KOTA KINABALU: Malaysian companies with annual earnings below RM100mil are encouraged to familiarise themselves with the electronic invoicing (einvoicing) system ahead of its official implementation date on Jan 1, 2025.
Implementation, currently in its first phase, involves companies with an annual sales threshold of RM100mil submitting their einvoices online since Aug 1.
"Although there is still time before the official implementation next year, it would be advantageous for companies earning between RM25mil and RM100mil to begin using the system now.
"They do not have to wait until Jan 1. We encourage early participation to allow businesses to become familiar with the system," said Inland Revenue Board (LHDN) chief executive officer Datuk Dr Abu Tariq Jamaluddin.
He said the einvoicing initiative is part of the government's broader effort to enhance the taxation system.
On the first day alone, a total of 766,000 einvoices were submitted to the MyInvois system, of which 18,000 submissions came from 150 companies in Sabah.
The overall number increased to two million within five days, and to date, an additional million have since been processed.
"This rapid adoption reflects the readiness and enthusiasm of our business community to use the system. The success of this launch is not just a result of technology, but a collective effort, trust, and dedication from all parties involved," he said.
Speaking at a networking session with the Sabah media on Thursday (Aug 8), Abu Tariq noted that no issues with einvoice submissions have been reported so far, adding that LHDN is prepared to assist if any problem arises.
He disclosed that for Sabah, a total of 260 from the overall 28,940 registered companies have an annual revenue of RM100mil or more.
Another 680 companies, with earnings between RM25mil and RM100mil, are slated for inclusion in Phase Two of the rollout.
The final phase, set to begin on July 1 next year, will encompass the remaining 28,000 registered companies, comprising smaller businesses and all remaining taxpayers.
"These figures demonstrate the growing acceptance and effective implementation of the einvoicing system across the country, highlighting the significant contributions of Sabah’s business community to this initiative," Abu Tariq said.
He said LHDN’s commitment to supporting each phase of the implementation ensures that every business across the country is well-prepared to succeed in this new digital landscape.
"Transition to this system may be challenging, especially for businesses with limited technological infrastructure, but LHDN is dedicated to offering hands-on support and guidance," he assured.
Abu Tariq acknowledged the initial hurdles but highlighted the long-term benefits of increased efficiency, transparency, and security.
He stressed the importance of ensuring that no business, regardless of size or resources, is left behind.
"The government is also committed to ongoing support, particularly for SMEs. By embracing and utilising the tools available, businesses can overcome the challenges of einvoicing and pave the way for future success in the digital economy.
"Our goal is not just to implement a system but to build a robust, transparent, and efficient digital economy that benefits everyone. Together, we can create a business environment that is more resilient, competitive, and prepared for the future," Abu Tariq said.
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