Government greenlights MSMEs to issue consolidated e-invoices

The government has approved a policy enabling micro, small, and medium enterprises (MSMEs) to issue consolidated e-invoices. 
These invoices will encompass all sales transactions conducted within a month.

Second Finance Minister Amir Hamzah Azizan said MSMEs are only required to submit their consolidated e-invoices to the Inland Revenue Board (LHDN) within the first seven days of the subsequent month.

“The government is aware of the challenges faced by MSMEs in adopting e-invoices, especially the higher operational cost, technological application and the gap in knowledge readiness on e-invoice,” he told Dewan Rakyat.

He was responding to Khoo Poay Tiong (PH-Kota Melaka), who inquired about the government’s efforts to help small and medium enterprises implement e-invoicing and manage the related maintenance costs.

The minister explained that e-invoices can be transmitted either through the MyInvois portal or a point-of-sale system at no additional cost, and integrated the business accounting system with the MyInvois system.

Traders opting to develop their own systems or utilise technology providers are eligible for tax incentives, such as a reduction in the capital allowance claim period for ICT equipment and computer software packages from four years to three years, effective starting the assessment year 2024.

He also mentioned that traders will benefit from a tax deduction of up to RM50,000 per assessment year for consulting fees incurred by MSMEs from the assessment year 2024 to 2027.

“The government is also aware that the process to adapt to e-Invoicing requires a long period due to the challenges and constraints faced, especially for small traders such as roadside stalls or door-to-door businesses.

“Currently, small traders who have annual sales of below RM150,000 do not need to issue e-Invoices. However, the government is encouraging the involvement of small traders in the e-Invoicing initiative in line with the country’s aspirations towards digitisation of business,“ he said, reported Bernama. 

He said that the government plans to facilitate a flexible transition to e-invoicing through an “educate and correct” strategy. This commitment extends to assisting all companies, including MSMEs, in the complete adoption of e-invoicing.