LHDN Announces Six-Month Grace Period for E-Invoicing Implementation

LHDN Announces Six-Month Grace Period for E-Invoicing Implementation

On July 26, the Malaysia Revenue Board (LHDN) has announced a six-month grace period for the implementation of its MyInvois live e-invoicing mandate, which is set to commence on August 1, 2024. During this period, taxpayers with an annual turnover exceeding RM100 million will not be required to pre-clear their invoices. Instead, they can continue using their current invoice formats and report transactions digitally in a single submission by the 7th of the following month. Consequently, the first deadline for digital transaction reporting will be September 7, 2024. This optional post-issuance digital reporting phase will conclude on February 1, 2025, when penalties for non-compliance with the MyInvois live reporting requirements will be enforced.

Taxpayers who voluntarily adopt MyInvois live reporting from August 1, 2024, will be eligible for a reduced capital allowance claim period—from three years to two years—for the purchase of ICT equipment and computer software packages, effective from the Assessment Year (AY) 2024 to AY 2025.

During the grace period, businesses are not obligated to issue an electronic invoice upon consumer request. However, consumers may still request and receive a physical receipt.

This grace period is designed to provide taxpayers with ample time to ensure comprehensive and effective implementation of e-invoicing. This includes ensuring system availability, maintaining smooth business operations, and managing changes within their business processes.

Updated FAQs and Guidance Released

LHDN has also issued updated e-Invoice Frequently Asked Questions and Guideline dated 19 July 2024 for the MyInvois e-invoicing regime.

Contact Us for Support

If you have any queries or require assistance with e-invoicing, please do not hesitate to contact our support team:

We are here to help you navigate this transition smoothly and ensure your business is fully compliant with the new e-invoicing standards.