The Inland Revenue Board (IRB) of Malaysia is set to release comprehensive guidelines in July to aid companies with annual revenues exceeding RM100 million in adopting e-invoicing, a crucial step towards digital transformation. This initiative aims to streamline business processes, enhance efficiency, and reduce costs while ensuring compliance with tax reporting regulations.
Under the leadership of Datuk Dr Mohd Nizom Sairi, the CEO of the IRB, the board plans to conduct nationwide engagement sessions to facilitate a better understanding of the e-invoicing implementation process. These sessions will provide an opportunity for businesses to contribute their feedback and ensure that the e-invoicing system meets industry requirements without incurring significant expenses.
The introduction of e-invoicing holds great potential for improving business efficiency and simplifying taxpayer workflows. By automating the invoicing process, companies can save costs associated with manual record-keeping and expedite business transactions. Moreover, the system will facilitate the availability of pre-filled tax reporting information, aligning with the concept of ‘compliance-by-design.’
The initial phase of the e-invoicing implementation, scheduled to commence on June 1 next year, will focus on involving approximately 4,000 companies with revenues exceeding RM100 million. This approach ensures a gradual and well-informed transition into the new system.
The e-invoicing initiative aligns with the ongoing digital revolution and the evolving demands of modern business practices at both domestic and global levels. Mohd Nizom emphasizes the importance of continuous engagement with the industry to address any additional requirements or concerns, underscoring the IRB’s commitment to an inclusive and collaborative approach.
While industry stakeholders may still have questions regarding the e-invoicing system, the IRB remains optimistic about its positive impact, particularly for large companies. The system has already been implemented successfully in various countries worldwide, validating its potential benefits for the Malaysian business landscape.
The introduction of e-invoicing signifies a significant step towards achieving the digitization goals outlined in the Malaysian Digital Economy Blueprint (MyDigital). As part of the National e-Commerce Strategic Roadmap (NESR) 2.0, this initiative enables businesses to efficiently exchange information and conduct trade transactions on a global scale.
By embracing e-invoicing, Malaysian companies can embrace the future of digital business operations, ensuring enhanced efficiency, improved record-keeping, and seamless compliance with tax reporting requirements.
13 June 2023