SHAH ALAM, 20 July — The implementation of the e-Invoice system has enabled the Inland Revenue Board (LHDN) to carry out more effective risk assessments, strengthening the government's efforts to curb tax leakages while contributing to higher national tax revenue.
Berita Harian reported that Treasury Secretary-General Tan Sri Johan Mahmood Merican said that since the rollout of e-Invoice in August 2024, over 52,540 taxpayers have voluntarily declared an additional RM4.07 billion in taxable income, resulting in RM1.009 billion in additional tax payable.
He emphasised that e-Invoice is not intended to burden businesses or impose new taxes, but rather to provide the government with transaction data that can be used for tax analysis and compliance purposes.
"In line with the principle of transparency in the country's taxation system, beginning January 1, this year, all taxpayers are required to issue an e-Invoice for every transaction involving the sale of goods or the provision of services exceeding RM10,000.
"Therefore, buyers are required to provide their identification number or Tax Identification Number to the seller to enable the e-Invoice to be issued with the buyer's correct information.
"If checks find that they are not registered or there is a possibility that income has not been reported, LHDN will contact them to obtain an explanation," Johan said.
He added that the approach is not aimed at immediate enforcement action. Instead, LHDN initially sends letters to the individuals concerned, allowing them to review and update their income declarations where necessary.
"Based on the implementation of e-Invoice so far, when we obtain the data and carry out our analysis, we have found that there are individuals or businesses actively making purchases but who are not registered or are not reporting their income accordingly to LHDN.
"Following that, HASiL contacts them to obtain an explanation as to whether there are sources of income that have not been declared. As a result, more than 52,540 taxpayers have voluntarily reported additional tax payable amounting to approximately RM1 billion.
"That is the outcome of the implementation of the e-Invoice initiative," Johan said, noting that the government understands the e-Invoice system is still new and businesses need time to adapt to its implementation.
To further assist taxpayers in meeting compliance requirements, the government has also introduced the e-Invoice Special Voluntary Disclosure Programme.
"It allows businesses to correct or complete their e-Invoice records until December 31, 2027, without being subject to penalties," he said.
Similarly, the government has agreed to accelerate the processing of full capital allowance claims within one year for expenditure on computers, software, and systems required for e-Invoice implementation to help reduce compliance costs.
Johan said the use of e-Invoice data is also expected to gradually strengthen the government's efforts to combat the shadow economy and improve tax compliance, without placing additional burdens on businesses that comply with tax regulations.
