The e-invoicing system has recorded significant progress, with 24,700 taxpayers adopting it and 173 million e-invoices issued as of 13 February.
Deputy Finance Minister Lim Hui Ying said that among them, more than 11,600 taxpayers under Phase 2 have used the system. Meanwhile, Phase 3, which is set to begin on July 1, 2025, has already seen 7,700 voluntary participants.
“The government is confident that this system is effective in reducing tax leakage to an optimum level for the good of the nation,” she said during the opening ceremony of Menara Hasil LHDN (Inland Revenue Board) in Teluk Intan today. The event was officiated by the Sultan of Perak, Sultan Nazrin Shah.
Also present were Perak Menteri Besar Datuk Seri Saarani Mohamad and LHDN chief executive officer Datuk Dr Abu Tariq Jamaluddin.
Lim noted that the Finance Ministry, under the MADANI Government, remains committed to strengthening the economy through efficient and sustainable tax governance.
According to her, the shadow economy has long been a major contributor to tax revenue leakage, with estimates placing its size at around 21% of Malaysia’s gross domestic product.
“One of the efforts to combat this shadow economy virus, which has spread across the country in various industries, is the introduction of the e-invoice, which was announced by the government in the 2023 Pre-Budget Statement on June 3, 2022, and has been rolled out in phases starting from Aug 1, 2024,” she said.
An e-invoice serves as a digital representation of a transaction between the supplier and buyer, detailing key information such as item descriptions, quantity, price, total amount due, and applicable taxes.
All taxpayers conducting commercial activities in Malaysia are required to issue e-invoices, with implementation phases structured based on annual turnover or revenue thresholds.
