LHDN grants 6-month concession on e-invoices

 

LHDN chief executive officer Abu Tariq Jamaluddin said the concession allows taxpayers to issue consolidated self-billed e-invoices. (Bernama pic)

CYBERJAYA: 

The government has agreed to allow companies to submit a single consolidated e-invoice within the first six months of their implementation of the new e-invoicing system, says the Inland Revenue Board (LHDN).

The concession is to ensure taxpayers have sufficient time to fulfil all the legal requirements as they implement the mandatory system, said LHDN chief executive officer Abu Tariq Jamaluddin.

The e-invoice system is being rolled out gradually from Aug 1, starting with businesses with an annual turnover or revenue of more than RM100 million. It will eventually be extended to all businesses by July 1 next year.

Abu Tariq said this concession also allows taxpayers to issue consolidated self-billed e-invoices on top of consolidated e-invoices.

He said taxpayers can fill their transaction descriptions in the invoice’s 

product and service description

 field.

Sellers are allowed to provide a single consolidated e-invoice instead of individual e-invoices for buyers who request them.

No penalty will be imposed on taxpayers who fail to (fully) implement the new system if they comply with the concession,

 he said.

Abu Tariq said the government has also increased tax incentives for companies that successfully implement the e-invoice system. Among them is a reduction in the capital allowance claim period from four years to three for the purchase of ICT equipment and computer software packages for assessment years 2024 and 2025.

Chartered Tax Institute of Malaysia president Soh Lian Seng welcomed the leeway provided as it would mean more time for taxpayers to implement the system.

Waiving the penalty for taxpayers who fail to comply with the timeline provides a real breather (if they issue a single consolidated e-invoice),

 said Loh. - FMT