LHDN on E-Invoicing Concerns, Potential Benefits, and Underlying Objective

Whether rightly or wrongly, there are members of the business community, large and small, that have concerns and worries about e-invoicing.

Given that e-invoicing is not just about sending invoices digitally, but adds a new layer to processing a transaction which requires real-time validation from LHDN’s system, there’s been some pushback and criticism on potential added cost, complexity, and friction that this potentially brings to businesses, with particular concern around MSMEs and even SMEs.

Following up from our previous episode on the basics of e-invoicing, on this episode of P&L, we speak directly with LHDN and hope to address some of those concerns and shed light on the e-invoicing regime with LHDN’s Dr Rasyidah Che Rosli, as well as Adrian Lim, LHDN’s Project Management Consultant, who is also Technology Consulting Partner at EY.

We’ll hear directly from LHDN about some of the basic mechanisms and objectives behind the e-invoicing regime, how LHDN is engaging with and supporting businesses of all sizes through this transition, and the potential benefits that LHDN thinks will come from this push.

E-invoicing comes into play in phases starting August 1st, with full implementation just over a year from now in July 2025.

Other related shows:

• LHDN’s e-Invoicing Regime: What Businesses Need to Know Now

• Demystifying Malaysia’s New Capital Gains Tax

• SST Basics, Key Compliance Mechanisms, and March 2024 Changes