GEORGE TOWN: The Inland Revenue Board (LHDN) has validated more than 328 million e-invoices since the country began its move towards a digital tax system last year.
LHDN’s e-invoicing director Rasyidah Che Rosli said the numbers came from about 35,000 taxpayers who submitted their records through the new system.
“These are from users in Phases 1 and 2. Some smaller taxpayers have also joined voluntarily ahead of their mandatory dates,” she said, speaking to reporters on the sidelines of an event by CTOS in Bayan Lepas today.
LHDN is phasing in e-invoicing by company size, with Phase 1, which started on Aug 1 last year, covering large businesses with annual sales of over RM100 million.
Phase 2, which started on Jan 1, covers companies with sales of between RM25 million and RM100 million.
Phase 3 (RM5 million-RM25 million turnover) starts on July 1 and Phase 4 (RM1 million-RM5 million) on Jan 1, 2026. The smallest firms (below RM1 million) will come on board by July 1, 2026.
The e-invoicing system, part of the government’s plan to improve tax compliance and reduce fraud, is meant to help LHDN keep a better record of business deals and make it easier for taxpayers to fill in their tax forms.
E-invoices, which let businesses report sales immediately or on a monthly basis, are sent in real time or in monthly groups.
The system can also handle self-billed e-invoices, such as for transactions with foreign suppliers or people who do not run businesses.
