Malaysia Moves to Phase Two of E-Invoicing Mandate in 2025
Malaysia’s Inland Revenue Board (IRBM) is advancing its national e-invoicing mandate, with the second phase set to begin on January 1, 2025. Building on the first phase launched in August 2024, which requires e-invoicing for selected businesses, the IRBM is now expanding mandatory requirements to include companies with annual turnovers between RM 25 million (approximately EUR 5 million) and RM 100 million (approximately EUR 20 million).
Key Details of the E-Invoicing Mandate
Under this new phase, targeted businesses will need to issue and submit invoices electronically, adhering to formats such as XML or JSON based on the UBL2.1 standard. The scope of required documents includes:
- Standard e-invoices (including consolidated and self-billing formats)
- Credit note e-invoices
- Debit note e-invoices
- Refund e-invoices
To facilitate this transition, businesses can submit invoices through either the MyInvois Portal, a general-access option, or the API-based MyInvois System. While the portal is suitable for smaller transactions, the MyInvois System is optimized for higher volumes, though it may require additional technology investments for seamless integration.
Grace Period and Compliance Deadlines
Acknowledging the challenges of this transition, the IRBM has introduced a 6-month grace period for businesses to adjust to the new requirements, extending from January 1 to June 30, 2025.
After this period, non-compliant businesses will be subject to penalties starting from July 1, 2025. Penalties for the initial phase have already been enforced as of October 1, 2024.
There’s more you should know about e-invoicing in Malaysia – learn more about the new and upcoming regulations.
