E-invoicing Malaysia

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What is an e-invoice?

Benefits implementing E-Invoice

Using e-invoicing helps businesses in many ways

Save Money

E-invoicing stops the need for paper, stamps, or doing things by hand, which costs less.

Work Faster

E-invoicing makes things go quicker and more accurate, so there are fewer mistakes and payments happen faster.

Follow Rules Better

It helps to stick to tax rules and do things right, so there are fewer mistakes and no fines.

Common e-invoice Formats and Standards

E-invoicing uses the same patterns and rules for invoices, making sure they all look and say the same things. This helps them move easily between different computer systems.

JSON (JavaScript Object Notation)

Simple format easy for people and computers to read. More people using it for e-invoices because it's easy and works well with different systems.

XML (eXtensible Markup Language)

A flexible way to describe information in a format that's easy for people to read. Many people use it for e-invoices because it's flexible and easy to understand.

New e-Invoice Implementation Timeline

We'll introduce e-invoices step by step to make the change easy. We've planned how to do it, considering how much money businesses make, so everyone has enough time to prepare and get used to e-invoices.

Targeted Taxpayers

Implementation Date

Taxpayers with an annual turnover or revenue of more than RM100 million

1 August 2024

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

1 January 2025

All taxpayers

1 July 2025

Who are the taxpayers in e-Invoice?

According to LHDN, all businesses in Malaysia will have to use e-invoices soon. But what does "taxpayer" mean?

In Malaysia, a taxpayer is someone or a group that earns money and must pay taxes to the government. These taxes help the government run the country by funding services like roads, healthcare, and schools.

According to the Income Tax Act 1967, a taxpayer can be anyone or any organization that has to pay income tax in Malaysia. This includes individuals, companies, and other groups that make money in the country.

So, taxpayers are basically anyone or any organization that earns taxable income in Malaysia. Almost everyone or every entity, except for some exceptions, will have to use e-invoices, according to the e-invoicing guide.

How e-invoice work after implement in AutoCount Software?

Overview of the e-Invoice Model

Taxpayers can pick how they want to send e-invoices to IRBM based on their situation and what they need for their business. This makes switching to e-invoices easier.

Taxpayers have two options for sending electronic invoices:

MyInvois Portal

Application Programming Interface (API)

Fill the form now and get more information about E-Invoice!

Frequently Asked Questions

Does e-invoicing only apply to transactions in Malaysia?

No, e-Invoice is applicable to both domestic and cross-border transactions. The cross-border transactions include import and export activities.

For clarity, the compliance obligation is from the issuance of e-Invoice perspective. In other words, taxpayers who are within the annual turnover or revenue threshold as specified in Section 1.5 of the e-Invoice Guideline are required to issue and submit e-Invoice for IRBM’s validation according to the implementation timeline.

Are all industries included in the LHDN e-invoice implementation? Are thereanyindustries exempted?

Right now, all industries in Malaysia must follow LHDN's e-invoice rules. But some people, types of money earned, and spending might not have to use e-invoices. You can find out more about this in Section 1.6 of the LHDN e-invoice Guideline.

What is the process for issuing an e-invoice to a foreign buyer without a TIN?

Suppliers are required to obtain buyer’s details from the foreign buyers for the purposes of e-Invoice issuance.

In relation to TIN to be input in the e-Invoice, supplier may use “EI00000000020” for foreign buyers without TIN. Refer to Section 10.5 of the e-Invoice Specific Guideline for further details.

Is there any adjustment window allowed to the supplier to cancel an invoicesubmitted to IRBM?

Yes, there is a 72-hour timeframe for the supplier to cancel the LHDN e-invoice

How do taxpayers issue an LHDN e-invoice to a non-TIN holder such as foreign(non-Malaysian) buyers?

  • To issue an LHDN e-invoice to foreign buyers without a TIN (Taxpayer IdentificationNumber), suppliers should obtain the buyer's details.
  • If a TIN is required, but the foreign buyer lacks one, suppliers can use theplaceholder "EI00000000020."

Is LHDN e-invoice applicable to transactions in Malaysia only?

No, LHDN e-invoice is not limited to transactions within Malaysia. It is applicable toboth domestic and cross-border transactions, which include import and export
activities.

