4 days ago
- Business
- New Straits Times
Government estimates 4pct of MSMEs to be involved in e-invoicing
KUALA LUMPUR: The government estimates that four per cent of micro, small and medium enterprises (MSMEs) will be involved in the implementation of e-invoicing when mandatory compliance begins on July 1, 2025.
Entrepreneur Development and Cooperatives Minister, Datuk Ewon Benedick, said the projection is based on the current progress of e-invoicing, which, as of July 31, recorded 417 million e-invoices issued by 84,000 taxpayers, including MSMEs.
In 2024, Malaysia recorded 1.08 million MSMEs, comprising 761,897 microenterprises (70.1 per cent), 306,764 small enterprises (28.2 per cent), and 17,725 medium enterprises (1.6 per cent).
He was responding to a question from Datuk Ahmad Amzad Mohamed @ Hashim (PN–Kuala Terengganu) in the Dewan Rakyat today on the percentage of entrepreneurs expected to be involved in e-invoicing.
Ewon said the government is aware of MSMEs' concerns about compliance costs, including the need to invest in accounting software, staff training, and the risk of penalties for non-compliance.
In this regard, the annual sales value threshold for e-invoice exemption has been raised to RM500,000, while the Inland Revenue Board (IRB) will continue its briefing programmes to raise awareness and understanding among entrepreneurs.
"IRB has also assured that the e-invoice system provided by the agency is free if used directly by taxpayers," he added.
