E-Invoice Expansion to Sabah
E-invoice implementation will soon to be available in Sabah.
The Inland Revenue Board of Malaysia (IRBM) has taken a significant step in its digital transformation journey by expanding the implementation of e-invoicing to Sabah. This move is a continuous effort to strengthen the government’s national agenda to modernize tax administration and support the digital economy across the country.
E-Invoice Initiative in Sabah
The e-invoicing system is designed to streamline the invoicing process, making it more efficient and transparent. By transitioning to e-invoices, businesses can expect reduced paperwork, fewer errors, and improved compliance with tax regulations. The IRBM's Chief Executive Officer, Datuk Dr. Abu Tariq Jamaluddin, emphasized the importance of this transition and acknowledged the challenges it poses, stating that all parties to work together with LHDN so that the government’s aim to build a dynamic economic environment and business digitalization evolution is achieved, especially for small and medium enterprises (SMEs) in Sabah.
Sabah E-invoice Seminar
To facilitate this transition, the IRBM is committed to provide technical assistance and guidance to local businesses. A seminar was held on August 8 in Kota Kinabalu with the support of the Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI) and the Federation of Chinese Associations Sabah (FCAS). The event attracted nearly 1,500 participants, including tax practitioners and entrepreneurs. Its goal is to foster open communication between the IRBM and industry players, ensuring that feedback and suggestions are incorporated into the implementation process.
Sabah Concern
Despite the positive outlook, e-invoice implementation in Sabah has been controversial for quite some time. There are a significant number of small businesses, particularly rural villagers and the elderly, who are not only unfamiliar with but also lack access to internet connectivity and technological access. This is a serious concern when introducing an e-invoicing system in a region that is technologically underdeveloped. Thankfully, it is announced that MSMEs with an annual turnover of less than RM150,000 will not be required to issue e-invoices for now. While this helps to alleviate the problem, the government is still encouraging all businesses in Malaysia to participate in e-invoicing.
Conclusion
Phase 1 of e-invoicing in Malaysia is already underway, and the early stages of implementation have been met with numerous problems by many businesses, such as system errors and lack of guidance. The adoption of e-invoicing in Sabah may face even greater hurdles compared to other regions. However, the IRBM is committed to offer sufficient support to the region throughout this process. If Sabah successfully adopts the e-invoice system, it will pave the stage for a more efficient and transparent economic environment for Sabah, and aligns with global digitalization trends.
Sources:
https://www.theborneopost.com/2024/08/08/e-invoice-expanded-to-sabah/
https://www.thestar.com.my/news/nation/2024/07/06/sabah-not-ready-for-e-invoicing-says-warisan-man
How Goldsoft can help you:
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Option 1: Malaysia e-Invoice Ready ERP SolutionList Item 1
This solution direct integration of Goldsoft ERP with MyInvois System:
1. e-Invoices are generated in Goldsoft's ERP system and sent directly to the LHDN MyInvois System for validation. Once validated, embedded with a QR code containing the validation link, send to the client company.
2. This integration streamlines invoicing, reduces manual effort, minimizes errors, and ensures smoother transactions with the same vendor.
3. Client company is able to track and monitor e-invoice submissions, validation, and statuses in real-time.
4. Ideal for Malaysian retail and trading distribution companies needing e-invoice compliance system.
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Option 2: Malaysia e-Invoice Middleware Solution
This solution uses Goldsoft as middleware to connect client's existing software to the e-Invoicing network:
1. Clients can continue using their existing ERP/accounting system.
2. Enable client company to send e-invoices, using your existing ERP/accounting software, Goldsoft as a service provider to convert documents to standard specifications (XML/JSON) and send it to LHDN for validation. Once validated, embedded with a QR code containing the validation link, send to client company.
3. Client company is able to track and monitor e-invoice submissions, validations, and statuses in real-time.
4. Ideal for all Malaysian industries needing e-invoice compliance via API.
For more information about Goldsoft e-invoice Ready ERP/ e-invoice middleware, please do not hesitate to contact Goldsoft's sales team at 03-2732 8833 or fill up the form below for enquiry.
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