E-Invoicing? ✖
Webnacc

Adapting to E-Invoicing:
Overcoming Legacy POS System Challenges

POS System for E-Invoicing

POS System for E-Invoicing

The Digital Divide: Non-Digital POS Systems

Many small and medium-sized enterprises still rely on traditional cash registers or older POS systems that lack e-invoicing capabilities. These systems may not generate electronic invoices in the required format (such as XML or Json), making compliance with e-invoicing mandates a daunting task.

Solution:

  • Manual Data Entry: While not ideal, businesses can manually transcribe invoice details from their non-digital POS systems into e-invoicing software. This process is time-consuming and error-prone, but it’s a temporary workaround.
  • Upgrade or Replace: Consider upgrading your POS system or investing in a new one that supports e-invoicing. Modern POS solutions often integrate seamlessly with accounting software, simplifying the invoicing process.

Accounting Software for E-Invoicing

Legacy Software Compatibility

Even if your business uses accounting software, older versions might lack e-invoicing features. Upgrading to the latest version can be costly and disruptive.

Solution:

  • Software Updates: Check if your existing accounting software provider offers updates or patches to enable e-invoicing. Some vendors release add-ons specifically for e-invoicing compliance.
  • Third-Party Integrations: Explore third-party e-invoicing solutions that integrate with your current software. These bridge the gap between legacy systems and modern requirements.

Support and Initiatives

As of Budget 2024, there are several measures aimed at assisting businesses, especially SMEs, in adopting e-invoicing:

  1. Tax Deduction for E-Invoice Implementation:

    • The Malaysian government offers tax incentives to businesses. Specifically, there’s a tax deduction of up to RM50,000 for each year of assessment. This deduction applies to environmental, social, and governance-related expenditures, including consultation fees related to the implementation of e-invoicing.

  2. Mandatory E-Invoicing Implementation:

    • Starting in 2024, e-invoicing is being implemented in stages. All taxpayers are required to adopt e-invoicing. The rollout is based on annual turnover or revenue thresholds as stated in the financial statements for the Financial Year 2022.
    • This phased approach ensures a smoother transition for businesses.

  3. Grants for SMEs:

    • To further facilitate the adoption of e-invoicing, grants are available for SMEs.
    • The MSEM (Matching Grant for SMEs) allows businesses to claim up to RM5,000. To be eligible, SMEs can subscribe to e-invoicing software provided by authorized vendors.

  4. Upskilling and E-Commerce Participation:

    • The government has allocated RM1.6 billion to HRD Corp for upskilling programs. These programs equip SMEs with digital skills, including those relevant to e-invoicing.
    • Additionally, RM40 million has been allocated to encourage SME participation in Shop Malaysia Online, aiming to boost e-commerce adoption.

Note: Regulations may have evolved since our last update. Always consult official sources or legal advisors for the most up-to-date information.

Disclaimer: The information provided in this article is for general guidance purposes only. While we strive to keep the content accurate and up-to-date, it should not be considered professional advice or a substitute for legal, financial, or accounting consultation. Readers are encouraged to consult with qualified professionals regarding specific regulations, compliance requirements, and best practices applicable to their individual circumstances. The author and publisher disclaim any liability arising from reliance on the information presented herein.

© 2008-2024 – Webnacc Business Solution Sdn Bhd