PUTRAJAYA: The implementation of e-invoicing has strengthened tax compliance, with 52,540 taxpayers coming forward to declare RM4.07bil in income, according to the Inland Revenue Board of Malaysia (LHDN).
In a statement on Saturday (June 20), the LHDN said since the system was introduced on Aug 1, 2024, more than 230,000 taxpayers have adopted e-invoicing, resulting in the issuance of 1.505 billion e-Invoices.
"This development reflects taxpayers’ support and readiness to embrace digitalisation in business operations,” it said.
The LHDN also reminded taxpayers that all transactions involving the sale of goods or provision of services exceeding RM10,000 must be supported by an e-invoice from Jan 1, 2026.
To facilitate the process, buyers are required to provide their identification number or Tax Identification Number (TIN) to sellers for the accurate issuance of e-invoices.
The LHDN said it has developed an analytics model to detect anomalies, suspicious transactions and unusual behaviour patterns for enforcement purposes.
The initiative has enabled the agency to carry out more effective risk assessments, improve voluntary tax compliance and contribute to higher revenue collection.
Its analysis identified taxpayers with active financial transactions that did not match existing tax records, including purchases exceeding RM100,000, acquisitions of vehicles and assets, as well as active online transactions without corresponding income declarations.
The LHDN said it will continue to adopt a data-driven compliance approach based on e-Invoice information while encouraging taxpayers to voluntarily correct and update their tax records before further action is taken.
"Through this approach, 52,540 taxpayers have submitted Income Tax Return Forms (BNCP) for previous years of assessment, declaring total income of RM4.07bil and tax payable amounting to RM1.009bil,” it said.
At the same time, the LHDN’s monitoring found that some taxpayers are still failing to comply with e-invoicing requirements.
Common errors include issuing e-invoices for only some transactions while omitting others, submitting consolidated e-Invoices after the permitted period, and failing to issue e-Invoices for transactions exceeding RM10,000.
The LHDN advised taxpayers to ensure full compliance with e-invoicing requirements and urged those who have yet to issue e-Invoices for past transactions to take corrective action immediately.
"Enforcement and legal action will be taken to ensure a high level of compliance and safeguard fairness within the national tax system,” it said. - Bernama
