On 26 July 2024, the Inland Revenue Board of Malaysia (IRBM) released a media statement titled "Flexibility to Submit Consolidated e-Invoices during the Initial Period of Implementation of e-Invoices." The announcement introduces a 6-month grace period, effective from 1 August 2024, which includes the following provisions:

Allowances for Taxpayers:

• All industries and activities can issue consolidated e-invoices, including self-billed e-invoices.
• Any transaction description can be entered in the "Product or Service Description" field.
• If a buyer requests an e-invoice, the seller can issue a consolidated e-invoice instead of individual e-invoices for each transaction.

Penalty Exemption:

• Penalties under Section 120 of the Income Tax Act 1967 for non-compliance with e-invoicing rules will not be enforced, provided taxpayers adhere to the consolidated e-invoicing requirements.

Additional Benefit:

• Taxpayers who adopt e-invoicing within the stipulated timeline, without availing of the grace period, will benefit from a reduced capital allowance claim period for ICT equipment and software packages from 3 years to 2 years, applicable from the 2024 to 2025 assessment years.