Malaysia e-invoicing 2023 confirmed in budget

October 14, 20220

Type: Draft Legislation

Beginning in 2023, Malaysia will be the newest country to make electronic invoicing for Sales and Services Taxes mandatory. According to the Malaysian Inland Revenue Board, it will be implemented gradually and most likely follow the Italian SdI model. 

The Ministry of Finance stated it was planning to implement e-invoicing to increase revenues and reduce unreported transactions in its most recent 2023 Budget, on October 7. This is a component of a larger effort to digitize tax administration. A pilot program will start at the beginning of the year, and other taxpayers will gradually be introduced throughout the remainder of the year. 

In Malaysia, e-invoicing is accepted since 2015. Vendor and customer must consent; this is a requirement. It is recommended to keep electronic invoices for at least seven years. 

In Malaysia, a full VAT system known as sales and services taxes was implemented between 2015 and 2018. However, it moved back to the previous sales tax, the Goods and Services Tax. Malaysian GST is presumably going to return. 

 

Effective date: 2023

Source

 

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