Mohd Nizom says guidelines for the system will be made available by the end of this week.
PETALING JAYA: The electronic invoicing system (e-invoicing) introduced by the Inland Revenue Board (IRB) is on track with its progress so far.
The pilot project for the system will be launched in January 2024, while implementation will begin in June 2024.
IRB chief executive officer Datuk Mohd Nizom Sairi said guidelines for the system will be made available by the end of this week.
“All the information that businesses need to adapt to this initiative will be in those guidelines and it will be open for discussion,” he said during an engagement session with the World Sikh Chamber of Commerce yesterday.
Mohd Nizom said he had visited countries like Mexico and Chile to learn about how their governments had implemented these systems successfully.
“In the Latin Americas, they have used this system for more than 10 years now. For example, in Mexico, more than two million transactions are processed each second and do not disrupt businesses at all. That is what we want to do here too,” he said.
The system will use the continuous transaction control model, whereby invoices will undergo a validation process that is meant to be very quick.
“A part of the validation process will include ensuring the issuer and recipient are both genuine parties. Every business transaction will undergo this single framework, so the IRB will have the records of all transactions made by those participating,” he said.
He said they will also look at how to bring international businesses into the fold in the future, as many businesses in Malaysia today purchase raw materials or other items from sellers overseas.
In terms of challenges, Mohd Nizom said advanced economies might have the perception that their governments might become the “Big Brother” who knows everything.
“There are actually many benefits to this system, which in the long run will help businesses become more efficient and productive,” he said.
The guidelines will also include connectivity issues for those living or conducting business in rural areas.
“In Mexico, there is a grace period of three days which allows business owners to key in the receipts during that time. So we learnt from there. Malaysia has been moving toward 5G, so in terms of reach, we are quite good,” he said.
Mohd Nizom said there will be an open tender for the development of the infrastructure that will also take place by the end of this week.
“The tender will be open for 21 days before we review all of it and then make our decision.
“Anyone can bid for it. We are looking for the best people who will be able to develop this system as well as maintain the safety and privacy of people’s data,” he said.
The e-invoicing system will begin with businesses that have a RM100mil turnover in June 2024, followed by businesses that have RM50mil turnover and RM25mil turnover before applying to individuals.
“We do, however, believe the timeline will go faster, as the different groups of people that begin working together will start implementing the system into their businesses. We have limited time, but I am confident of the timeline,” he said.
