The Inland Revenue Board of Malaysia (HASIL) is implementing a comprehensive strategy to facilitate a smooth transition to e-invoicing for businesses of all sizes. This approach is designed to accommodate the varying levels of readiness among businesses, ensuring continuity and compliance during the transition. Here are the key points to understand about the transition to e-invoicing: 

1. Transitional Period  

During the transitional period before full e-invoice implementation, HASIL will accept both e-invoices and traditional invoices. This flexibility allows businesses to gradually adapt to the new system without disrupting their current operations. 

2. Compliance Obligation 

Responsibility for issuing e-invoices lies with the supplier or the buyer in cases of self-billed e-invoices. This clear delineation of responsibility ensures that all parties understand their roles in issuing e-invoices. 

3. Acceptance of Traditional Normal Invoices 

HASIL will continue to accept traditional bills, receipts, and invoices from suppliers who have not yet reached their mandatory implementation date. This provision helps businesses that are still in the process of upgrading their systems to the new e-invoicing systems. 

4. Flexibility for Buyers 

5. Duration  

This period of flexibility remains in place until the full implementation of e-invoicing across all businesses on 1 July 2025. It gives businesses some time for transition at their own pace while adhering to the upcoming mandatory requirements. 

6. No Penalties 

Suppliers who are not yet required to implement e-invoices will not face penalties for continuing to issue traditional invoices. This leniency is designed to support businesses as they transit. 

7. Gradual Transition 

HASIL’s approach allows for a smoother transition by recognizing that different businesses will implement e-invoicing at different times based on their size and readiness. This implementation in phases helps to prevent systemic disruptions and encourages gradual adaptation. 

Important Considerations 

Preparation for Full Implementation: 

All businesses should prepare for the eventual full implementation of e-invoicing, even if their mandatory compliance date is later. Proactive preparation will ensure a seamless transition when the deadline arrives. 

Record Keeping: 

Maintaining comprehensive records of all transactions, regardless of the invoice format, is crucial. This practice ensures that businesses can provide accurate and complete information during audits or reviews. 

Conclusion  

HASIL’s pragmatic approach during the transitional period is designed to ensure business continuity while moving towards full e-invoice adoption. By accepting traditional invoices from suppliers who have not yet reached their mandatory implementation date, HASIL is providing the necessary flexibility to support businesses during this transition. Nonetheless, businesses should take steps to prepare for eventual compliance with e-invoice requirements, aligning with HASIL’s long-term objectives and regulatory expectations.