The Inland Revenue Board of Malaysia (IRBM) released updated guidelines on the new electronic invoicing (e-invoicing) requirements on 4 October 2024. These include the new e-Invoice Guideline (Version 4.0) and e-Invoice Specific Guideline (Version 3.1). Additionally, Updated General Frequently Asked Questions (FAQs) have also been available.
The primary updates are aligned with the Income Tax (Issuance of Electronic Invoice) Rules 2024, which were published in the Official Gazette on 30 September 2024. These rules will come into operation on 1 October 2024.
Taxpayers are required to issue e-invoices starting from the specified dates:
| Targeted taxpayers | Implementation date |
|---|---|
| Taxpayers with an annual turnover or revenue of more than MYR 100 million | 1 October 2024 (Previously 1 August 2024) |
| Taxpayers with an annual turnover or revenue of more than RM 25 million and up to MYR 100 million | 1 January 2025 |
| All other taxpayers | 1 July 2025 |
The dates mentioned do not affect the previous e-invoice implementation schedule, including 1 August 2024 for taxpayers with turnovers exceeding MYR 100 million. Instead, they pertain to when the tax authority (IRBM) may begin enforcing non-compliance actions. Penalties for non-compliance will begin on 1 October 2024 for taxpayers with annual turnover over MYR 100 million, while other dates and penalties remain unchanged.
Exemptions from implementing e-Invoice
For the purposes of e-Invoice, the following persons are currently exempted from issuing e-Invoice (including issuance of self-billed e-Invoice). They are:
- Foreign diplomatic office;
- Individuals who are not conducting business;
- Statutory body, statutory authority, and local authority, in relation to the following:
- Collection of payment, fee, charge, statutory levy, summon, compound, and penalty by it in carrying out functions assigned to it under any written law; and
- Transaction of goods sold and services performed before 1 July 2025;
- International organisation for the transaction of any goods sold or service performed before 1 July 2025;
- Taxpayers with an annual turnover or revenue of less than MYR 150,000.
The above-mentioned persons are not required to issue an e-invoice (including self-billed e-invoice). For tax purposes, the receipts/any existing documents issued by the above-mentioned persons would be used as proof of expense.
