PETALING JAYA: Despite companies grappling with the mandatory adoption of e-invoicing, the Inland Revenue Board (LHDN) is not planning to extend the Feb 1 soft-landing deadline.
Companies under the first phase of the e-invoicing roll-out will be subject to a fine of between RM200 and RM20,000 or imprisonment for up to six months for each instance of non-compliance.
However, in light of some companies facing difficulties, LHDN will take a case-by-case approach to deal with companies that fail to fully adopt e-invoicing from Feb 1.
“Currently, there are no plans to extend the Feb 1 deadline.
“However, LHDN acknowledges that some companies may encounter legitimate challenges in meeting the requirements.
“We are prepared to evaluate each situation on a case-by-case basis to facilitate a smooth transition to e-invoicing for all stakeholders involved.
“Businesses are encouraged to contact (LHDN) for assistance and to utilise the resources provided,” LHDN said in a statement in response to inquiries by The Star with regard to the Feb 1 deadline.
Under the first phase on e-invoicing, companies with an annual turnover of RM100mil and above are required to implement the new filing regime from Aug 1 last year.
However, a six-month soft landing period was allowed for them to adjust and fully adopt the new system by Feb 1 this year.
These companies were allowed to file monthly to consolidate their e-invoicing instead of daily transactions, including using the current accounting format to submit online filings.
Meanwhile, based on LHDN’s latest data, more than 5,300 companies under the first phase have been actively submitting e-invoices, an indication of a positive level of preparedness.
“In addition, as of Jan 1 this year, about 40% of taxpayers under Phase 2 and Phase 3 have implemented e-invoice on a voluntary basis,” LHDN added.
As of the latest data, a total of 133 million e-invoices have been submitted by taxpayers from all three phases, LHDN said.
Under Phase 2, companies with an annual turnover of between RM25mil and RM100mil are required to adopt e-invoicing by Jan 1.E-invoicing is to be fully implemented by all businesses by July 1 this year with the exception of micro, small and medium industries that have annual earnings of less than a RM150,000.
