KUALA LUMPUR — The implementation of e-Invoicing has strengthened tax compliance, with 52,540 taxpayers coming forward to declare a total income of RM4.07 billion.
The Inland Revenue Board (IRB) said that since e-Invoicing was introduced on August 1, 2024, more than 230,000 taxpayers have submitted e-Invoices, resulting in the issuance of 1.505 billion e-Invoices in total.
“This development reflects taxpayers’ support and readiness to enhance digitalisation in their business operations,” Bernama reported.
In line with the principle of transparency in the national tax system, the IRB said all taxpayers are required to issue e-Invoices for every transaction involving the sale of goods or provision of services exceeding RM10,000 beginning Jan 1, 2026.
For this purpose, buyers must provide their identification number or Tax Identification Number (TIN) to sellers to enable accurate issuance of e-Invoices.
According to the IRB, it has developed an analytics model to identify anomalies, suspicious transactions and unusual behavioural patterns for enforcement purposes.
“This initiative has proven effective, enabling the IRB to conduct more effective risk assessments, thereby enhancing voluntary tax compliance and contributing to increased national revenue collection,” the statement said.
Based on the analysis, the IRB identified taxpayers whose active financial transaction patterns did not correspond with existing tax records. These included high-value purchases exceeding RM100,000, vehicle and asset acquisitions, as well as active online transaction activities without proper income reporting records.
The IRB remains committed to intensifying its “nudging” approach and data-driven compliance efforts based on e-Invoice information to raise awareness and provide taxpayers with opportunities to make corrections and voluntarily submit tax information before any further action is taken.
“Through this approach, 52,540 taxpayers have come forward to submit Income Tax Return Forms (ITRFs) for prior years of assessment, involving total income of RM4.07 billion and tax payable amounting to RM1.009 billion,” it said.
The IRB also said that continuous monitoring has found that some taxpayers are still failing to comply with e-Invoicing requirements.
Among the common errors identified were inconsistent issuance of e-Invoices, including situations where e-Invoices were issued for only some transactions while subsequent transactions were not invoiced.
Other errors included submitting consolidated e-Invoices after the permitted timeframe and failing to issue e-Invoices for transactions involving the sale of goods or provision of services exceeding RM10,000 from Jan 1, 2026.
In this regard, the IRB advised all taxpayers to ensure that e-Invoices are issued fully in accordance with the prevailing regulations.
Taxpayers who have yet to issue e-Invoices for previous transactions should take immediate voluntary corrective action.
“Enforcement and legal action will be taken to ensure a high level of compliance and to safeguard fairness within the national tax system,” the statement said. – June 20, 2026