts above 20,000 GBP (or equivalent in your currency).

➡️Start Paying Overseas Invoices for Less with Wise Business

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Sources:

1. Nationwide E-Invoicing Framework
2. GST InvoiceNow Requirement
3. How Singapore Drives E-Invoicing Adoption with Queen Bees
4. Send and Receive Invoices with E-Invoicing
5. E-Invoicing Gains Traction in Singapore

Sources checked on 4 October 2025.