Shortened lead time: Business groups say the software development kit (SDK), which was released later than expected, requires integration and adaptation. — YAP CHEE HONG/The Star
PETALING JAYA: A trial run involving enterprises for the MyInvois e-invoicing system should be held to identify potential issues before it is officially implemented, say leading trade groups.
With three months to go before the first-wave rollout of the system on Aug 1 for some 4,000 companies with annual turnovers of RM100mil and above, they called for a longer trial period to better understand the system.
Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) treasury-general Datuk Koong Lin Loong said the government should initiate a pilot run involving a diverse range of enterprises.
He suggested that the trial run involve 50 large corporations with an annual turnover above RM100mil, 50 medium-sized companies with a turnover between RM25mil and RM99mil, and 50 smaller companies with an annual turnover below RM25mil.
To get better feedback, they should ideally come from a variety of industries and sectors.
“Why not have a pilot run with these different types of companies for about six to nine months? This will allow us to identify potential issues faced by businesses,” he said.
Koong said the government should not rush into enforcing MyInvois, fearing a repeat of the “chaotic” implementation of the Goods and Services Tax (GST) back in 2015, which led to many complaints from businesses and the public.
The Inland Revenue Board previously announced that Malaysia would gradually implement e-invoicing.
Companies with annual sales exceeding RM25mil and up to RM100mil will start using e-invoices. The system will be fully enforced starting July 1, 2025.
A “test environment” has been accessible since Wednesday.
It will be open to other companies and service providers on April 22.
Federation of Malaysian Manufacturers president Tan Sri Soh Thian Lai said the concern is about the shortened lead time and the complexities with technology and integration.
“The software development kit (SDK) was only released in early February, instead of the last quarter of 2023.
“This shortened the lead time that these companies have to integrate and adapt to new technologies and system changes,” he said.
Integration is tough for companies in the first phase, he said, given their size, volume and complexity of transactions, including export and import transactions, as well as the readiness of their systems.
Soh also raised the issue of compliance, saying that this would depend on other ministries and government agencies, which can lead to other challenges.
“This is especially when these ministries or government agencies may not directly be under the e-invoicing implementation and may not see the urgency in making certain changes to their work processes in order for companies to comply with the e-invoicing requirement,” he added.
As such, Soh said he hopes the government could allow for a longer grace period for these businesses.
Malaysian Consortium of Mid-Tier Companies president Callum Chen was agreeable to having a trial period too.
“Anything to make the e-invoice clearer is always welcome. Companies need to learn how to use it, and the government needs to make the way forward clearer,” he said.
He said that time must be given to companies to build a talent pool that has the skills to manage e-invoicing.
Chen also said the penalty for non-compliance is too hefty.
There should be no penalty during the trial period, he said.
ACCCIM president Tan Sri Low Kian Chuan urged the government to provide technical assistance, such as e-invoicing toolkits.
“The adoption of e-invoicing necessitates Internet access and devices, which are lacking in many micro and small enterprises,” he said.
Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry president Nivas Ragavan is concerned that the first phase implementation will also indirectly affect smaller businesses.
“Automatically, in the supply chain, all the suppliers would be required to adopt the e-invoice system. Instead, the e-invoice system should be implemented overall for all businesses,” he said.
