Micro, small and medium enterprises (MSMEs) that are earning less than RM150,000 annually are not required to issue e-invoices, Finance Minister II Datuk Seri Amir Hamzah Azizan announced in Parliament on 2 July 2024.
Nevertheless, the government encourages small traders to participate in the e-invoicing initiative to promote business digitalisation, in line with the national aspiration.
FM Amir Hamzah acknowledged the challenges MSMEs face with e-Invoices, such as higher operational costs, technology adoption, and knowledge gaps. He outlined two methods for e-Invoice transmission: using the MyInvois portal or point-of-sale system, and integrating business accounting systems with MyInvois.
Tax Breaks and Reduced Claim Periods to Support SME E-Invoicing Adoption
The government plans a flexible transition to e-Invoicing, focusing on education and correction, and will assist all companies, including MSMEs, in fully implementing e-Invoicing.
To support this transition, the government offers tax incentives, including reducing the capital allowance claim period for ICT equipment and software from four years to three years starting in 2024. MSMEs can also get a tax deduction of up to RM50,000 annually for consulting fees from 2024 to 2027.
The Malaysian government will also now allow micro, small, and medium enterprises (MSMEs) to issue consolidated e-Invoices that combine all sales transactions for each month. These e-Invoices must be submitted to the Inland Revenue Board of Malaysia (LHDN) within the first seven days of the following month.
Refresher on E-Invoice vs Consolidated Invoices
In general, e-Invoices and consolidated invoices serve different purposes. An e-Invoice is a digital version of an invoice created, transmitted, and received electronically for each individual transaction. It allows for real-time or near-real-time reporting and ensures compliance with tax regulations. These invoices often require integration with electronic invoicing systems like MyInvois.
Use our step-by-step guide for guidance on using the MyInvois Portal Testing Environment (Available since 24/06/2024 for Phase 1 taxpayers). Do note that all data submitted in the testing environment will not be migrated to the actual MyInvois Portal production environment
On the other hand, a consolidated invoice summarizes all sales transactions for a month into a single invoice, simplifying record-keeping and reporting. This type of invoice reduces the administrative burden by combining multiple transactions into one report. MSMEs can submit consolidated e-Invoices to the Inland Revenue Board within the first seven days of the following month, making it easier to manage and report transactions in bulk.
The main difference lies in the frequency and detail of reporting: e-Invoices are for individual transactions and immediate reporting, while consolidated invoices offer a periodic summary for ease of management.
Are you feeling confused by the e-Invoicing system?
Or overwhelmed by the numerous challenges and difficulties as you implement this new policy?
We understand the complexity of the e-Invoicing system and recognize that implementing it can be particularly challenging for small and medium-sized enterprises (SMEs). To help SMEs fully grasp and adapt to this new policy, we’ve designed a comprehensive 4-hour online course that covers EVERYTHING you need to know to transition to e-invoicing with confidence.
Whether you’re new to e-Invoicing and eager to understand the system, or someone with some foundational knowledge seeking to deepen your understanding, our course offers in-depth and practical insights to help you tackle the challenges of this system.
What you’ll learn in the course:
1. E-Invoicing System Framework
We’ll help you understand the entire framework of the e-Invoicing system, including its operational logic and key implementation points, so you can better adapt your business setup to e-Invoicing.
2. How It Works
We’ll explain the working principles of the e-Invoicing system, covering every step from generation and transmission to receipt, validation, storage, and management of electronic invoices. We’ll also demonstrate how to generate a compliant electronic invoice using accounting software.
3. Impact on Businesses
We’ll discuss the impact of e-Invoicing on businesses, from the responsibilities of business owners to what department managers and employees need to understand. We aim to clarify that implementing e-Invoicing is not solely the responsibility of the business owner but involves everyone in the company.
4. Policy Changes and Response
We’ll keep you updated on all e-Invoicing guidelines changes and provide the latest information and response strategies that you can apply into various scenarios within your business.
5. System Tools and Training
We’ll introduce you to various e-Invoicing systems and accounting software available in the market and provide insights into related training content. You’ll be equipped to decide which e-Invoicing system/software best suits your business needs to reduce costs and improve efficiency.
6. Q&A Session
If you have any questions or concerns that require professional answers, our expert instructors will address them at the end of the course.
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Sign up ONCE and re-attend the e-Invoicing online course every month FOR FREE
Now, for a one-time fee, you can attend our e-Invoicing online courses for free every month! This is a rare opportunity—sign up now!
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Course Details:
📌 e-Invoicing online workshop (#Chinese)：
Date: 29/10/2024 (Tuesday)
Time: 9:30am – 4:00pm
📌 e-Invoicing online workshop (#English)：
Date: 30/10/2024 (Wednesday)
Time: 9:30am – 4:00pm
🎟 Workshop Fee：
Bispoint Customer – FREE
Enlliance Member – FREE
Non-Customers (Early Bird): 1pax (RM180); 3pax (RM400)
Non-Customers (After 23 October, Regular Price) – 1pax (RM200)
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