The Inland Revenue Board of Malaysia (IRBM) released a press note and updated documentation introducing a set of measures for the flexibilization of the upcoming e-invoicing obligation, as listed below.
Please note, however, that there has been no postponement of the mandatory go-live date, which remains as 1 August 2024.
Issuance of consolidated e-invoice for all transactions: during the first six (6) months from the mandatory go-live date, the IRBM will allow all activities/industries to issue a consolidated e-invoice for all transactions. This includes transactions where self-billing e-invoices are required and those for which the buyer has requested an e-invoice.
Grace Period: during the six-month period, no penalties will be applied to taxpayers, as long as they ensure compliance with the issuance of the consolidated e-Invoice, as per the tax authority’s guidelines. The six-month grace period will be applied to each go-live date, as follows:
- Taxpayers with an annual turnover or revenue of more than RM100 million: relaxation period will be from 1 Aug 2024 until 31 January 2025.
- Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM100 million: relaxation period will be from 1 January 2025 to 30 June 2025.
- All other taxpayers: relaxation period will be from 1July 2025 to 31 December 2025.
Incentive for Compliant Taxpayers: taxpayers who comply with the e-invoicing mandate within the mandatory deadline of 1 August 2024, without recurring to the consolidated e-invoice flexibilization measure above, will receive an expedition of their capital allowance claim, to acquire equipment and software. They will be able claim it in two years, instead of three, effective from Year of Assessment 2024 to 2025.
