Peppol 5-corner model and IRAS tax reporting
How the Peppol four-corner model is extended so that invoice data also reaches IRAS, and what that means for a seller.
In the standard Peppol model there are four corners: the seller, the seller's Access Point, the buyer's Access Point and the buyer. In Singapore's GST InvoiceNow requirement, IRAS is added as a fifth party that receives the invoice data it needs for tax administration, sent by the seller's Access Point. This is often called the five-corner model. The invoice still goes to the buyer over the Peppol network, and the data for IRAS is sent alongside it. The exact data set and technical specifications are published by IRAS and IMDA, so use those sources for implementation details.
- Corners 1 to 4: seller, seller's Access Point, buyer's Access Point, buyer.
- Corner 5: IRAS, receiving invoice data through the Access Point.
- Scope: GST-registered businesses that fall under the IRAS phases.
- Your invoicing tool needs an Access Point or InvoiceNow-Ready solution to take part.
How it works
The seller prepares the invoice in a system that can produce the Peppol format, and passes it to an Access Point.
The Access Point delivers the invoice to the buyer's Access Point, which passes it to the buyer's system.
For businesses in scope of the IRAS requirement, the Access Point also transmits the required invoice data to IRAS.
Credit notes and adjustments are part of the invoice data covered by the requirement, according to IRAS.
Cross-border invoices to buyers abroad can also travel over Peppol if both sides are on the network, but the IRAS reporting concerns Singapore GST-registered sellers in scope.
Legal framework
- IRAS e-Tax Guide: Adopting GST InvoiceNow Requirement.
- IRAS: GST InvoiceNow Requirement FAQs.
- IMDA: InvoiceNow.
- Goods and Services Tax Act 1993.
Frequently asked questions
Does InvoiceNow replace the GST F5 return?
No. The requirement concerns sending invoice data to IRAS. The GST return still has to be filed as IRAS requires. Check iras.gov.sg for any change to filing.
Are sales to consumers also covered?
The Peppol network is used for business-to-business invoicing. For details on other invoice types, read the IRAS FAQs on the GST InvoiceNow requirement.
Does my buyer need to be on InvoiceNow?
For Peppol delivery, the buyer needs to be reachable on the network. Ask your Access Point or InvoiceNow-Ready solution provider how they handle buyers who are not.
Does 4invoices take part in the five-corner flow?
No. 4invoices is not a Peppol Access Point, does not send data to IRAS and does not issue e-invoices. It creates invoices with GST per line, in any currency, and lets you download the PDF.