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Pertubuhan Transformasi Dayak (TRADA) is urging the federal government to expand e-invoicing exemptions to include all Micro, Small, and Medium Enterprises (MSMEs), regardless of their operational mode. Many MSMEs in Sarawak rely on online platforms to access larger markets. Consequently, those in Peninsula Malaysia could face significant challenges if required to comply with e-invoicing regulations.

Joseph Janting, President of TRADA, questioned the inconsistency in e-invoicing policies, stating, “Given that traditional MSMEs with revenue below RM150,000 are already exempted from e-invoicing, why can’t online businesses be exempted as well?” 

He stressed that differing rules for traditional and online businesses create confusion and compliance difficulties, especially for MSMEs transitioning to digital platforms.

TRADA estimates that Sarawak has over 50,000 online-based MSMEs, primarily run by individuals supplementing their income through handmade products or small-scale trading. 

Janting highlighted that many of these businesses are still in the early stages of digital adoption and already face challenges with funding, labour, and technology. Adding e-invoicing complexities could force online sellers to reconsider their operations or exit the market.

He also pointed out that e-commerce platforms do not fully automate the e-invoicing process, making compliance even more difficult. TRADA warned that mandating e-invoicing for online sellers could stifle growth and innovation, contradicting government efforts to expand the digital economy.

Janting urged federal and state governments to consider the impact on livelihoods, particularly in less affluent communities. TRADA remains committed to advocating for policies that support MSME development in Sarawak and will continue engaging with stakeholders to ensure a fair and sustainable business environment.

Source: https://www.businesstoday.com.my/2025/04/02/sarawak-group-calls-for-universal-e-invoicing-exemption-for-varying-enterprises/