E-Invoicing in Malaysia

E-Invoicing in Malaysia

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The guide to Malaysia’s
e-invoicing programme

E-invoicing is a digital approach to invoicing that streamlines the creation, submission, validation, and archiving of invoices electronically. As Malaysia gears up for the introduction of e-invoicing in 2024, businesses need to be prepared for this significant shift in their invoicing processes. The goal of Malaysia's e-invoicing mandate is to optimise invoicing procedures, boost adherence to regulations and improve overall operational efficiency within the corporate sector. E-invoicing promises increased efficiency, transparency and compliance in the world of taxation, ultimately benefitting businesses and the nation's economy.

Businesses will be required to adhere to the e-invoicing guidelines set by the Inland Revenue Board of Malaysia (IRBM) and stay informed of key implementation dates to ensure a smooth transition. Collaboration with an automation solution provide will facilitate the process and help achieve compliance.

 

IRBM's e-invoicing requirements

IRBM is taking a proactive approach to e-invoicing by creating a centralised platform where all e-invoices must be submitted for validation and registration. The goal of the platform is to ensure the accuracy and compliance of invoices, making the taxation process more transparent and efficient.

IRBM issued updated guidelines regarding the phased implementation of e-invoicing for specific taxpayers. These guidelines include the following:

For more information visit the LHDN website here

How to submit invoices in Malaysia

There are two methods available for transmitting invoices to the IRBM portal:

  • Manually via the MyInvois portal

    Businesses can manually submit their invoices through the MyInvois portal provided by the IRBM.

  • Automatically via API in XML 

    Businesses can opt to submit invoices automatically via API in either XML or JSON format for a more streamlined process. This approach provides efficiency and reduces manual intervention.

Once an invoice is submitted, IRBM will assign a unique identifier and QR code to each document as part of its validation framework. Both the sender and the recipient will receive notifications from IRBM upon successful validation. Subsequently, the supplier must deliver the validated document to the buyer through their chosen channels.

LHDN Malaysia Releases SDK (Software Development Kit ) & Updated Guidelines for e-invoicing

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Implementation schedule

The phased rollout of e-invoicing in Malaysia will affect businesses at different times based on their annual turnover:

  • 1 August 2024
    Taxpayers with an annual turnover or revenue of more than RM100 million

    Esker has been supporting a live customer with MyInvois since 1st August 2024, demonstrating our readiness and capability to deliver effective solutions.

    6 Month Relaxation Period: 1 August 2024 – 31 January 2025

  • 1 January 2025
    Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM100 million

    6 Month Relaxation Period: 1 January 2025 – 30 June 2025

  • 1 July 2025
    All other taxpayers

    6 Month Relaxation: Relaxation Period: 1 July 2025 – 31 December 2025

  • Starting 2027

    E-invoicing will extend to B2C transactions with the introduction of mandatory electronic tickets sent to the tax authority in real time.

Purpose of the Relaxation Period:

The relaxation period offers businesses additional time to align with the new e-invoicing requirements, allowing them to adapt their systems and processes. During this period, businesses can adjust to the mandatory changes, ensuring smoother transitions for businesses of all sizes.

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Navigating the path to e-invoicing in Malaysia

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Why Esker

Esker’s expertise in electronic document management and automation solutions ensures that the transition to e-invoicing is smooth and hassle-free. Fully compliant with the technical and legal regulations of e-invoicing in Malaysia, Esker helps companies process e-invoices in conformity with all specifications, without disrupting internal operations for sending and receiving electronic documents from business partners.


  • Compliance assurance

    Esker’s e-invoicing solution is fully compliant with the latest regulatory requirements set by IRBM as well as Pan-European Public Procurement On-Line (PEPPOL) compliant. Additionally, Esker is an appointed PEPPOL Access Point.


  • Seamless integration

    Esker’s solution integrates with existing systems, such as ERPs, to ensure a smooth transition without disrupting your current operations. Once information is received from your ERP, Esker will send it to IRBM and receive the validated information from IRBM using API integration.


  • Enhanced efficiency

    Automation eliminates manual errors, reduces processing time and increases overall efficiency. By streamlining your process workflows, you can focus on your core business activities and drive growth.


  • Real-time visibility

    Esker provides real-time visibility into the entire invoicing process, enabling you to easily track invoices, monitor payment statuses and gain valuable insights. You can make informed business decisions and improve cashflow management with comprehensive visibility.

 

 

PEPPOL E-Invoicing in Malaysia

Esker supports businesses in Malaysia to align with LHDN's e-invoicing requirements through the PEPPOL network. With our solution, you can efficiently send and receive invoices, ensuring readiness for compliance with Malaysia's evolving e-invoicing framework.

For detailed information about the PEPPOL network, visit the MDEC PEPPOL page here

Esker is currently in the certification process to become an accredited PEPPOL service provider. Certification is anticipated to be completed by the end of this year, further reinforcing our commitment to helping businesses stay compliant and future-ready.

You’re in good company. Explore some of the other companies and AP leaders that have benefited from automating their processes with Esker.
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