IRB ENCOURAGES MSMES TO VOLUNTARILY IMPLEMENT E-INVOICING

KUALA LUMPUR, Jan 21 (Bernama) — The Inland Revenue Board of Malaysia (IRB) is encouraging micro, small and medium enterprises (MSMEs) to voluntarily implement e-Invoicing due to its significant benefits for business operations and to prepare themselves for the digital economy.

IRB Tax Operations Sector, e-Invoicing Division director Dr Rasyidah Che Rosli said the implementation of e-Invoicing completes the transition of business document management from manual methods to digital, which adds value to businesses.

She said e-Invoicing replaces traditional practices that rely on physical record-keeping such as receipts, manual logbooks and invoice files, which are exposed to risks such as loss, damage, incorrect recording and the need for storage space.

According to her, physical business records are also easily affected by external factors such as floods, fires and theft, which can disrupt the continuity and sustainability of business operations.

With the implementation of e-Invoicing, all transaction information is stored digitally and can be accessed at any time. This helps to resolve common issues among MSMEs such as inconsistent records, mixed and poorly organised data, transaction calculation errors, and difficulties in preparing financial reports.

Addressing concerns among small traders regarding costs and digital adoption, Dr Rasyidah said the IRB has considered all these aspects by providing a free e-Invoicing platform.

She said traders do not need to incur any costs to implement e-Invoicing, and LHDN also helps to cover operational costs through the provision of the My e-Invois e-POS (point of sale) system, which enables traders to manage business operations and implement e-Invoicing digitally.

According to her, even without e-Invoicing, traders would still need a digital system to manage their businesses. This approach was therefore adopted to avoid placing an additional cost burden on small enterprises.

In terms of digital adoption, she said the IRB understands that small traders need time to adapt, and (it is) therefore providing direct support, including hands-on assistance by IRB officers to help with the activation and implementation of My e-Invois.

The government has also granted flexibility in the e-Invoicing implementation period for small traders, extending it from six months to 12 months, taking into account their capacity and readiness.

— BERNAMA