tax invoice cloud

 

GST-registered traders are required to issue tax invoices for standard-rated supplies with total amount payable (including GST) exceeding S$1,0001. A tax invoice is the main document that GST-registered entities relies on to support their input tax claim. Generally, a tax invoice should be issued within 30 days from the time of supply.

Here are some of the information required on a Singapore-dollar denominated tax invoice:

InvoiceInfo

 

Common errors when preparing tax invoices2

  • Supplier’s name, address and GST registration number are not shown
  • The supplier’s GST registration number is invalid and not found in the Register of GST-registered Businesses
  • The words “Tax Invoice” are not shown
  • For amounts over S$1,000:
    - Customer’s name is not indicated on the tax invoice
    - Tax invoice does not show GST amount separately

 

Cloud accounting software can help reduce errors and improve compliance

These errors can be easily avoided by using Xero, an IRAS-approved accounting software.

Xero’s invoicing tool allows users to set up invoice templates which conform to IRAS requirements. This greatly reduces human and clerical errors when preparing tax invoices.

Built-in features that minimise errors include:

  • Pre-set invoice header that shows 'Tax Invoice'
  • Company's name, address and GST registration number are extracted from the main setting and automatically shown on the invoice
  • Invoice date is a mandatory field before system allows the invoice to be issued
  • Invoice numbers are generated by Xero and every invoice is assigned an invoice number
  • Customer's name and address are managed by Xero, allowing businesses to update their customer information in a timely manner
  • Description of goods and services can be pre-set as a sales item in Xero, allowing for consistent description for invoices
  • Total amount payable excluding GST and total amount payable including GST are automatically calculated by Xero
  • System automatically uses default tax rates that are prescribed by IRAS
  • Generation of tax reports and listings to facilitate GST submission to IRAS

 

An example of an invoice generated using Xero:

InvoiceExample

 

Contact us to discover how you can improve your GST compliance and enjoy the benefits of cloud accounting.

 


1https://www.iras.gov.sg/IRASHome/GST/GST-registered-businesses/Learning-the-basics/How-to-implement-GST/Displaying-and-Quoting-Prices/Invoicing-Customers/
2https://www.iras.gov.sg/irashome/GST/GST-registered-businesses/Working-out-your-taxes/Can-I-claim-GST/Conditions-for-Claiming-Input-Tax/#title4