Malaysia proposes new timeline for e-invoicing implementation
The Malaysian Government has proposed a new timeline for the mandatory e-invoicing implementation in its 2024 Budget, after taking into consideration the feedback of taxpayers.
Based on the new plan, e-invoicing will be mandatory for taxpayers with annual income or sales exceeding RM100 million, starting from August 1, 2024, instead of June 1, 2024. E-invoicing for taxpayers in other income categories will be enforced in phases, with a comprehensive implementation target of July 1, 2025.
Additionally, the Government proposed to expand the usage of Tax Identification Numbers (TIN) to strengthen the e-invoicing implementation, potentially broadening the taxpayer base and consequently reducing instances of fraud.
Invoicing requirements for Malaysian businesses will change significantly due to the upcoming e-invoicing mandate. Businesses should proactively prepare for the upcoming e-invoicing mandate and assess their current IT systems, ERP systems, and tax compliance processes to ensure they are aligned with the new requirements. The Budget proposal offers more time for taxpayers to prepare; however, in reality, the postponement is not significant.
Check out our previous blogs to learn more about the upcoming e-invoicing mandate in Malaysia.