KPMG: E-invoicing will improve tax compliance, help govt address tax leakages

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KPMG: E-invoicing will improve tax compliance, help govt address tax leakages
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KUALA LUMPUR, April 3 — The introduction of an electronic invoicing (e-invoicing) system for businesses will improve tax compliance, said KPMG Tax Services Sdn Bhd. Its head of...

KUALA LUMPUR, April 3 — The introduction of an electronic invoicing system for businesses will improve tax compliance, said KPMG Tax Services Sdn Bhd.

“Observations out of Italy, which first mandated e-invoicing in 2014, found that its e-invoicing system detected undue value-added tax credits amounting to 1.1 billion euro while VAT payments increased by 3.6 per cent between 2018 and 2019. At the same time, the system would increase data transparency which gives tax authorities a higher level of confidence as invoices are issued in a standardised way, it said.

“This encompasses cybersecurity considerations and the necessary training of personnel to be tech savvy,” Soh said.

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