The Inland Revenue Board (LHDN) has announced that the government has agreed to give a 6-month grace period to taxpayers from the date of mandatory implementation of e-invoicing which starts on 1 August. Its CEO, Datuk Abu Tariq Jamaluddin said that the grace period is to ensure the smooth implementation of the system.
He was quoted by Bernama as saying that through the grace period, LHDN allows all activities or industries to only issue consolidated e-Invoices. Abu Tariq added that LHDB allows any transaction description to be entered in the "Product or Service Description" field, and if there is an e-Invoice request from the buyer, the seller is also allowed to only issue a consolidated e-Invoice without issuing an e-Invoice for each transaction.
The LHDN CEO said that during the 7 months, there would be no prosecution action under Section 120 of the Income Tax Act 1967 against non-compliance with the e-Invoicing rules provided that the taxpayer has complied with the consolidated e-Invoicing requirements. This grace period is expected to give taxpayers enough time to ensure the full implementation of e-Invoicing which is more effective.
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