LHDN to Implement E-Invoicing in Stages from 2024
The implementation of the electronic invoicing (e-invoicing) system by the Inland Revenue Board (LHDN) will be rolled out gradually, commencing from the following year. Currently, the board is actively engaged in the preparation and development phase, working on the essential user requirements and solutions required to facilitate the smooth execution of the e-invoicing process.
In a statement, LHDN shared that it will kickstart the initiative via a pilot phase in January 2024, with the cooperation of selected companies, although those who wish to be onboarded earlier may volunteer as well. This will then be followed by the mandatory adoption of the e-invoicing system by all companies in stages, based on their annual revenue, as indicated below:
As part of the preparatory work, the Inland Revenue Board (LHDN) and MDEC will collaborate to organise engagement sessions with service providers. These sessions aim to create a platform for sharing valuable information regarding the implementation of e-invoicing. The discussions will cover various aspects, including best practices, technical requirements, and compliance guidelines related to the adoption of e-invoicing.
International studies have shown that the implementation of e-invoicing not only enhances tax collection and the quality of services offered by tax administrators but also provides numerous benefits to taxpayers. These benefits include improving business operational efficiency, facilitating record-keeping, and reducing tax compliance costs.
Furthermore, the implementation of e-invoicing can also facilitate transparent business transactions, thereby helping the government address issues related to the shadow economy in business transactions. In this regard, the collaboration between MDEC and HASiL is crucial in the collective effort to enhance the sustainability of the national taxation system and gain the trust of the people.
Get ahead of the curve with DespaQ to embrace E-Invoicing for streamlined tax compliance and stay ahead in today's digital landscape. Contact us today to explore how DespaQ can help your business thrive in the era of digital invoicing and gain a competitive edge.