TA Securities says e-invoicing will have a “significant impact on auto sales” when fully implemented
While the government predicts that the implementation Electronic invoice will have very small impact in terms of total industry volume (TIV) or vehicle sales in Malaysia, TA Securities said this may not be the case. In a research note published yesterday, the firm said the system’s implementation is expected to have a “significant impact on car sales” when fully integrated, as Edge report.
“This is a mandatory time for all taxpayers, regardless of their annual turnover or revenue, according to our auto analyst. [to adapt to e-invoicing]. This new system is expected to pose challenges for buyers as they may find it difficult to secure the ‘full loan’ amounts previously offered by some sales agents,” the report said.
Currently, the first phase of the system, which started on Aug 1, covers about 3,500 companies with annual revenue of over RM100 million, with the government giving taxpayers a six-month grace period to ensure a smooth rollout. It has been previously pointed out that most car dealerships do not earn revenue exceeding that amount, so the current impact is negligible.
The second phase is expected to start in January next year and will apply to companies with annual turnover between RM25 million and RM100 million. By July 1, 2025, all other taxpayers will use e-Invoicing, except those with annual turnover below RM150,000.
When this happens, cases of “full loans” or “inflated” invoices will end, potentially affecting people who buy cars that way, although how much of an impact it will have on sales figures is still unknown.
“For the automotive industry, this means a more transparent purchasing process where inflated invoicing practices are curbed, potentially impacting how car sales are conducted and financed,” the company said. However, it added that e-invoicing would have limited impact on automotive companies with in-house vehicle finance departments.
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