The Inland Revenue Board of Malaysia (IRBM) has provided a six-month grace period starting August 1, 2024, for taxpayers to comply with the new e-invoicing requirements due to the complexity and challenging business environments. During this period, businesses must report transactions to the tax office with a single consolidated e-invoice (monthly) covering all types of supplies, including self-billed invoices. The IRBM will need to issue and send these invoices within seven days from the end of the month for validation, with the first report deadline on September 7, 2024.
Additionally, if a buyer requests an e-invoice, sellers can issue consolidated e-invoices without generating individual invoices for each transaction. Penalties will apply if e-invoices are not issued monthly within the first six months, but no prosecutions for non-compliance will occur under Section 120 of the Income Tax Act 1967 during this grace period, provided taxpayers follow the consolidated e-invoicing rules. This relaxation aims to give businesses ample time to effectively implement e-invoicing, ensuring system availability, smooth business operations, and effective change management.
