KOTA KINABALU: Malaysian companies with annual earnings below RM100mil are encouraged to start familiarising themselves with the electronic invoicing (e-invoicing) system ahead of its official implementation on Jan 1, 2025.

The system, to be implemented in three stages, was rolled out on Aug 1 with the first phase requiring companies with an annual sales threshold of RM100mil to submit their e-invoices online.

“Although there is still time (before the second phase next year), it will be advantageous for companies earning between RM25mil and RM100mil to begin using the system now.

“They do not have to wait until Jan 1. We encourage early participation to allow businesses to become familiar with the system,” said Inland Revenue Board (LHDN) chief executive officer Datuk Dr Abu Tariq Jamaluddin.

He reiterated that the e-invoicing initiative was part of the government’s broader efforts to enhance the taxation system.

On the first day alone, 766,000 e-invoices were submitted to the MyInvois system, of which 18,000 came from 150 companies in Sabah, he revealed.

The overall number increased to two million within five days, and an additional million have since been processed.

“This rapid adoption reflects the readiness and enthusiasm of our business community to use the system. The success of this launch is not just a result of technology, but a collective effort with the trust and dedication of all parties involved,” he added.

Speaking at a networking session with the Sabah media on Thursday, Abu Tariq noted that no issues related to e-invoice submissions had been reported so far, adding that LHDN was prepared to assist should any problems arise.

He disclosed that for Sabah, 260 out of the 8,940 registered companies had an annual revenue of RM100mil or more.

Another 680 companies, with earnings between RM25mil and RM100mil, are slated for inclusion in Phase Two of the rollout.

The final phase, set to begin on July 1 next year, will encompass the remaining 28,000 registered companies that comprise smaller businesses and all remaining taxpayers.

“These figures demonstrate the growing acceptance and effective implementation of the e-invoicing system across the country, highlighting the significant contributions of Sabah’s business community to this initiative,” Abu Tariq said.

He said LHDN’s commitment to supporting each phase of the implementation ensured that every business across the country would be well-prepared to succeed in the new digital landscape.

“Transitioning to this system may be challenging, especially for businesses with limited technological infrastructure, but LHDN is dedicated to offering hands- on support and guidance,” he assured business operators.

Abu Tariq also stressed the importance of ensuring that no businesses, regardless of size or resources, were left behind.

“The government is also committed to ongoing support, particularly for small and medium- sized enterprises (SMEs). By embracing and utilising the tools available, businesses can overcome the challenges of e-invoicing and pave the way for future success in the digital economy.

“Our goal is not just to implement a system but also to build a robust, transparent and efficient digital economy that benefits everyone,” he added.

https://www.thestar.com.my/news/nation/2024/08/10/start-using-e-invoicing