Malaysia’s e-invoice system sees over 820.5 million invoices issued, with compliance exceeding 90% for early phases and an increased exemption threshold
CYBERJAYA: The implementation of Malaysia’s e-invoice system has shown encouraging performance with over 820.5 million e-invoices issued to date.
Inland Revenue Board (IRB) chief executive officer Datuk Dr Abu Tariq Jamaluddin said this involves the participation of more than 111,600 taxpayers nationwide.
The participation includes taxpayers from the first three mandatory phases and those from the fourth phase who joined voluntarily.
“These statistics illustrate that the implementation of e-invoices is generally very well received among businesses in Malaysia,” he said at a press conference.
He reported that compliance for phases one and two is over 90%.
Compliance for phase three, which ends in December 2025, has also exceeded 80%.
The government introduced e-invoices in stages to improve tax administration efficiency and support digital economy growth.
Abu Tariq acknowledged challenges in implementation, including data inaccuracy.
“Among the main causes… is the disruption in the delivery of e-Invoices, especially when taxpayers do not obtain accurate data such as the correct TIN,” he said.
This situation causes e-invoices to be rejected at the initial stage.
One effort to address this is enabling taxpayers to verify correct TIN numbers through the IRB.
The fourth phase of e-invoices begins on January 1, involving taxpayers with annual income or sales up to RM5 million.
On December 6, Prime Minister Datuk Seri Anwar Ibrahim announced an increase to the e-invoice exemption threshold.
The threshold will rise to RM1 million from RM500,000 starting next year to reduce the burden on small and medium enterprises.
