Type: Legislation
Using Italian SdI live electronic invoicing, the Inland Revenue Board confirms a phased introduction. Beginning in early 2024, Malaysia will be the latest country to introduce mandatory electronic invoicing for Sales and Services Taxes. According to the Malaysian Inland Revenue Board, it would be implemented gradually and most likely follow the Italian SdI model.
The Ministry of Finance claimed it was planning to introduce e-invoicing in its most recent 2023 Budget on October 7th in order to increase revenues and reduce unreported transactions. This is a component of a larger effort to digitize tax administration. Beginning in 2024, a trial program will be implemented, followed by a staggered rollout for other taxpayers for the remainder of the year.
Since 2015, Malaysia has legalized e-invoicing. The vendor and the buyer must agree as a pair. The minimum retention period for electronic invoices should be seven years.
All the nations requiring transaction-based reporting are listed in VATCalc’s international live VAT invoice transaction and e-invoice tracker on real-time transaction-based tax reporting.
Between 2015 and 2018, Malaysia implemented a complete VAT system known as Sales and Services Taxes. However, the old sales tax, the Goods and Services Tax, was reinstated. The Tax from Malaysia will probably come back.
Effective date: Early 2024