KUALA LUMPUR: There are no plans at the moment to raise the threshold for the implementation of e-invoicing by micro, small and medium enterprises (MSMEs) in July next year says Lim Hui Yin.
The Deputy Finance Minister said that the exemption of e-invoicing for MSMEs with annual sales below RM150,000 threshold remains.
"At the present moment, this threshold will be maintained.
"The exemption will involve over 700,000 MSMEs who need not issue e-invoices," she said when wrapping up her ministerial debates on the Measures for the Collection, Administration and Enforcement of Tax Bill 2024 in Dewan Rakyat on Wednesday. (Dec 4)
Lim was responding to questions raised during debates on whether the government would raise the RM150,000 threshold to exempt small businesses from e-invoicing.
On Aug 1, the Inland Revenue Board (LHDN) rolled out the first phase of the e-invoice system involving companies with an annual turnover of more than RM100mil.
The second phase will start on Jan 1 involving companies with an annual turnover of between RM25mil and RM100mil.
The full implementation of the e-invoice will be on July 1 next year involving all businesses including micro, small and medium enterprises. (MSMEs).
In July, Finance Minister II Datuk Seri Amir Hamzah Azizan announced that MSMEs earning less than RM150,000 annually will not be required to issue e-invoices when the system is fully implemented next year.
As of mid-October, over 7,000 companies have adopted the e-invoice system with 58 million e-invoices issued.
Although MSMEs with annual sales below RM150,00 would be exempted from issuing e-invoices, Lim urged them to voluntarily participate in the digital transformation.
She said that e-invoicing would help small businesses better manage their business records while improving efficiency.
On companies that are involved in e-voicing, she said that some flexibility has been given to them to adjust to the new system.
Among them, she pointed out, was allowing businesses to issue monthly consolidated e-invoices under a six-month grace period.
"During this transition period, no penalty will be imposed on companies if they have at least issued their monthly consolidated e-invoices," she added.
To further assist businesses switch to e-invoicing, Lim said that LHDN has set up the MyInvois portal for them to use free of charge to issue e-invoices.
Apart from this, she added that LHDN has also developed the MyInvois application to allow businesses to issue e-invoices through mobile phones.
She said that engagement sessions will be continued with stakeholders including "hand-holding programmes" to educate businesses on the use of the e-invoicing system.
The Bill was passed by the House unanimously through a voice vote.
