Date
May 25, 2024
Source
The Star Newsaoer
Source: The Star Newspaper dated 25 May 2024
Full Text
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Here's a summary of the key points from the article:
- Mandatory electronic invoicing (e-invoicing) rule in Malaysia:
- The one-year countdown begins on July 1, 2025, when e-invoicing becomes mandatory for all businesses in the country.
- The Inland Revenue Board (LHDN) will be launching a free e-invoicing software on June 1 to help businesses, both big and small, transition to the new system.
- Phased implementation of e-invoicing:
- Phase 1 (Aug 1, 2023): Companies with annual earnings of RM100 million and above.
- Phase 2 (Jan 1, 2024): Companies with annual earnings between RM25 million and RM100 million.
- Final Phase (July 1, 2024): All businesses or enterprises offering sales or services.
- Benefits and concerns:
- E-invoicing will help stem billions in losses due to the shadow economy and align with Malaysia's digitization goals.
- Concerns from small and medium enterprises (SMEs) and hawkers include the fine for non-compliance and the expected rise in operating costs.
- LHDN's responses:
- Companies earning less than RM100 million annually do not need to use e-invoicing in the initial stage.
- Only 6 out of 55 data entry points need to be filled for the e-invoice.
- Consolidated monthly invoices will make compliance easier for micro-businesses.
- LHDN is in talks with online platform providers to capture sales transactions through their systems.
- Encouragement for SMEs, petty traders, and hawkers:
- LHDN encourages them to start using the free e-invoicing software to familiarize themselves with the system and get their books in order by July 1, 2024.