As per the presentation held by the Inland Revenue Board (IRB) in March 2023, a phased timeline for the implementation of e-Invoicing has been introduced. The IRB plans to start with a pilot project for selected companies in 2023, although no specific details about the e-Invoicing system have been disclosed publicly yet.
The timeline shared by the IRB outlines the gradual introduction of e-Invoicing as follows: voluntary implementation for businesses will begin in January 2024, followed by mandatory implementation for businesses with annual turnover of MYR 100 million in June 2024.
Further, mandatory implementation will be enforced for businesses with annual turnover of MYR 50 million in January 2025, followed by businesses with annual turnover of MYR 25 million in January 2026. Finally, by January 2027, mandatory implementation of e-Invoicing will be extended to all businesses.
This phased approach will allow businesses to prepare for the mandatory implementation of e-Invoicing over a period of several years. It will provide ample time for businesses to adjust their processes and systems to comply with the new regulations. Additionally, the implementation of e-Invoicing is expected to bring about increased efficiency and transparency in the tax system in Malaysia.
Effective date: January 2024