Is your company ready for E-invoicing?

China Press: E-Invoicing Press Release

Chinapress Seminar

Kuantan, 21st May – With the e-Invoicing system set to be mandatory from August this year, both large and small enterprises face at least six months of preparation, adjustment, operation, and familiarisation, in addition to overcoming potential system security vulnerabilities.

The E-Commerce and Multimedia Division of Kuantan Chinese Chamber of Commerce & Industry (KCCCI), the Real Estate and Housing Developers’ Association (REHDA) Pahang, and IFCA Software jointly organised the “Navigating E-Invoicing Compliance” seminar today. Experts including Lim Ai Chen, a partner at the accounting firm PKF Malaysia; Yong Siew Woon,Vice President of IFCA Software; Wan Jun Fai, Client Manager of IFCA Software; and Kevin Lim, Vice President of Infra365 Sdn Bhd, briefed nearly 200 representatives of SMEs on the preparations and potential pitfalls of implementing the e-Invoicing system.

Chinapress Seminar

Photo Caption: Nearly 200 business representatives attended the “Navigating E-Invoicing Compliance” seminar. In the front row, from left: Danny Soon Woon Fu (KCCCI), Lim Ai Chen (PKF), Yong Teck Hui (PKF), Yong Siew Woon (IFCA) and others.

Lim Ai Chen reminded business owners that they could be held legally responsible for failure to implement e-Invoicing on time or due to other non-compliance issues. Penalties include fines ranging from RM 200 to RM 20,000, imprisonment for up to six months, or both.

“Businesses need a comprehensive understanding of the e-Invoicing system, with specific preparations and adjustments for individual operations. Developing more complex systems that meet the needs of a wider range of products, as well as arranging for staff to familiarise themselves with the system requires no less than six months.”

She noted that the e-Invoicing system differs from Sales and Services Tax (SST) or Goods and Services Tax (GST) in its broader scope and numerous details. Any online data input will impact the cash flow which can be tracked in real-time, making transaction data more transparent.

“Thus, it is crucial to first understand the distinctions in e-Invoicing submissions, increase familiarity with system operations and secure handling. The basic system package, including training and guidelines, is expected to cost between RM 10,000 and RM 15,000.”

She also mentioned that specific industries such as manufacturing, trade and services, construction, real estate development, and hospitality must implement e-Invoicing to qualify for tax-deductible goods and services, using e-Invoices as proof. Otherwise, they will not enjoy certain tax reliefs.

Ai Chen

Photo Caption: Lim Ai Chen reminded companies to take the strict compliance on e-Invoicing seriously to avoid penalties.

Yong Siew Woon, Vice President of IFCA Software, stated that the e-Invoicing system must be “tailored” to suit the company’s operation scale, business scope, and number of registered users. Hence, it takes longer to develop and programme.

Kevin Lim raised concerns that the e-Invoicing system requires long-term connection to the Inland Revenue Board (LHDN) to read and verify transaction data, posing potential cybersecurity risks and the threat of commercial secrets or sensitive data being exposed to cyberattacks. Thus, constructing a secure network and system is a crucial aspect that cannot be overlooked.

Danny Soon Woon Fu, Director of E-Commerce and Multimedia Division, KCCCI, mentioned that following the positive response to this English-language seminar on e-Invoicing, the Chamber plans to organise a Chinese-language seminar in July to help more local SMEs clarify implementation details.

Other attendees included Pang Kwei Seen, Chairman of REHDA Pahang; and Yong Teck Hui, Senior Tax Manager at PKF Malaysia.