Malaysia: 6 Months Grace Period for E-Invoicing

Malaysian Inland Revenue Board of Malaysia (HASiL) announced that the government has granted taxpayers a six-month period from the mandatory implementation date of e-Invoices to submit consolidated e-Invoices.

During this period, the following flexibilities are provided:

1. Universal Application:

• All industries are allowed to issue consolidated e-Invoices, including self-billed e-Invoices.

2. Flexible Transaction Descriptions:

• Any transaction description can be used.

3. Buyer Requests:

• Sellers can issue consolidated e-Invoices even if buyers request individual transaction e-Invoices.

NON-PROSECUTION ASSURANCE

HASiL has assured that no prosecution actions will be taken under section 120 of the Income Tax Act 1967 for non-compliance with e-Invoice regulations during this six-month period, provided taxpayers comply with the requirements for consolidated e-Invoices as specified.

THE OBJECTIVE OF THE RELAXATION PERIOD

This relaxation period aims to give taxpayers ample time to ensure the comprehensive and effective implementation of e-Invoicing. Key areas of focus include:

• System readiness

• Smooth business operations

• Management of changes in business processes

INCENTIVE FOR EARLY COMPLIANCE

In recognition of taxpayers who successfully implement e-Invoicing within the stipulated timeline without utilizing the relaxation period, the government offers a reduction in the capital allowance claim period. This reduction is from three years to two years for the purchase of ICT equipment and computer software packages, effective from the Year of Assessment 2024 to 2025.

ADDITIONAL SUPPORT AND ENQUIRIES

For further information or assistance regarding e-Invoicing implementation, taxpayers can contact HASiL through the following channels:

• HASiL e-Invoice Help Desk: 03-8682 8000 (24-hour line)

• MyInInvoice Live Chat

• Email: myinvois@hasil.gov.my for e-Invoicing FAQs

SOURCE/ RECOMMENDED READ: 

• English Version Available to Download Here: Malaysia E-Invoicing Extension.docx

• Publication of Inland Revenue Board of Malaysia: https://www.hasil.gov.my/media/3qppnz4q/20240726-kenyataan-media-hasil-kelonggaran-untuk-mengemukakan-e-invois-yang-disatukan-dalam-tempoh-awal-pelaksanaan-e-invois.pdf