What is E-invoice Malaysia?
An e-Invoice is a digital, structured record of a commercial transaction between a supplier and a buyer, replacing traditional paper invoices or other electronic formats like credit and debit notes. It acts as a precise digital representation of the transaction, containing crucial details such as supplier and buyer information, descriptions of goods or services, quantities, prices, taxes, and the total amount due.
Features of an E-Invoice Malaysia include:
- Structured Format: Typically in XML or JSON, allowing seamless data processing.
- Complete Transaction Data: Ensures accurate record-keeping and compliance with regulations.
- Real-Time Submission: e-Invoices are transmitted to LHDN for near real-time reporting, ensuring up-to-date financial records.
- Applicable to All Transactions: This includes Business-to-Business (B2B), Business-to-Consumer (B2C), and Business-to-Government (B2G).
E-Invoice Implementation Timeline in Malaysia
Summary of e-Invoicing Implementation Phases:
- 1 January 2026 – Taxpayers with annual turnover or revenue between RM1 million and RM5 million
- 1 July 2026 – Taxpayers with annual turnover or revenue of up to RM1 million
- 1 July 2026 – 2023 Financial Year Onward
- Temporarily Exempted – Taxpayers with annual turnover or revenue less than RM 500k
Important Note : Starting From 1 Jan 2026 each transaction involving the sale of good or provision of services exceeding RM10,000 are not permitted to issue consolidated E-Invoice
What is you currently software?
Conclusion
The e-invoicing process could be automated or manual, depending on the requirements. Large businesses are suggested to integrate API integration with business systems for automated e-invoicing processes, while medium and small businesses can go for a manual MyInvois portal.
The process for batch and self-billed e-invoices generation is slightly different. However, the major walkthrough remains the same with few changes.
Taxpayers can choose the e-invoice model that best suits their needs, ensuring a smooth transition to the future of financial transactions
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Credit By : Webstation