| Update: | Compliance Alert - 6-month grace period within mandatory e-invoicing |
| Date: | 2024-07-26 |
On 26 July 2024, the Inland Revenue Board of Malaysia (IRBM) released a media statement titled, “Flexibility to Submit Consolidated e-Invoices during the Initial Period of Implementation of e-invoices”.
The announcement provides taxpayers with a 6-month grace period starting from 1 August 2024, which includes the following provisions:
1. Taxpayers may issue consolidated e-invoices for all transactions with the following allowances:
- Allowing all activities/industries to issue consolidated e-invoices, including self-billed e-invoices.
- Allowing any transaction description to be entered in the "Product or Service Description" field.
- If there is an e-invoice request from the buyer, the seller may issue a consolidated e-invoice without issuing an e-invoice for each transaction.
2. Penalties under Section 120 of the Income Tax Act 1967 for non-compliance with e-invoicing rules will not be applied to taxpayers, provided they adhere to the consolidated e-invoicing requirements.
Taxpayers who implement e-invoicing within the stipulated timeline without using the grace period will benefit from a reduced capital allowance claim period for ICT equipment and software packages from 3 years to 2, applicable from the 2024 to 2025 assessment years.