CYBERJAYA: The implementation of the e-invoice system in Malaysia has shown encouraging performance with more than 820.5 million e-invoices issued as of on Monday (Dec 22), involving the participation of more than 111,600 taxpayers nationwide.
Inland Revenue Board (LHDN) chief executive officer Datuk Dr Abu Tariq Jamaluddin said the participation not only included taxpayers from the first to third phases who implemented e-invoices mandatorily, but also involved taxpayers from the fourth phase who participated voluntarily.
"These statistics illustrate that the implementation of e-invoices is generally very well received among businesses in Malaysia. The level of compliance with mandatory implementation also recorded a very encouraging percentage.
"Phases one and two, the compliance is over 90 per cent, phase three we have not yet reached the end (December 2025) but it has also exceeded 80 per cent compliance,” he said in a press conference after the LHDN Engagement Session with the Trade Associations here on Monday (Dec 22).
The government previously introduced the implementation of e-invoices in stages to improve the efficiency of the country's tax administration management in an effort to support the growth of the digital economy.
E-invoices have also been introduced in several other countries since 2001 including Chile, Brazil, Mexico, Denmark, Italy, France and Saudi Arabia.
Commenting further, Abu Tariq said there are challenges in the implementation of e-invoices among industry players, including data inaccuracy.
"Among the main causes of the implementation The reason e-Invoices cannot be implemented smoothly is the disruption in the delivery of e-Invoices, especially when taxpayers do not obtain accurate data such as the correct TIN (tax identification number).
"This situation causes e-invoices to be rejected. Therefore, one of the efforts implemented is to enable taxpayers to check the correct TIN number through the IRB. This is very important because without such data, e-invoices will be rejected at the initial stage,” he said.
The fourth phase of e-invoices, which will start on Jan 1, involves taxpayers with annual income or sales of up to RM5mil.
On Dec 6, Prime Minister Datuk Seri Anwar Ibrahim announced the government’s move to increase the e-Invoice exemption threshold to RM1 million, (from RM500,000) starting next year as a measure to reduce the burden on small and medium enterprises. - Bernama
