PETALING JAYA: The government should educate and advise small and medium enterprises (SMEs) during the first year of the e-invoice implementation rather than penalising the businesses, said Small and Medium Enterprises Association of Malaysia (SAMENTA).
Its president, Datuk William Ng said the speed and ability for SMEs and businesses to incorporate e-invoicing in their business operations varies, depending on the nature of their business, thus, SMEs should not be penalised, especially in the first year of implementation.
“Some SMEs may be better prepared to implement e-invoicing, while others, for various reasons, may be slower or less prepared. Hence, we should only penalise them as a last resort.
“An honest mistake can happen and this can include clerical errors made by accounting staff or cashiers,” Ng told the media following a roundtable discussion on “Challenges and Opportunities for Malaysia’s SME and Retail Industry” here today.
According to the Inland Revenue Board (LHDN), full implementation of the e-invoice system for SMEs will begin on July 1, 2025.
The first phase of e-invoice begins on August 1, 2024, and is only applicable to companies with an annual turnover or revenue exceeding RM100 million.
LHDN said failure to issue e-invoices is an offence under the Income Tax Act 1967. The penalties for such offences range from a minimum of RM200 to a maximum of RM20,000, depending on the specifics of each case.
Additionally, the Digital Ministry announced today that it is prepared to assist SME traders and entrepreneurs in overcoming challenges related to the implementation of the e-invoice system.
Ng highlighted that SAMENTA does not support the idea of exempting or postponing e-invoicing for SMEs. He believes that once the implementation is fully enforced, SMEs will be able to adapt and utilise it effectively.
“Simply postponing the implementation for six months, a year, or even two years will not make businesses ready if they are not prepared,” Ng said.
Meanwhile, in a statement today, retail management software company Web Bytes Sdn Bhd said as inflation continues to escalate, Malaysian retailers are grappling with rising costs that threaten their profitability and sustainability.
It emphasised the critical role of technology in helping retailers navigate these economic challenges effectively.
Web Bytes chief executive officer Ooi Boon Sheng said data from its top 10 Xilnex retail merchants revealed that nearly 50 per cent of their customers now use e-wallets for payments.
“This shift to cashless transactions significantly reduced operational costs and minimised risks by cutting down on cash handling, thereby lowering potential losses from theft or errors.
“By leveraging real-time analytics, artificial intelligence (AI)-driven insights, and automation, we empower retailers to not only manage inflationary pressures but also drive sustainable growth and enhance customer experiences,” he said.
According to the statement, contactless payment systems, for example, have gained traction even among SME retailers seeking to enhance customer convenience and streamline transactions.
Web Bytes said e-invoice policies and Al-driven analytics offer retailers a better way to understand consumer behaviour, tailor their offerings, and optimise pricing strategies.
