Jul 24

E-Invoice Special Voluntary Disclosure Program (SVDP)

Effective Date: 7 July 2026

The Government has introduced the e-Invoice Special Voluntary Disclosure Program (SVDP), effective immediately until 31 December 2027. Announced by the Prime Minister on 7 July 2026, the programme allows businesses to voluntarily rectify e-Invoice non-compliance without penalties.

The SVDP recognises the practical challenges many organisations face during Malaysia's e-Invoice rollout. It provides a valuable opportunity to strengthen compliance before enforcement intensifies and should be viewed as a governance and risk management initiative rather than merely a tax concession.

Eligible Taxpayers

IRBM has confirmed the SVDP applies to businesses in three situations:
All voluntary disclosures must be complete, accurate and comply with IRBM's General and Specific Guidelines.

Why It Matters & The Cost of Waiting

Why It Matters

Although many organisations have implemented e-Invoicing, compliance gaps often remain due to:
These gaps may expose businesses to significant financial penalties once IRBM commences detailed compliance reviews.

The Cost of Waiting

The SVDP is particularly valuable because the cost of non-compliance can escalate quickly. Under Section 120 of the Income Tax Act 1967, failure to issue an e-Invoice, self-billed e-Invoice or consolidated e-Invoice carries penalties ranging from RM200 to RM20,000 per offence.

Each non-compliant transaction may constitute a separate offence, resulting in substantial cumulative exposure for high-volume businesses. Indicative compound rates shared by IRBM at the HASiL–CTIM Tax Forum 2026 include:
Where prosecution has commenced, compounds begin at RM500 and may reach RM20,000 per offence. IRBM's e-Invoice Compliance Review Framework (issued 15 December 2025) enables reviews covering up to two years of assessment, increasing the likelihood that historical gaps will be identified.

Next Steps & Opportunities

Government Incentive

Beyond penalty relief, taxpayers that fully comply with e-Invoicing may qualify for 100% capital allowance within one year on qualifying expenditure for:
This incentive reduces the cost of digital transformation while strengthening long-term compliance.

Recommended Actions

With the programme ending on 31 December 2027, organisations have a limited window to rectify historical non-compliance without penalties. Early action will:

Key Management Questions

Management should assess whether the organisation can confidently answer:
Any uncertainty should prompt a comprehensive compliance review under the SVDP.

Key Takeaways

Management should leverage the SVDP to conduct a structured e-Invoice health check — covering transaction reconciliation, data quality assessment, system validation, process review and governance enhancement — rather than merely correcting isolated errors.
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