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KUCHING, June 26: Inland Revenue Board of Malaysia (LHDNM) is expected to issue guidelines for the implementation of electronic invoicing (e-invoicing) systems for reference and preparation by taxpayers, by the end of July 2023.
Earlier, LHDNM has announced that the e-invoicing system will be implemented in stages starting from next year to increase efficiency in tax collection and reduce the risk of tax evasion.
LHDNM deputy chief executive officer (management) Hisham Rusli stated that the federal government, through the presentation of the 2023 Budget, has introduced the implementation of e-invoicing in stages beginning at the end of 2023 with system development and pilot projects with selected taxpayers to ensure the efficiency of the national tax administration.
“Mandatory implementation of the e-invoicing system for businesses based on sales threshold value will begin in stages in June 2024,” Hisham disclosed during the engagement session with taxation practitioners and professional bodies regarding the implementation of e-invoices today at a hotel in Kuching.
According to him, starting June 2024, the e-invoicing system will be mandatory for companies with an annual sales turnover of RM100 million and above and voluntary for all other businesses.
Subsequently, from January 2025, it will be mandatory for companies with an annual sales turnover of RM50 million and above.
From January 2026, it will be mandatory for companies with an annual sales turnover of RM25 million and above.
Finally, from January 2027, it will be mandatory for all companies to adopt the e-invoicing system.
“As the implementing agency, LHDNM will provide guidelines regarding the implementation of e-invoices for the purpose of reference and preparation by taxpayers, expected to be issued at the end of July 2023.
“LHDNM is also ready to assist with any queries related to the implementation of e-invoices by taxpayers,” Hisham said.
He went on to say that the implementation of e-invoicing will increase business efficiency through cost savings as well as simplify the taxpayer’s work process with the availability of pre-filled tax reporting information in line with compliance-by-design.
“The implementation of e-invoicing will also streamline and strengthen the country’s tax system, increase tax transparency and more accurate compliance risk assessment while also increase the level of compliance among voluntary taxpayers,” he added. — DayakDaily
