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The IRBM has updated the E-invoice guidelines



The Inland Revenue Board of Malaysia (IRBM) has released updated versions of several e-Invoice documents:

  • e-Invoice guideline version 3.2, which replaces version 3.1 dated 19 July 2024

  • e-Invoice specific guideline version 3.0, which replaces version 2.2 dated 28 June 2024

  • General FAQs have also been updated.

 

Key updates include:

  • e-Invoice guideline version 3.2:

    • The exemption list for e-Invoices has been expanded to include taxpayers with an annual turnover of less than RM150,000.


  • e-Invoice specific guideline version 3.0:

    • If the buyer does not require an e-Invoice, the timeline for issuing a consolidated e-Invoice aligns with that for a supplier. This means the consolidated self-billed e-Invoice must be submitted to the IRBM on a monthly basis, within 7 calendar days after the end of the month.

    • When the buyer assumes the role of the supplier, specific details must be included in the consolidated self-billed e-Invoice.

    • Guidance is provided for issuing a consolidated e-Invoice during the 6 month grace period following the mandatory implementation of e Invoicing.


  • FAQs updated on 19 July 2024:

    • The business registration number validation requirement has been temporarily disabled as of 19 July 2024.

    • If the buyer does not request an e-Invoice for a transaction, the supplier is permitted to issue a consolidated e-Invoice for that transaction.

    • Guidance is offered on how to correct an e-Invoice if errors are discovered within 72 hours or after validation.

    • The threshold for micro, small, and medium enterprises to issue receipts for all transactions has been raised from RM100,000 to RM150,000.

 

 

Comments from StanleyCo:

The increase in the e-invoicing threshold from RM100,000 to RM150,000 is a much-needed relief for many micro, small, and medium enterprises. By recognizing the potential burden on these businesses, the government has taken a proactive step to ease compliance requirements, allowing them to focus on growth rather than getting caught up in administrative tasks.


For larger companies required to begin e-invoicing on 1 August 2024, the Inland Revenue Board of Malaysia (IRBM) has granted a 6-month grace period to issue consolidated e-Invoices. During this period, the IRBM will not pursue prosecution under Section 120 of the Income Tax Act 1967 for non-compliance, as long as the necessary consolidated e-Invoices are issued.

Additionally, throughout the grace period, restrictions have been relaxed, allowing all sectors and industries, including those using self-billed e-Invoices, to issue consolidated e-Invoices without the pressure of immediate compliance.

To further incentivize early compliance, taxpayers who fully implement e-Invoicing within the designated timeline, without using the grace period, will be rewarded. The claim period for capital allowances on ICT equipment and computer software packages will be reduced from 3 years to 2 years, specifically for the 2024 and 2025 assessment years. This presents a valuable opportunity for businesses to expedite their capital allowance claims while ensuring compliance.

 

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