PETALING JAYA: Business groups have welcomed the government’s latest measures to ease e-invoicing implementation, saying they would encourage voluntary compliance and help businesses manage the cost of complying with the digital tax system.
The measures, announced by Prime Minister Datuk Seri Anwar Ibrahim earlier this month, include the Special Voluntary Disclosure Programme (PKPS) for e-invoice until Dec 31, 2027, allowing taxpayers to voluntarily rectify omissions, errors or non-compliant e-invoice without penalties.
A one-year capital allowance was also given for qualifying expenditure on information and communications technology (ICT) equipment and software used to implement e-invoicing.
The announcement builds on concessions introduced in April in which businesses with annual turnover of between RM1mil and RM5mil were given a 12-month transition period until Dec 31, 2027, during which they may continue issuing consolidated e-invoices without penalties.
Federation of Malaysian Manufacturers president Jacob Lee said the measures were timely for manufacturers, many of whom were among the earliest adopters of e-invoicing and had invested heavily in software integration, staff training and internal process redesign.
“The PKPS provides businesses with an opportunity to rectify omissions or errors voluntarily without penalties.
“The one-year capital allowance will help improve cash flow and reduce part of the implementation cost,” he said in an interview.
Lee, however, said manufacturers would welcome clarification on whether companies that had invested during the earlier implementation phases would also qualify for the tax incentive so they would not be disadvantaged for complying ahead of others.
He also highlighted an issue involving the Customs forms.
“In certain transactions, the relevant K1 or K9 (required fields in the form) information is not yet available when the e-invoice must be submitted, while the Customs documentation process may require the validated e-invoice number, creating a circular sequencing problem.”
He suggested that the K1 and K9 fields should be made optional during the initial e-invoice submission, with businesses allowed to update the information later.
“The focus should be on facilitating accurate compliance rather than penalising businesses for genuine technical, sequencing or system integration difficulties,” he added.
SME Association of Malaysia president Chin Chee Seong described the latest measures as positive steps that reflected the government’s willingness to listen to their feedback.
He said the PKPS would encourage businesses to voluntarily rectify genuine mistakes, while the accelerated capital allowance would support investments in software and digital systems needed for e-invoice implementation.
“More awareness and clear communication are needed to assure businesses of PKPS’ purpose and benefits.
“Some SMEs remained concerned that participating in the PKPS could increase the likelihood of being selected for a tax audit,” he said.
While the capital allowance would help offset implementation costs, Chin said businesses would still need to bear the upfront investment and continue paying for software subscriptions, maintenance and upgrades.
Small and Medium Enterprises Association president Datuk William Ng also welcomed the measures but said businesses would appreciate greater clarity on how the PKPS fits alongside the April announcement.
“Businesses had understood the earlier measures to provide a penalty-free transition period. The latest announcement has raised questions on how the two arrangements work together,” he said.
Ng also urged the government to provide clearer guidance on the one-year capital allowance, including the qualifying expenditure and claim process, so businesses could fully benefit from the incentive.
He said targeted digitalisation grants or software vouchers would further help smaller businesses offset implementation costs, while clearer guidance on what constitutes an “honest mistake”, a standardised disclosure process and a transparent compliance audit timeline would give businesses greater certainty.
“The government’s approach during this transition phase must remain focused on education and hand-holding rather than punitive actions,” he said.
