Over 5,000 companies have registered for access to the Inland Revenue Board’s (LHDN) MyInvois portal in preparation for the upcoming e-invoicing rollout on August 1, according to Datuk Dr. Abu Tariq Jamaluddin, LHDN’s CEO.
“As of June 30, more than 5,000 companies have received their client identification and secret keys to access our MyInvois API Testing Environment, also known as the Sandbox Environment,” Abu Tariq shared during a virtual session hosted by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) on Tuesday.
This preparation is critical for a seamless transition to the new e-invoicing system, which has already seen over 20.5 million access requests between April 10 and June 30 as part of the testing phase.
More than 100 pioneer companies have already been granted access to the LHDN MyInvois portal and have begun issuing e-invoices since May 2, ahead of the mandatory implementation date.
Starting August 1, businesses with an annual turnover exceeding RM100 million must implement e-invoicing. Those with revenues between RM25 million and RM100 million are required to follow suit by January 1 next year. By July 1, 2024, all other businesses, including SMEs, hawkers, and traders, must adopt the system, as mandated by LHDN.
Finance Minister II Datuk Seri Amir Hamzah Azizan recently announced that micro, small, and medium enterprises (MSMEs) earning less than RM150,000 annually are exempt from the e-invoicing requirement by LHDN.
Addressing concerns about potential delays, Abu Tariq emphasized that the new system had been in the pipeline since 2022, including during the Budget 2024 discussions. Despite calls to defer full implementation to January 1, 2027, LHDN has made several concessions to ease the transition. These include allowing consolidated monthly e-invoicing instead of issuing an e-invoice for every transaction.
Companies are required to keep records of all transactions and issue e-invoices upon buyer or customer requests. However, MSMEs with turnovers below RM150,000 will not need to submit e-invoices or consolidated e-invoices for the time being, as clarified by LHDN.
Related: Is Your Business Ready for the Implementation of E-Invoicing?
The LHDN CEO assured that guidelines would be updated to reflect these exemptions and emphasized a lenient approach towards non-compliance, considering reasonable excuses, such as poor internet connectivity in rural areas.
“We will review cases individually and not impose penalties for non-compliance if justified,” Abu Tariq said, noting that national coverage should mitigate connectivity issues.
This move by LHDN is seen as a significant relief for smaller businesses, ensuring they are not overburdened by new regulatory requirements while still encouraging broader adoption of digital invoicing practices in Malaysia.
Source: here
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