Kuala lumpur: The implementation of the e-invoice system in Malaysia has shown encouraging performance with more than 820.5 million e-invoices issued as of today, involving the participation of more than 111,600 taxpayers nationwide.

According to BERNAMA News Agency, Inland Revenue Board (IRB) chief executive officer Datuk Dr Abu Tariq Jamaluddin stated that participation not only included taxpayers from the first to third phases who implemented e-invoices mandatorily, but also involved taxpayers from the fourth phase who participated voluntarily. He highlighted that the compliance rate for phases one and two exceeded 90 percent, while phase three, still ongoing until December 2025, has already surpassed 80 percent compliance.

The government previously introduced the implementation of e-invoices in stages to improve the efficiency of the country's tax administration management in an effort to support the growth of the digital economy. E-invoices have also been introduced in several other countries since 2001, including Chile, Brazil, Mexico, Denmark, Italy, France, and Saudi Arabia.

Abu Tariq commented on the challenges within the e-invoice implementation, noting issues such as data inaccuracy. The disruption primarily arises when taxpayers do not obtain accurate data, such as the correct tax identification number (TIN), leading to e-invoice rejections. He emphasized the importance of enabling taxpayers to verify TIN numbers through the IRB to avoid such rejections.

The fourth phase of e-invoices, set to begin on January 1, targets taxpayers with annual income or sales of up to RM5 million. On December 6, Prime Minister Datuk Seri Anwar Ibrahim announced the government's decision to increase the e-invoice exemption threshold to RM1 million from RM500,000, starting next year, as a measure to alleviate the burden on small and medium enterprises.