KUALA LUMPUR (March 4): The Inland Revenue Board (IRB) has weeded out 66,000 e-commerce businesses which have neither paid nor filed their taxes for the income generated from their businesses, with the implementation of e-invoicing since Aug 1, 2024.

The IRB announced on Tuesday that it has identified 66,000 businesses that haven't complied with estimated tax payment requirements under the Income Tax Act, based on e-invoice submissions.

Checks also revealed no record of income tax return submissions from these businesses.

A total of four million e-Invoices have been issued by these 66,000 businesses.

IRB said in the statement that it actively monitors taxpayer data verified in the MyInvois system to ensure voluntary and continuous tax compliance.

As of March 3, 2025, a total of 196 million e-invoices have been issued by businesses, including voluntary participation from those not required to do so.

The IRB also informed in the statement that the grace period for first-phase taxpayers — businesses with annual sales exceeding RM100 million — to fully comply with e-invoicing guidelines ended on Jan 31, 2025.

Each phase of taxpayers is given a six-month grace period to fully comply with the mandatory e-invoicing guidelines.

During this period, businesses are allowed to issue consolidated e-invoices, including self-billed ones, among others.

Businesses with annual sales of more than RM25 million and up to RM100 million will need to comply by July 1, 2025, while those with annual sales between RM500,000 and RM25 million have until Jan 1, 2026.

The implementation of e-invoicing for micro, small, and medium enterprises (MSMEs) with annual sales of RM500,000 or less, has been pushed back to Jan 1, 2026, with full compliance by July 1, 2026.