Would charitable organisations be required to have e-invoice?

Charitable organisations such as places of worship are not bound to produce e-invoice, clarified the Finance Minister Datuk Seri Anwar Ibrahim.

“For charitable organisations such places of worship accepting donations or contributions would not be required to be bound to produce e-invoices.

“The e-invoice is only required from institutions organisations that has been approved under the Income Tax Act, such as subsection 44(6).

“For now, it is the responsibility of the organisations that receive donations or contributions must produce official receipts as evidence for tax deduction purposes.

“This move would not create an additional burden to charitable organisations, non-financial institutions or organisation since e-invoice replaces the official receipts,” said Anwar.

He explained this in his written reply to Lim Guan Eng (PH-Bagan) who asked whether organisations under the Registrar of Societies can be excluded from implementing e-invoicing as it would make it more difficult for voluntary work operations.

As for ROS registered organisations, those that conduct sales of products and services with sales value beyond RM500,000 would be required to implement e-invoice.

The third phase beginning from July 1 involves business with sales beyond RM5 million to RM25 million.

The fourth phase effective from January 1 2026 would involve business with sales beyond RM1 million to RM5 million.

The fifth phase would be from July 1 2026 for businesses with sales beyond RM500,000 to RM1 million.

“Charitable organisations, non-financial institutions or organisations with annual sales lesser than RM500,000 are not required to implement e-invoice,” he added.