The transition to e-invoicing in Malaysia has highlighted varying levels of readiness among taxpayers, according to a survey conducted by KPMG in Malaysia. While some respondents reported their experience met expectations, many raised concerns about added costs for IT upgrades and the need for additional staff training.
The survey, carried out during a tax forum organised by KPMG and the Inland Revenue Board (IRB) of Selangor, revealed a demand for clearer guidelines and enhanced support from the IRB. Respondents particularly sought technical clarifications, better business practice alignment, and improvements to the MyInvois portal.
Head of Tax at KPMG in Malaysia Soh Lian Seng, shared that among businesses in Phases 2 and 3 of the e-invoicing implementation, 32% were more than halfway ready, while 62% were less than halfway prepared. “Learning from Phase 1 taxpayers, there is a clear need for continued support and guidance from IRB to ensure a smooth nationwide transition,” Soh said.
Key challenges identified in the survey include:
- 35% reported difficulties in securing resources such as manpower, IT, and funding.
- 27% cited the immediate need for system upgrades.
- 22% requested more support from IRB during the transition.
As of November 2024, IRB has received 90.2 million e-invoice submissions from 8,000 taxpayers. With Phase 1 implementation commencing on 1 August 2024, IRB is preparing for a higher volume of queries in the upcoming phases.
Soh added, “Upon full implementation, e-invoicing will enable IRB to leverage real-time data, enhancing tax compliance monitoring and reducing errors and fraud, which supports Malaysia’s move towards co-operative compliance.”
