Malaysia: e-Invoicing Mandate Enters Second Phase at the Start of 2025
Malaysia’s Inland Revenue Board (IRBM) is progressing to the second phase of its e-invoicing mandate, which is set to take effect on January 1, 2025.
From now on, the IRBM will be targeting companies with annual turnover between RM 25 million and 100 million (around 5-20 million euros). This phased approach aims to gradually bring more businesses under mandatory e-invoicing compliance.
Key Requirements and Document Scope
Under this second phase, affected businesses must submit e-invoices in electronic formats, specifically using the Universal Business Language (UBL2.1) in XML or JSON formats. The documents covered in this mandate include:
- E-invoices, including consolidated and self-billing types
- Credit note e-invoices
- Debit note e-invoices
- Refund e-invoices
Submission Methods
To comply, businesses have two options for e-invoice submission:
- MyInvois Portal: Suitable for smaller businesses or those with lower transaction volumes
- MyInvois System (API): Recommended for larger companies, as it can better handle high transaction volumes, but may require initial technology investments and system upgrades.
Compliance Grace Period and Penalties
A grace period from January 1 to June 30, 2025, provides businesses additional time to adjust. During this period, compliance requirements are slightly relaxed, allowing companies to issue consolidated e-invoices. However, penalties for non-compliance will apply starting July 1, 2025, after the grace period ends.
Peppol Implementation Support
As part of Malaysia’s broader e-invoicing strategy, Peppol-accredited providers, such as Pagero, are working closely with the Malaysian Digital Economy Corporation (MDEC) to streamline e-document exchanges. Through this partnership, providers are assisting businesses with e-invoicing compliance, and ongoing sessions continue to refine the e-invoicing processes across Malaysia.
There’s more you should know about e-invoicing in Malaysia – learn more about the new and upcoming regulations.
