THE Inland Revenue Board (LHDN) is targeting 4,000 businesses for the first stage of “e-invoice” implementation slated to commence in June 2024.
Tabled during the previous Budget 2023, the “e-invoice” is an aspiration toward a digital Malaysia, strengthening the digital tax service administration and collection.
LHDN CEO Datuk Mohd Nizom Sairi said “e-invoice” will ensure a seamless business infrastructure, and increase compliance and transparency in taxing and business productivity.
The implementation will be done in stages from June 2024, with the first being made mandatory for businesses with a yearly turnover of over RM100 million.
Subsequently, 2025 will be mandatory for businesses with turnover of more than RM50 million; 2026 for businesses with over RM25 million turnover and 2027 is targeted to be mandatory for all businesses.
“However, we encourage all businesses to participate voluntarily for the pilot project which will take off in March next year,” Mohd Nizom said during a media engagement today.
He added that implementation for business-to-customer (B2C) will be the last phase once implementation for business-to-business (B2B) is firm.
As of now, “e-invoice” is still in the stage of providing user requirements and gathering stakeholders’ perspectives.
With “e-invoice”, Malaysian taxpayers are no longer required to keep hard copies of their invoices, vouchers and receipts for seven years and can access them via mobile in real time.
Mohd Nizom added that the “e-invoice” is also a solution to prevent tax leakage especially for the shadow economy and illegal businesses which do not record their revenue.
“There are many categories in the shadow economy, including illegal businesses. But we start with the unrecorded legal business first, we try to limit them so everything is in the tax system net,” he said.
LHDN will oversee this implementation with the Malaysian Digital Economy Corp (MDEC) to ensure an effective rollout.
In terms of data security, LHDN is fully responsible in ensuring that data is protected through cloud data services.
By NURUL SUHAIDI / Pic by HUSSEIN SHAHARUDDIN. 22 May 2023.
Source: The Malaysian Reserve. https://themalaysianreserve.com/2023/05/22/lhdn-to-launch-e-invoicing-system-next-year/. 27 May 2023.
Scroll To Top