Is an LHDN e-invoice required for return of monies to buyers?

  • Yes, a refund note LHDN e-invoice is required for returning money to buyers unless the payment was made in error by buyers, there was an overpayment by buyers, or it involves returning security deposits.

What does IRBM validate in the LHDN e-invoice?

  • IRBM validation includes a series of checks to ensure the LHDN e-invoice submitted to IRBM conforms to the LHDN e-invoice format and datastructure as specified by IRBM. Refer to section 2.4.3 of the LHDN e-invoice Guidelinefor further details.

Does the MyInvois Portal allow for LHDN e-invoice to be created and storedindraft form prior to finalisation and issuance?

  • Yes, the supplier will be able to create LHDN e-invoice in draft or proforma. LHDNeinvoice will only be accepted for tax purposes once the validation is successful.

Do I need to issue an e-invoice when I refund a buyer?

Yes, a refund note e-Invoice is required for return of monies to buyers, with the following exception:

  1. Payment made wrongly by buyers
  2. Overpayment by buyers
  3. Return of security deposits

Are there any upcoming engagement sessions with IRBM?

IRBM is actively conducting a series of engagement sessions with industry players, tax practitioners, professional bodies and identified stakeholders to provide comprehensive information regarding the implementation of e-Invoice in Malaysia including:

  1. Sharing the planning of action plans, strategies, and status developments regarding the implementation of e-Invoice; and
  2. Obtaining feedback and views through two-way communication between IRBM and taxpayers on the implementation of e-Invoice.

Which e-invoice model will Malaysia adopt?

IRBM will adopt the Continuous Transaction Control (CTC) Model where the validation is done in near real-time by IRBM.

Will e-invoicing become mandatory for all businesses?

Yes, all businesses will be required to issue e-Invoice in accordance to the phased mandatory implementation timeline, which is based on the business’ annual turnover or revenue threshold.

What checks does IRBM perform on e-invoices?

IRBM validation includes a series of checks to ensure the
e-Invoice submitted to IRBM conforms to the e-Invoice format and data structure as specified by IRBM. Refer to section 2.4.3 of the e-Invoice Guideline for further details.l.

Do I need to issue an e-invoice for disbursements and reimbursements?

An e-Invoice may be required for disbursements and reimbursements, subject to the situation. Refer to Section 5 of the e-Invoice Specific Guideline for further details.

Who should we reach out to if there are queries or concerns?

For any queries regarding the LHDN e-invoice implementation in Malaysia, kindlysend an email to myinvois@hasil.gov.my

What are the thresholds for LHDN e-invoice implementation to be applicable to taxpayers?

All taxpayers, including companies, must implement LHDN e-invoice based on their
annual turnover or revenue as reported in the FY22 Audited Financial Statements.

Will all businesses be required to issue LHDN e-invoice?

All Malaysian businesses must issue LHDN e-invoices based on a phasedimplementation timeline linked to their annual turnover or revenue threshold, facilitating a smooth transition for businesses of varying sizes.

Will IRBM provide any technical guidance on system integration?

Yes, a Software Development Kit (SDK) will be provided to facilitate system integration

What is the timeframe to issue LHDN e-invoice adjustments (i.e., debit noteandcredit note) after the 72-hours validation period?

  • Suppliers have no specific timeframe for LHDN e-invoice adjustments and can followtheir company policies.
  • Foreign suppliers and buyers, not using the MyInvois System, make adjustments through specific LHDN e-invoices like debit notes, credit notes, or refund notes

Does the MyInvois Portal allow for editing of information after the LHDNeinvoice has been verified by IRBM?

  • No, the supplier cannot edit LHDN e-invoice information after it has been verifiedbyIRBM.
  • If changes are needed, the supplier should cancel the LHDN e-invoice within 72 hours from the time of validation and reissue a new LHDN e-invoice or use a debit note, credit note, or refund note LHDN e-invoice to adjust the original LHDN e-invoice.
  • After 72 hours from the time of validation, a new LHDN e-invoice must be issuedtomake any changes.

Is an LHDN e-invoice required for disbursements and reimbursements?

  • An LHDN e-invoice may be necessary for disbursements and reimbursements depending on the situation.