KUALA LUMPUR, March 4 — DAP chairman Lim Guan Eng today called on the Inland Revenue Board (IRB) to clarify its e-invoicing requirement on non-business, non-profit, co-operatives or charitable organisations with annual donations or contributions of more than RM150,000.
He also questioned the rationale for IRB’s requirement that is imposed on such organisations.
“I have received complaints from these organisations that are registered under the Registrar of Societies or Cooperatives Societies Commission that they have been informed by IRB that they are required to comply with the e-invoicing’s requirements.
“Apparently IRB is requiring compliance due to the guideline that if a charitable organisation’s annual revenue (in this case donations received) is less than RM150,000, it is not required to issue e-invoice,” he said in a statement here.
Lim, who is also the Bagan MP, explained that the implementation of e-invoicing is mandatory under Section 82C of the Income Tax Act 1967 only for businesses with annual turnover or revenue of more than RM150,000.
“Section 120(1)(d) of the Act provides for a fine of not less than RM200 and not more than RM20,000 or imprisonment not exceeding six months or both, if a person fails to issue an e-invoice, a self-billed invoice or a consolidated transaction invoice.
“This increases both pressure and financial burden for these organisations to comply,” he said, adding that the public are currently appealing for an increase in the threshold to annual sales of RM500,000 in ann effort to align with the requirement to pay the SST.
The e-invoice system was introduced gradually in August last year, starting with businesses with an annual turnover or revenue of more than RM100 million.
IRB said the system will eventually be extended to all businesses by July 1.
The e-invoicing system allows taxpayers to issue consolidated self-billed e-invoices on top of consolidated e-invoices.
