KUALA LUMPUR, Feb 11 — The implementation of the e-invoice system in Malaysia has recorded over one billion transactions to date, with participation from over 200,000 taxpayers nationwide, according to the Inland Revenue Board of Malaysia (IRB).
IRB chief executive officer Datuk Abu Tariq Jamaluddin said that of the total, more than 135,000 taxpayers have started submitting e-invoices, including phase four taxpayers and new taxpayers.
“Overall, the level of compliance and acceptance regarding the implementation of the e-invoice system is very good.
“More than 90 per cent of companies or businesses from phases one to three have already implemented e-invoices according to the prescribed timeline,” he said when appearing as a guest on Bernama TV’s Ruang Bicara programme, titled “E-Invoices: Myths, Reality and Opportunities for SMEs”.
He said this proved that e-invoicing could be implemented, despite challenges in the early stages, particularly in developing or amending business systems and in adapting business policies and operations.
Abu Tariq said the IRB will continue to intensify its review and engagement activities with the remaining companies or businesses that have not yet implemented the e-invoice system, in line with the set timeline.
“This includes issuing notification letters, gentle reminders and visits to the companies or businesses’ premises to provide appropriate assistance and advisory services,” he said.
Abu Tariq said that e-invoice is not a new tax mechanism or implementation, as is often misinterpreted.
“How can we say e-invoice is a new tax when the existing sales and service tax information is also detailed in e-invoice?
“E-invoice is simply the process of (transforming) business documentation from manual to digital,” he said.
He also said that the e-invoice implementation not only provides focus and benefits large-scale companies and businesses, but also benefits the entire Malaysian business ecosystem, including micro, small, and medium enterprises (MSMEs).
“The implementation will help empower SMEs to remain competitive and professional, and fulfil standards in running a structured and organised business.
“It also digitalises business operations among MSMEs, strengthens digital service infrastructure and increases the level of trust and transparency in business operations,” he said.
He said e-invoices replace the traditional, manual business method previously practised.
“Businesses no longer need to keep physical business records, receipts that are easily lost, manual record books, or invoice files that take up storage space, are easily damaged, incorrectly recorded, with many other risks that negatively impact the business,” said Abu Tariq.
As for the claim that the e-invoice system causes businesses to pay higher taxes, he dismissed this as another myth.
He said businesses with annual income or sales of RM1 million or less are temporarily exempt from the mandatory implementation of e-invoicing, but are encouraged to implement it voluntarily for the benefits of their business operations.
“This adds value to businesses and helps them prepare for the digital economy,” he said.
Abu Tariq said that to facilitate the implementation of the e-invoice system, the IRB has provided platforms that can be accessed and used free of charge, namely MyInvois Portal, MyInvois Mobile App and MyInvois e-Pos.
He said that, apart from providing free platforms, the IRB also offers various assistance channels and support services to ensure the transition and implementation of e-invoicing runs smoothly.
“This includes the e-invoice guideline, frequently asked questions and various reference materials on the implementation of e-invoice, which can be obtained on the e-invoice micro site (http://www.hasil.gov.my/e-invois).
“In addition, the IRB also actively organises free briefings and webinars nationwide,” he said. — Bernama
