Malaysia Offers E-Invoice Compliance Amnesty Until 2027
Malaysia has introduced a Special Voluntary Disclosure Programme (SVDP), giving businesses until 31st December 2027 to correct e-invoicing errors without financial penalties.
Announced by Prime Minister Anwar Ibrahim and supported by the Inland Revenue Board (IRBM), the programme allows taxpayers to voluntarily review, update and rectify e-invoice transactions submitted since their mandatory implementation date.
The programme applies to businesses that have:
- Failed to issue required e-invoices
- Submitted e-invoices containing errors
- Omitted transactions that should have been reported
- Failed to meet e-invoicing requirements after becoming subject to the mandate
Malaysia's phased rollout began in August 2024 with the country's largest taxpayers and has gradually expanded to smaller businesses. As the compliance net has widened, the government has acknowledged that some organisations require additional time to correct historical records.
Alongside the disclosure programme, Malaysia has also introduced a financial incentive for compliant businesses. Taxpayers can claim a 100% capital allowance within one year for qualifying expenditure on ICT equipment, computer software and software development costs relating to e-invoicing implementation.
The opportunity to correct mistakes without penalties closes on 31st December 2027, after which businesses should expect a more mature phase of enforcement.
This content is intended to share insights and practical considerations based on industry experience. It does not constitute legal, regulatory, or financial advice. Regulatory requirements vary by jurisdiction and circumstance, so any compliance-related matters should be reviewed and validated with your own professional advisors.
