E-Invoicing Will Have Significant Impact On Car Sales - TA Securities

While the implementation of e-invoicing has a limited impact on automotive companies with an in-house vehicle financing arm, TA Securities predicts that it will have a significant impact on car sales when it becomes mandatory for all taxpayers, regardless of their annual turnover or revenue.
"The new system is expected to pose challenges for buyers who may find it difficult to secure the 'full loan' amounts previously offered by certain sales agents," it says in a note. In May 2023, the Malaysian Inland Revenue Board (LHDN) announced that it would implement e-Invoicing in stages, with the first phase beginning on August 1, 2024, to promote automation and accuracy, as e-Invoicing can reduce errors or omissions in information that can occur with manual invoicing.

E-Invoices are structured digital representations of transactions between buyers and sellers. LHDN provides two e-Invoice transmission mechanisms: the MyInvois portal and/or the application programming interface (API).
The first phase, which kicked off on Aug 1, involves around 3,500 companies with annual revenues of more than RM100 million, while phase 2 is set to begin in January next year for companies with annual revenues of between RM25 million and RM100 million.