KUALA LUMPUR: The government's decision to permanently exempt small and medium enterprises (SMEs) from mandatory e-invoicing requirements is a "huge relief" for the small traders, the Small and Medium Enterprises Association of Malaysia (Samenta) said.
The association praised the move, particularly the permanent exemption for micro-enterprises, the extended implementation timeline for SMEs, and the temporary waiver of liquefied petroleum gas (LPG) permit requirements for small food and beverage (F&B) traders.
Its national president, Datuk William Ng, said the exemptions are not only timely but also reflect an understanding of the real challenges faced by small businesses on the ground.
"We have provided input on both issues, and we are grateful that the government has shown genuine care and support for our most vulnerable enterprises," he said in a statement.
The government has permanently exempted businesses earning below RM500,000 annually from the e-invoicing mandate.
Ng said the exemption spares the smallest traders, hawkers and family-run shops, many operating without digital infrastructure, from compliance burdens that could have forced them to shut down or operate informally.
Meanwhile, the postponement of e-invoicing requirements for businesses earning below RM5 million to Jan 1 next year provides SMEs the breathing space they need to prepare, upskill and adapt.
Ng noted that the LPG permit temporary waiver, although a small administrative change, has significant implications for business continuity and the cost of living.
He said the government's proactive stance has averted what could have become a national
micro-business crisis.
Under the earlier implementation schedule, businesses with annual revenues between RM500,000 and RM25 million were required to adopt e-invoicing by July 1, 2025, while those earning below RM500,000 were slated to comply by January 1, 2026.
The Inland Revenue Board (LHDN), in a recent statement, said the revised decision was made in recognition of the commitments faced by Micro, Small, and Medium Enterprises (MSMEs) in complying with e-invoicing regulations that need sufficient time and face various implementation challenges.