The Government of Malaysia implement e-Invoice in stages in an effort to enhance the efficiency of Malaysia’s tax administration management. The e-Invoice will enable near real-time validation and storage of transactions, catering to Business-to-Business (B2B), Business-to-Consumer (B2C) and Business-to-Government (B2G) transactions.
Exemptions from implementing e-Invoice
Government of Malaysia has exempted taxpayers with annual turnover or revenue below RM150,000 to be exempted from the issuance of e-Invoice.
E-Invoice Implementation Timeline
E-Invoice Treatment During Interim Relaxation Period
To ensure the smooth transitioning and implementation of e-Invoice, the Government of Malaysia has, on 26 July 2024, agreed to provide taxpayers a six months interim relaxation period from the date of mandatory implementation of each implementation phase, as follows:
During the interim relaxation period, taxpayers are still required to issue the consolidated e-Invoices / consolidated self-billed e-Invoices on a monthly basis, in accordance with the timing of issuance of consolidated e-Invoice and consolidated self-billed e-Invoice. Taxpayers may not to issue individual e-Invoice or individual self-billed e-Invoice, even if the buyer (in the case of e-Invoice) / supplier (in the case of self-billed e-Invoice) has made a request for an individual e-Invoice or individual self-billed e-Invoice to be issued.
Inland Revenue Board not undertake any prosecution action under Section 120 of the Income Tax Act 1967 during the interim relaxation period
on non-compliance of the e-Invoice requirements, provided that taxpayers have issued consolidated e-Invoice and consolidated self-billed e-Invoice.