KUCHING: Businesses in Sarawak are being urged to prepare for mandatory e-invoicing and the expansion of Sales and Services Tax (SST) requirements, with authorities assuring support for rural traders and small and medium enterprises (SMEs) facing infrastructure and connectivity challenges.
Inland Revenue Board’s (LHDN) e-Invoice Division director Dr Rasyidah Che Rosli said rural and remote areas in Sarawak face distinct obstacles, including limited internet access, inadequate infrastructure and logistical constraints, which affect readiness to adopt e-invoicing.
“Rural businesses face unique challenges, but the government is committed to supporting them. We are working closely with other agencies to make the most of existing facilities, such as the National Information Dissemination Centres (NADI) under the Malaysian Communications and Multimedia Commission (MCMC), which provide internet access, digital tools, and training for communities,” she said.
The matter was discussed at the E-Invoice Meets SST Revision and Expansion forum held during the 2026 Sarawak Budget Conference at the Borneo Convention Centre Kuching (BCCK) here today (Dec 17).
Panellists include Dr Rasyidah, Assistant Director General of Customs and Head of the Internal Tax Division Almirulita Mohd Yusoff, Finance Ministry Tax Division Under-Secretary Datuk John Patrick Antonysasmy, and Malaysian Institute of Accountants president Saniza Said.
NADI centres, she explained, serve as digital hubs in underserved areas, offering access to computers, Wi-Fi and community training programmes that can help traders implement e-invoicing and comply with new digital tax requirements.
Dr Rasyidah also detailed operational flexibility in the early stages of e-invoice rollout. Businesses can issue consolidated invoices where appropriate and are allowed a 72-hour window for resubmission in the event of system integration problems.
“These measures are designed to ensure that businesses can continue operations while transitioning to the new system,” she said.
While e-invoicing aims to simplify tax reporting, Almirulita warned that it does not automatically guarantee compliance with SST.
“E-invoicing captures most information required under SST, but fulfilling e-invoice requirements alone does not fulfil your SST obligations,” she said.
She cited Section 82C of the Income Tax Act 1967, which provides the legal basis for mandatory e-invoices, noting that businesses must ensure full compliance with SST rules as well.
Almirulita added that the Royal Malaysian Customs Department plans to adopt risk-based audits in the future, using data from e-invoices to target audits efficiently rather than conducting broad enforcement exercises.
The department is also upgrading its systems through the Customs Digital Network (CDN) to reduce duplicate reporting and improve compliance efficiency.
Meanwhile, John emphasised that tax policy is not static but evolves based on feedback and real-world implementation.
“Tax policy is designed to support both the economy and compliance. Feedback from taxpayers is essential to refine guidelines and address challenges on the ground,” he said.
John also highlighted the wider impact of tax revenue in funding infrastructure and development, including digital connectivity in rural Sarawak, noting that taxpayer contributions enable state development priorities to reach underserved communities.
Addressing the cost concerns of small businesses, Saniza urged Sarawak SMEs to view compliance with digital tax reforms as an investment rather than a burden.
“Many small practices still lack internal accounting expertise. Investing in proper systems, training and professional support is essential to future-proof your business,” she said.
She noted that while multiple reforms may arrive simultaneously, delaying adaptation could result in higher costs, risks and inefficiencies in the long run.
