1.0 Introduction
The revenue of micro business, trader stalls in restaurant or food court, street or market place be it in morning, night or late night would be completely revealed with transparency. These businesses would be severely impacted by the complete working of e-Invoicing mechanism as non-reporting, low reporting or late reporting of revenue is now at risk.
IRB is empowered to recover tax lost retrospectively on all previous years, making all hidden fortune is to be taxed now with 100% penalty on tax undercharged.
2.0 Digital economy
Malaysia transforming into digitalisation contributes to business transparency and accessibility. In tax audit, IRB would reconcile the e-banking account of business, validated e-Invoice and consolidated e-Invoice with revenue reported in tax return. Any unexplained excess is prima facie to income unreported.
With e-Invoicing implementation in the final phase of 1.7.2025, revenue reporting to IRB would be mandatory in real time on monthly basis with the submission of consolidated e-Invoice.
3.0 Common business features
Currently, the business operation by micro business and trader stalls would be on cash basis dealing with individual consumers on food and beverages, consumable household items, personal grooming, household repairs and expenses alike.
In e-Invoicing mechanism taking effect 1.7.2025, these business operators would need to record daily receipts and cumulatively the aggregate sum on monthly basis.
On the 7th of the following month, a consolidated e-Invoice recording the previous month receipts need to be accounted to IRB via the MyInvois portal, which is available with no fee charges. The revenue reported would be real time at monthly basis.
4.0 Tax Revolution
Currently, the micro business, trader stalls would be at their discretion to report or even not report their revenue to IRB. This is no longer an option or even discretion with e-Invoicing working mechanism.
Trader is now mandatory to account to IRB on monthly revenue with the lodgement of consolidated e-Invoice via IRB MyInvois portal. These would form the basis of revenue in the computation of tax in the tax return (Form B) submission on 15.7 of the following year.
The employment of casual workers, part time wages need now to be accompanied by self-billed e-Invoice in order be eligible for business deduction.
5.0 Self-billed e-Invoice content
Self-billed e-Invoice must have the following particulars:
6.0 Conclusion
Micro business, trader need to honestly review its tax status now urgently to voluntary disclose unreported income via SVDP 2.0 so not to complicate on penalty on tax evasion upon the arriving of e-Invoicing era.
