LHDN doesn’t plan to extend the date for e-invoicing
The Inland Revenue Board (LHDN) does not intend to extend the Feb 1 soft-landing deadline even if businesses struggle to adopt e-invoicing.
Companies in the first phase of the e-invoicing roll-out will be liable for a fine ranging from RM200 to RM20,000 or imprisonment for up to six months for every case of non-compliance.
LHDN will handle enterprises that fail to adopt e-invoicing from Feb 1 using a case-by-case approach completely, nonetheless, given some companies experiencing problems.
Plans do not provide for extending the February 1 deadline.
LHDN does admit, though, that certain businesses could have real difficulties fulfilling the criteria.
“We are ready to assess every scenario individually to enable a seamless switch to e-invoicing for every interested party.
LHDN advised businesses to use the tools given and get help from them when answering questions The Star asked about the February 1 deadline.
Companies having yearly revenue of RM100 million and more are obliged under the first phase of e-invoicing to adopt the new filing system from Aug 1 last year.
Still, a six-month soft landing period was granted so they could completely embrace the new system by February 1 of this year.
We allowed these businesses to use the current accounting system for online filings, combining their e-invoices on a monthly basis instead of daily.
Concurrent with this, LHDN’s most recent data shows that more than 5,300 first-phase enterprises have been aggressively sending e-invoices, suggesting a satisfactory degree of preparation.
“Moreover, roughly 40% of Phase 2 and Phase 3 taxpayers have voluntarily used e-invoices as of Jan 1 this year,” LHDN noted.
In all three phases, taxpayers have entered 133 million e-invoices, according to the most recent data, LHDN reported.
Companies with yearly revenue between RM25mil and RM100mil under Phase 2 must start e-invoicing by Jan 1.Except for micro, small, and medium firms with yearly earnings of less than RM150,000, all companies have to completely embrace e-invoicing by July 1 of this year.