CYBERJAYA, July 26 — The government has agreed to give a six-month grace period to taxpayers from the date of mandatory implementation of e-Invoicing, which starts on August 1, said Inland Revenue Board (IRB) chief executive officer Datuk Abu Tariq Jamaluddin.
The grace period was given to ensure the smooth implementation of e-invoicing.
“It is given to taxpayers for six months from the date of mandatory implementation of e-Invoices to issue consolidated e-Invoices for all transactions.
"Through the grace period, the IRB allows all activities or industries to only issue consolidated e-invoices," he said during a special press conference today.
Abu Tariq said the IRB allows any transaction description to be entered in the "Product or Service Description" field. If the buyer requests an e-invoice, the seller is also allowed to only issue a consolidated e-invoice without issuing an e-invoice for each transaction.
During the six months, no prosecution action would be taken under Section 120 of the Income Tax Act 1967 against non-compliance with the e-invoicing rules provided that the taxpayer had complied with the consolidated e-invoicing requirements.
"This grace period is expected to give taxpayers enough time to ensure the full implementation of e-invoicing, which is more effective. It covers all aspects, including system availability, smooth business operations, and change of management," he said.
Meanwhile, the government will recognise taxpayers who successfully implement e-invoices according to the set timeline by providing a reduction in the capital allowance claim period from three years to two years.
Abu Tariq said the capital allowance claim period will be reduced for the purchase of ICT equipment and computer software packages from Assessment Year (AY) 2024 to AY 2025.
Previously, the IRB said e-invoicing's first phase will start on August 1 involving companies with annual income or sales exceeding RM100 million.
The second phase will involve companies with annual income or sales exceeding RM25 million to RM100 million.
— Bernama
