E-Invoice Treatment During Malaysia’s Interim Relaxation Period [Issue 1 of 2]
The transition to e-invoicing in Malaysia marks a significant shift in the way businesses handle their invoicing processes. Recognizing the potential challenges associated with this transition, the Government of Malaysia has introduced an interim relaxation period to facilitate a smoother implementation of the e-Invoice system. This article explores the details of the e-Invoice treatment during this interim period, as outlined in the recent guidelines provided by the Malaysian authorities.
Introduction to the Interim Relaxation Period
On 26 July 2024, the Government of Malaysia announced a six-month interim relaxation period for the mandatory implementation of the e-Invoice system. This period is designed to ease the burden on taxpayers as they transition to the new invoicing system. The relaxation period is segmented based on the annual turnover or revenue of the taxpayers, with different timelines provided for various categories of businesses.
Targeted Taxpayers and Their Respective Relaxation Periods
Phase | Targeted Taxpayers | Implementation Date | Interim Relaxation Period |
1 | Taxpayers with annual turnover or revenue >RM100 million. | 01 August 2024 | 01 August 2024 to 31 January 2025 |
2 | Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM100 million. | 01 January 2025 | 01 August 2025 to 30 June 2025 |
3 | All taxpayers. | 01 July 2025 | 01 July 2025 to 31 December 2025 |
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