Explanation by the Inland Revenue Board of Malaysia (LHDN) regarding the statement issued by YB Datuk Seri Ir. Dr. Wee Ka Siong, President of MCA

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Summary of the LHDN Media Statement

• Implementation Date for e-Invoicing: The mandatory implementation of e-invoicing for Micro, Small, and Medium Enterprises (MSMEs) will commence on July 1, 2025, not on August 1, 2024, as previously misconstrued. Companies with annual revenue or sales exceeding RM 100 million must adopt e-invoicing starting August 1, 2024, but they are not required to obtain e-invoices from MSMEs for expenditure claims at this stage.
• e-Invoicing Method for MSMEs: LHDN provides a free MyInvois Portal and Point of Sales (POS) system for MSMEs to facilitate e-invoicing submissions, including any amendments. Initially, MSMEs can issue a consolidated e-invoice that combines all monthly sales transactions and submit it to LHDN within the first seven days of the following month. MSMEs only need to fill in six out of 55 data fields to complete an e-invoice, with the rest being pre-filled automatically.
• Awareness and Education Programs: LHDN will actively conduct awareness and education programs nationwide within a year before the full implementation of e-invoicing. They will also provide platforms, tutorials, and user guides to assist MSMEs in using the MyInvois Portal.
• Penalties for Non-compliance: Failure to issue e-invoices is an offense under the Income Tax Act (ITA) 1967, with penalties ranging from RM 200 to RM 20,000, depending on the facts of each case. However, LHDN will consider appropriate leniency for MSMEs when full implementation begins.
• Data Security and Privacy: LHDN emphasizes the confidentiality, privacy, and protection of taxpayer data, complying with international standards such as ISO/IEC 27001 and ISO 223001. Regular Security Posture Assessments (SPA) are conducted with appointed third parties, in collaboration with the National Cyber Security Agency (NACSA) and the National Security Council (MKN), to ensure the MyInvois system’s security and address hacking threats.
• e-Invoicing and Sales and Service Tax (SST): The e-invoicing implementation considers SST requirements, incorporating related information as e-invoice data fields. This should not lead to increased product prices or business costs for MSMEs.

For further inquiries regarding e-invoicing implementation, contact LHDN via email at myinvois@hasil.gov.my or for Sandbox System MyInvois and Software Development Kit (SDK) queries, call 03-8682 8000 or email sdkmyinvois@hasil.gov.my.