KUALA LUMPUR: The Inland Revenue Board (IRB) has and is examining several proposed solutions to make it easier for micro, small and medium enterprises (MSMEs) to carry out transactions through the e-Invoice system, said Deputy Finance Minister Lim Hui Ying (pix).
She said the IRB also upgraded the features of the MyTax and MyInvois portals to ensure the implementation of e-Invoice is easier for MSMEs and also to encourage them to adopt digital payment platforms.
“Engagement sessions with the ministry will be intensified to ensure that internet and access issues can be overcome.
“Collaboration with industry and agencies in ensuring communication and e-invoicing training programmes for SMEs is one of the steps that will be taken,” she said during a question and answer session at the Dewan Negara today.
Lim was responding to an additional question from Senator Tan Sri Low Kian Chuan who wanted to know about the challenges faced by MSMEs to implement the e-Invoice system despite the government having provided incentives to facilitate the process.
The deputy minister said that during previous engagement sessions with industry players and professional bodies, the IRB had received various feedback and inputs, particularly regarding the challenges faced by various parties including MSMEs.
Lim said that MSMEs had voiced concerns about the burden and cost of operations, the application of technology and gaps in readiness, among others.
Meanwhile, she said the government will implement the use of e-Invoice in stages from August 2024 based on the threshold value of business sales revenue.
Lim explained that the implementation of e-Invoice is a new approach to increase the level of tax compliance while benefiting the government, tax administrators and businesses from the aspect of improving business efficiency, dealing with the shadow economy and curbing leakages to the national tax revenue.
“The government is aware that the process for companies to adapt to e-Invoice will take time. Therefore, its implementation will be done in phases.
“The first phase will start in August 2024 involving large companies with annual turnover exceeding RM100 million. The second phase will start in January 2025 and involves companies with an annual turnover of RM25 million to RM100 million,” she said.
Lim said that the MyInvois portal is being developed to be accessed by all businesses for free from August 1, 2024.
“In May 2024, the IRB will carry out a pilot project involving selected companies representing various industries in preparation for a smoother widespread implementation.
“The MyInvois system will give priority to confidentiality, integrity and availability of data through strict data protection measures,” she said.
Lim assured that the government will give priority to ensuring that the data in the MyInvois system is always secured through compliance with the information and communications technology security policies, the IRB and the general circular of information management guidelines through computerisation, among others. -Bernama
