Review on benefits and challenges of E-Invoicing in Malaysia

Majid Khan Majahar Ali, Charanjeet Kaur Amtar Singh

Abstract


The emergence of digitalization has altered corporate procedures and affected day-to-day operations. The term "digitalization" in accounting describes the process of transforming accounting practices by utilizing technologies like cloud computing, blockchain, and artificial intelligence (AI). For companies of all sizes, electronic invoicing is a digital process for creating, sending, receiving, and processing invoices which is essential to increasing productivity and cutting expenses. The authority is currently preparing a tax reform to progressively to implement electronic invoicing (E-Invoicing), starting in August 2024, in order to advance Malaysia's tax system. The business must be prepared for the adoption of electronic invoices to ensure the development of E-Invoicing and ensure its success. Determining the benefits and challenges of e-invoicing in Malaysia is the aim of this study. In this paper, a substance review is conducted using existing studies and the main gap is identified. This study thoroughly examines the impacts of electronic invoicing, as well as its benefits and challenges, regulatory frameworks, and technological advancements. E-invoicing offers efficiency, cost savings, and environmental benefits, but faces system integration, security, and compliance issues. Future growth depends on regulatory changes and technological innovations like blockchain and artificial intelligence (AI) in Malaysia.


Keywords


e-invoicing, taxation, technology

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References


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