LHDN to use e-invoice data to pre-fill tax relief forms

KUALA LUMPUR - The Inland Revenue Board (LHDN) is strengthening the use of e-Invoice data to pre-fill individual tax relief information in the e-Filing system.

LHDN E-Invoice Division (Tax Operations) principal assistant director, Jihan Zahiah Johari, said the initiative will automatically display purchase data for eligible tax relief expenses in the income tax return form, based on e-Invoice records obtained from sellers.

She said the initiative forms part of national tax digitalisation efforts aimed at improving tax reporting accuracy and easing the management of expenditure records for taxpayers.

"Under the e-Invoice system, taxpayers will no longer need to look for receipts or supporting documents during e-Filing, as transaction records can be accessed through the MyInvois Portal for up to two years after validation.

"The MyInvois Portal is a one-stop platform for storing expenditure documents digitally, making it easier and more systematic for users to access purchase details,” she said in an interview on Bernama Radio’s Klinik Cukai programme today.

Jihan Zahiah said LHDN had announced that e-Invoice data would be used to pre-fill eligible individual tax relief information.

"For instance, the purchase of a laptop under the lifestyle tax relief category will be recorded under a specific item classification code in the e-Invoice system and subsequently displayed automatically in the e-Filing system when taxpayers submit their income declarations,” she said.

She said obtaining an e-Invoice is a simple process, in which buyers only need to inform the seller of their request and provide details such as their name, Tax Identification Number (TIN), identity card number, address, email address, and telephone number.

She said consumers are encouraged to verify their details and request e-Invoices immediately after transactions to avoid issues, noting that sellers must submit consolidated e-Invoices to LHDN if no request is received within the prescribed time.

"Sellers must ensure that each transaction is assigned the correct classification code to enable the data to be used in supporting future initiatives on the pre-filling of individual tax relief information,” she said.

Jihan Zahiah said taxpayers can download a buyer QR code through the MyInvois Portal, enabling faster, more accurate sharing of buyer details when the seller’s point-of-sale (POS) system supports the feature.

However, she emphasised that pre-filled information is not a final claim, and taxpayers are responsible for ensuring only eligible reliefs are claimed, with the option to make amendments if there are discrepancies or incomplete details before filing their tax returns.

She said that data storage in the MyInvois Portal does not exempt taxpayers from retaining supporting records and documents for seven years in accordance with Section 82 of the Income Tax Act 1967.

"To support the e-Invoice rollout, the government has granted an interim period until Dec 31, 2027, for Phase 4 taxpayers who started implementing the system on Jan 1 this year,” she said.

Jihan Zahiah said the MyInvois ePOS system is offered free to small and medium enterprises with annual revenue or sales of up to RM5 million to ease e-Invoice issuance and day-to-day transaction management.

She encouraged the public to request e-Invoices for every purchase, especially for tax-relievable expenses, while urging traders to use the transition period to fast-track the digitalisation of their operations.

"The success of the e-Invoice implementation depends on cooperation between buyers and sellers, as every digital transaction recorded not only simplifies tax processes but also supports a more transparent, efficient and integrity-based tax system,” she added. - BERNAMA