What Businesses Should Know About Malaysia's Incoming E-Invoicing System

A total of 4,000 companies with revenue of more than RM100 million are set to become the first group to implement the Inland Revenue Board's (IRB) new e-invoice system from June 1 next year. Following this, in 2025 it will be mandatory for businesses with turnover of more than RM50 million; then in 2026 for businesses with over RM25 million turnover and finally in 2027 for all businesses.

E-invoicing could bring better transparency to the IRB, while also saving time for both IRB and taxpayers, but the bigger hope is that the introduction of an e-invoicing system for businesses will see improved tax compliance and address the leakage in taxes arising out of the shadow economy.

However, with that in mind, should businesses brace themselves to potentially pay more taxes? We speak to Ts. Mahadhir Aziz, Chief Executive Officer of MDEC - the Malaysian Digital Economy Corporation, about this, the rollout of the national e-invoicing initiative, and what businesses should know about it.