Govt raises e-invoicing income threshold to RM1mil

Previously, only businesses with annual revenue below RM500,000 were to be exempted from mandatory e-invoicing, which comes into effect on Jan 1.

Prime Minister Anwar Ibrahim said this was decided by the Cabinet yesterday. (Bernama pic)

PETALING JAYA:

 The government has decided to exempt businesses with annual revenue under RM1 million from e-invoicing, which comes into effect on Jan 1.

Prime Minister Anwar Ibrahim said this was decided by the Cabinet yesterday.

“The initial threshold of RM500,000 (for mandatory e-invoicing) has been raised to RM1 million. This means that small companies no longer need to carry out e-invoicing,” Anwar, who is also the finance minister, said at an event in Kota Kinabalu, Sabah, today.

In June, the Inland Revenue Board (LHDN) had said the finance ministry had decided that the implementation of e-invoicing for companies earning between RM1 million and RM5 million will be deferred to Jan 1, 2026 from the previous July 1, 2025.

Implementation for companies with annual revenue of up to RM1 million, now scrapped, was to have been deferred to July 1, 2026.

DAP adviser and former finance minister Lim Guan Eng had said the dismal performance of Pakatan Harapan in the Nov 29 Sabah state election could be attributed to Chinese voters’ rejection of specific policies such as expansion of the sales and service tax (SST), the e-invoicing rollout, as well as delayed tax refunds.

Separately, Anwar said that beginning Jan 1, the progress rate of all water supply, electricity and road projects in Sabah will be monitored on a monthly basis to prevent delays. - FMT