As we move into October, the third month since the mandatory e-Invoicing implementation took effect on 1 August 2024, it’s crucial for businesses to assess where they stand. Many are still navigating a critical phase of adapting to the new system—dealing with software integration challenges, training staff, and adjusting workflows to align with the e-Invoicing requirements.

The question remains: are businesses still facing significant obstacles in this transition? From software compatibility issues to managing large volumes of transactions, ensuring accuracy in every e-Invoice while maintaining day-to-day operations has proven to be a real challenge.

Act Now: Leverage the Temporary Flexibility from the Inland Revenue Board of Malaysia (IRBM)

Businesses must act quickly to take full advantage of the IRBM’s temporary relief measures during this crucial phase. The IRBM is offering a 6-month relaxation period to help companies transition smoothly into full e-Invoicing compliance:

Implementation Original Timeline:

– Sales Revenue > RM 100 mil: Implementation by 1st August 2024

– Sales Revenue > RM 25 mil up to RM 100 mil: Implementation by 1st January 2025

– All Businesses: Implementation by 1st July 2025

6-Month Relaxation Period Breakdown:

– Sales Revenue > RM 100 mil: August 2024 to January 2025 

– Sales Revenue > RM 25 mil up to RM 100 mil: January 2025 to June 2025 

– All Businesses: July 2025 to December 2025 

During this grace period, businesses are allowed to issue consolidated e-Invoices for all transaction types, including self-billed e-Invoices. This flexibility allows companies to group transactions and submit one consolidated e-Invoice instead of individual invoices for each transaction.

Key Considerations:

1. Temporary Relief, Not a Delay

This is a temporary measure. The e-Invoicing implementation timeline remains unchanged. Consolidated e-Invoices must be submitted to the IRBM within 7 days of the end of each month. Failure to do so could result in penalties.

2. Customer Requests for e-Invoices

During the relaxation period, businesses aren’t required to issue individual e-Invoices per transaction, even if requested by a customer. Customers should continue receiving regular invoices, bills, or receipts as usual, while businesses consolidate the transactions monthly.

3. Consolidated Applicable to All Industries

All sectors, including automotive, construction, and aviation, are permitted to issue consolidated e-Invoices. This measure also applies to self-billed e-Invoices in cases like the importation of goods and services, providing crucial relief across industries.

4. Flexibility in Product/Service Descriptions

The IRBM allows businesses greater flexibility in filling out product or service descriptions, without requiring the receipt, statement, or bill reference numbers during this period.

5. Penalties for Non-Compliance

As long as businesses meet the consolidated e-Invoicing requirements, no penalties under Section 120 of the Income Tax Act 1967 will be imposed during the relaxation period. However, businesses must remain diligent to avoid costly non-compliance once this window closes.

Take Action Today

Businesses must seize this opportunity and adopt the right software solutions to ensure full compliance with e-Invoicing regulations. Staying proactive, maintaining detailed records, and submitting consolidated e-Invoices in a timely manner are critical to navigating this transition smoothly. Now is the time to act—ensure your business is ready for the future of e-Invoicing and avoid unnecessary risks!s. Contact us now to learn how we can support your business in embracing this powerful technology.