Malaysian Budget 2024 Announces LHDN e-Invoice Implementation Updates
A revision to the new e-Invoice implementation timeline for businesses has been announced during the Malaysian Budget 2024, with an update of the postponement of the start date and a shorter target timeframe for full implementation for every taxpayer.
As the previous target implementation date was on 1st June, the latest updates on the Malaysian 2024 Budget state that starting August 1, 2024, the first group of taxpayers with annual income or sales exceeding RM100 million will be required to implement e-invoicing and the initiative will be implemented gradually for taxpayers in other income categories, with an earlier full implementation target of July 1, 2025.The updated detailed timeline is as follows:
- 1 August 2024: Implement on taxpayers with an annual turnover of RM100 million and above.
- 1 January 2025: Implementation towards taxpayers with an annual turnover of RM25 million to RM100 million.
- 1 July 2025: To achieve full and comprehensive implementation on other remaining taxpayers.
The e-Invoice, introduced by the Inland Revenue Board of Malaysia (IRB) or LHDN Malaysia, encourages businesses in the nation to adopt digitalization and transact efficiently and accurately. Besides, another purpose of the initiative of implementing e-Invoice by the government is that it enables a better administration of taxes by the government and enhances tax compliance, as the proposal of utilizing Tax Identification Number (TIN) and e-Invoicing can also reduce fraud, shadow economy and revenue leakage in the nation. It also serves as the approach to substitute GST for the moment as a method of efficient administration, as shared by Datuk Seri Ahmad Maslan, Deputy Minister of Finance Malaysia.
With the earlier full-scale implementation of e-Invoicing, businesses or taxpayers are urged to prepare early to ensure full compliance with the requirements and to get through the acclimation period smoothly and, at the same time, transact easily among suppliers and buyers.
Find out how e-Invoice works here. AutoCount solution can assist by integrating LHDN e-Invoice into the accounting system via API and automating the process once the kit is made available. Follow us on Facebook to stay updated, or contact us for a free consultation.
Reference: Saidi (2023) Tin, e-invoice to address revenue leakage, reduce the size of Shadow Economy – Ahmad Maslan, Kementerian Kewangan Malaysia. https://www.mof.gov.my/portal/en/news/press-citations/tin-e-invoice-to-address-revenue-leakage-reduce-the-size-of-shadow-economy-ahmad-maslan (Accessed: 02 November 2023).