E-invoicing is good for taxpayers as it simplifies the process of invoicing and record keeping. With e-invoicing, taxpayers can create and send invoices digitally, eliminating the need for physical copies.
The electronic storage of invoices and receipts also reduces the burden of manual record keeping and enables easier retrieval of records when required. The introduction of e-invoicing is a convenient and efficient tool for taxpayers to manage their taxes and record keeping.
New Straits Times reports that starting early next year, taxpayers will no longer need to keep physical copies of their invoices, vouchers, and receipts for seven years, as the Inland Revenue Board (IRB/LHDN) will introduce an “e-invoicing” system.
The LHDN’s CEO, Datuk Dr. Mohd Nizom Sairi, stated that the e-invoicing platform will allow taxpayers to store their records online. This initiative will reduce the burden of record keeping for taxpayers, as much of their information will be with the LHDN.
The tax agency hopes to implement the e-invoicing system with the support of relevant parties.
Currently, under Section 82A(1) and Section 82A(2) of the Income Tax Act 1967, taxpayers must keep sufficient records for seven years, including documents such as the EA form and medical, books, donation, and insurance receipts.
They can request these documents for audits, and failure to keep records can result in a fine of up to RM10,000 under Section 119A of the Act.
