E-Invoicing System Eases Transition For Small Businesses, Says Expert

KUALA LUMPUR, Jan 23 (Bernama) -- Malaysia's e-invoicing system offers a streamlined adoption process for small businesses, according to Chartered Tax Institute of Malaysia council member Harvindar Singh.

He said that the six-month interim relaxation period for the e-invoicing mandate, which came into effect on August 1, 2024, has provided businesses with additional time to prepare for full implementation.

"Every transaction must be accompanied by an e-invoice. You can continue with business as usual, but by the end of the month, you need to submit a consolidated invoice within seven days.

“This approach simplifies the process significantly. It is not a postponement but rather a relaxation to ease the transition," Harvindar said.

He shared these insights as a guest on Bernama TV's The Nation programme during a discussion on "Major Changes in Taxation for 2025" earlier today.

The e-invoicing system is a digital platform introduced by the government to streamline and enhance the invoicing process for businesses.

It mandates that businesses generate and submit invoices electronically, ensuring compliance with tax regulations and improving efficiency in tax reporting and collections.

Harvindar acknowledged that there are challenges and initial issues to address but expressed optimism about the progress being made.

"There are many apps currently being developed, and I understand the concerns, particularly among smaller businesses that may find the process of becoming e-invoice ready quite daunting.

"However, I believe that as time passes and July 1 approaches, businesses will come to realise that it is manageable,” he said.

Harvindar emphasised that the key is ensuring the right information reaches them.

-- BERNAMA