The Inland Revenue Board (IRB) is going digital with e-invoicing and businesses should be ready when it’s going to be implemented in the next few years.
The implementation of this e-invoice will be held in stages from the end of 2023 by focusing on system development and a pilot project with selected taxpayers. Eventually, this will be extended to other businesses starting in June 2024 based on their sales threshold.
Chief Executive Officer Datuk Dr. Mohd Nizom Sairi in his speech stated that the implementation of e-invoicing is not only able to improve the quality of services offered by tax administrators but also provides many benefits to taxpayers in terms of increasing the efficiency of business operations, simplifying record keeping and reducing their tax compliance costs.
He added that the implementation of e-invoicing can also create more transparent business transactions thus helping the government overcome the problem of the shadow economy.
It was first announced during the 2023 Budget with the aim of ensuring the efficiency of national tax administration management is in line with current technological developments.
The details of the proposed implementation of this e-invoice are as follows:
- January 2024 – Pilot project for selected companies. Other companies can also volunteer.
- June 2024 – Mandatory implementation for businesses that reach a sales threshold of RM100 million per year.
- January 2025 – Mandatory implementation for businesses that reach a sales threshold of RM50 million per year.
- January 2026 – Mandatory implementation for businesses that reach a sales threshold of RM25 million per year.
- January 2027 – Mandatory implementation for all businesses.
He also mentioned that IRB will engage with relevant businesses/stakeholders in their respective industries before implementing the new e-invoicing system.
