diff --git a/src/components/MoneyRequestConfirmationList.tsx b/src/components/MoneyRequestConfirmationList.tsx
index ebec9b71fc04..0d47ad461173 100755
--- a/src/components/MoneyRequestConfirmationList.tsx
+++ b/src/components/MoneyRequestConfirmationList.tsx
@@ -344,7 +344,7 @@ function MoneyRequestConfirmationList({
     }, [isEditingSplitBill, hasSmartScanFailed, transaction, didConfirmSplit]);
 
     const isMerchantEmpty = useMemo(() => !iouMerchant || TransactionUtils.isMerchantMissing(transaction), [transaction, iouMerchant]);
-    const isMerchantRequired = isPolicyExpenseChat && (!isScanRequest || isEditingSplitBill) && shouldShowMerchant;
+    const isMerchantRequired = (isPolicyExpenseChat || isTypeInvoice) && (!isScanRequest || isEditingSplitBill) && shouldShowMerchant;
     const shouldDisplayMerchantError = isMerchantRequired && (shouldDisplayFieldError || formError === 'iou.error.invalidMerchant') && isMerchantEmpty;
 
     const isCategoryRequired = !!policy?.requiresCategory;
diff --git a/src/pages/iou/request/step/IOURequestStepMerchant.tsx b/src/pages/iou/request/step/IOURequestStepMerchant.tsx
index fc7d39b49089..99606eb50e5c 100644
--- a/src/pages/iou/request/step/IOURequestStepMerchant.tsx
+++ b/src/pages/iou/request/step/IOURequestStepMerchant.tsx
@@ -60,10 +60,11 @@ function IOURequestStepMerchant({
 
     // In the split flow, when editing we use SPLIT_TRANSACTION_DRAFT to save draft value
     const isEditingSplitBill = iouType === CONST.IOU.TYPE.SPLIT && isEditing;
+    const isTypeInvoice = iouType === CONST.IOU.TYPE.INVOICE;
     const merchant = ReportUtils.getTransactionDetails(isEditingSplitBill && !isEmptyObject(splitDraftTransaction) ? splitDraftTransaction : transaction)?.merchant;
     const isEmptyMerchant = merchant === '' || merchant === CONST.TRANSACTION.PARTIAL_TRANSACTION_MERCHANT;
 
-    const isMerchantRequired = ReportUtils.isReportInGroupPolicy(report) || transaction?.participants?.some((participant) => Boolean(participant.isPolicyExpenseChat));
+    const isMerchantRequired = ReportUtils.isReportInGroupPolicy(report) || isTypeInvoice || transaction?.participants?.some((participant) => Boolean(participant.isPolicyExpenseChat));
     const navigateBack = () => {
         Navigation.goBack(backTo);
     };