Six-Month Grace Period for Malaysian E-Invoicing Implementation

Timeline

The grace period will start from August 1, 2024, lasting until February 1, 2025.

Impact

The Inland Revenue Board of Malaysia (IRBM) has released a press release regarding e-invoicing. The announcement includes several key points:

• The Malaysian government has granted a six-month grace period for e-invoicing fines to help businesses adjust to the new requirements.
• The grace period begins on August 1, 2024, allowing businesses until February 1, 2025, to comply without penalties.
• Taxpayers who successfully implement e-invoicing according to the stipulated timeline will benefit from a reduction in the period for capital appreciation claims from 3 years to 2 years for the purchase of ICT equipment and computer software packages from Tax Year 2024 to 2025.
• Consolidated invoices must still be issued during this grace period

Note: This grace period mainly impacts businesses with revenue over 100 million MYR. All other businesses are still required to implement e-invoicing by:

• Jan 2025, for businesses with >MYR 25 million revenue
• Jul 2025, for all remaining taxpayers.

This grace period provides businesses with additional time to adapt to the new e-invoicing requirements, ensuring a smoother implementation process. Companies should take advantage of this extension to ensure compliance and benefit from the incentives offered for early adoption. Staying informed and preparing for these changes is crucial for maintaining smooth operations and leveraging the provided benefits.