Malaysia: New transition measure for e-invoicing mandate
Six-month transition period for the mandatory electronic invoicing (e-invoicing) regime
The Inland Revenue Board of Malaysia (IRBM) on July 26, 2024, announced a six-month transition period for the mandatory electronic invoicing (e-invoicing) regime that will be introduced August 1, 2024. During this period, businesses have the option to issue monthly consolidated e-invoices for all transactions, a move intended to accommodate businesses with complex transactions and facilitate a smooth transition to e-invoicing.
The IRBM further clarified that businesses can issue consolidated e-invoices, including self-bill e-invoices, and include any transaction description in the “Product or Service Description” field. Upon a buyer's request, sellers also have the freedom to issue consolidated e-invoices without the need to issue an e-invoice for each transaction.
The IRBM will not impose penalties for non-compliance with e-invoice regulations during this period, as long as businesses adhere to the consolidated e-invoice requirements.
Finally, the IRBM will grant taxpayers who successfully implement e-invoicing within the stipulated timeline a reduction in the capital allowance claim period from three years to two for the purchase of information and communication technology (ICT). This incentive will be effective until fiscal year (FY) 2025.
For further information, contact a KPMG tax professional:
Kathya Capote Peimbert | kcapotepeimbert@kpmg.com
Ramon Frias | ramonfrias@kpmg.com
Read a July 2024 report prepared by the KPMG member firm in Malaysia