PETALING JAYA: The implementation of the electronic invoicing (e-invoicing) system will be helpful should the government plan to reintroduce the goods and services tax, according to the Inland Revenue Board (LHDN).
LHDN CEO Nizom Sairi said the e-invoicing system was designed to accommodate GST and the adoption of this system would push for greater transparency within the cash economy and shadow economy.
“The people are talking about the reintroduction of GST, and if it happens, you don’t have to do anything further. It (e-invoicing) actually caters to the GST system,” he told reporters on the sidelines of Grant Thornton Malaysia’s seminar on the 2024 budget here today.
According to Bernama, Nizom also said the e-invoicing system would help the government achieve its 2024 tax collection target of RM185 billion.
He said that based on case studies of different countries, the application of e-invoicing would require businesses to maintain a comprehensive record of their transactions for reporting to LHDN.
“There are a lot of activities happening under the radar that will be forced to surface and operate above board,” he said.
Tabling the 2024 budget proposals on Oct 13, Prime Minister Anwar Ibrahim said the government will enforce e-invoicing on a mandatory basis for taxpayers with an annual income or sales exceeding RM100 million beginning August next year.
He said e-invoicing for taxpayers of other income categories will be enforced in phases with a comprehensive implementation target by July 1, 2025.
Anwar said the use of the tax identification number (TIN) will also be expanded to support the implementation of e-invoicing. This will help further broaden the taxpayer net following voluntary tax compliance which, in turn, will reduce revenue leakage. - FMT
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