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Take 5 - e-Invoice Guideline: Navigating the future of tax digitalization
Following the government’s announcement of the implementation of electronic invoicing next year, the Inland Revenue Board of Malaysia (“IRBM”) issued the e-Invoice Guideline (Version 1.0) (“the Guideline”) on 21 July 2023.
The Guideline explains the processes and procedures and provides a structured approach for taxpayers to implement e-Invoicing, from generation and transmission, to the storing of e-Invoices in order to meet compliance obligations.
In particular, the Guideline offers:
- Practical examples of situations which taxpayers may encounter and indicates how e-Invoicing requirements are applied under various business environments;
- Clarification in assessing taxpayer implementation readiness and compliance;
- Responses to commonly-asked questions and areas of concern; and
- Clarity on the implementation timeline. Taxpayers with annual turnover of over RM100 million must comply with e-Invoicing by 1 June 2024, with all taxpayers expected to comply by 1 January 2027.
The comprehensive e-Invoice Guideline issued by the IRBM will facilitate the digital transformation of Malaysia’s e-infrastructure and align our progress with international best practices. The targeted implementation of e-Invoicing in ten months’ time means businesses need to prioritize all required system changes, including processes and talent recruitment actions.
In navigating the future of tax digitalization, businesses should pivot their digital transformation with e-Invoicing and focus on a people-centric model, serving both their customers and employees.