A review of e-invoice records by the Inland Revenue Board (LHDN) has led 52,540 taxpayers to voluntarily declare previously unreported income totalling RM4.07 billion, with tax payable amounting to RM1.009 billion.
LHDN’s E-Invoice Analytics
Since e-invoicing was introduced on 1 August 2024, more than 230,000 taxpayers have adopted the system, generating over 1.5 billion e-invoices. LHDN’s analytics model cross-checks this transaction data against existing tax records to identify unusual patterns, including high-value purchases above RM100,000, vehicle and asset acquisitions, and active online transactions that do not match a taxpayer’s declared income.
The 52,540 taxpayers came forward and declared the income after being identified through LHDN’s review. Earlier this year, a similar exercise led 38,906 taxpayers to declare RM3.5 billion in previously unreported income.
Common Compliance Mistakes
Since 1 January 2026, taxpayers are required to issue an e-invoice for any sale of goods or provision of services exceeding RM10,000, with buyers also required to provide their identification number or Tax Identification Number (TIN). For business owners, freelancers, and individuals earning non-employment income, this means transactions above RM10,000 now leave a digital trail that LHDN can match against declared income.
Because of this, LHDN has highlighted several recurring compliance issues. Some taxpayers are issuing e-invoices for certain transactions but not others, while others are submitting consolidated e-invoices outside the permitted timeframe or issuing e-invoices that do not meet the e-Invoice Guidelines. LHDN has warned that enforcement action will be taken against non-compliant taxpayers.
What To Do If You Have Undeclared Income
Taxpayers with undeclared income, missing e-invoices, or records that may not accurately reflect their business activities should review their filings and rectify any issues as soon as possible.
If you need assistance, contact the e-Invoice Helpdesk at 03-8682 8000 (available 24 hours), MyInvois Live Chat, email at myinvois@hasil.gov.my, or the MyInvois Customer Feedback Form.
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