E-invoicing in Malaysia: no impact on car sales but full loans disappear
Malaysia's car industry can breathe a sigh of relief. The Ministry of International Trade and Industry (MITI) assures that the upcoming e-Invoicing system (starting August 1, 2024) won't affect total industry volume (TIV) or vehicle sales.
While overall sales seem secure, the new system brings an end to "full loans." Previously, some dealerships offered loan packages that eliminated the need for a down payment. This involved marking up the car price on the invoice submitted to the bank, ensuring the loan amount covered the actual cost.
With e-Invoicing, such discrepancies become impossible. Invoices sent to the bank and the Inland Revenue Board of Malaysia (LHDN) must match, preventing inflated prices and the full-loan practice.
The initial implementation phase targets companies with an income exceeding RM100 million. This means most car dealerships, typically smaller businesses, won't face immediate challenges. However, MITI acknowledges that adapting to the new system might cause some initial inconvenience.
The e-Invoicing system aims to bring transparency and efficiency to financial transactions. While it eliminates the full-loan option, it protects both buyers and lenders from inflated prices and potential financial risks.
Key Takeaways
- E-Invoicing won't significantly impact car sales in Malaysia.
- Full car loans (without a down payment) will no longer be possible.
- The initial rollout focuses on larger companies, giving dealerships time to adjust.
Thinking of buying a car? Research financing options that fit your budget under the new e-Invoicing system. Explore dealerships offering transparent loan terms that comply with the latest regulations.
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