August 2024 MyInvois B2B E-Invoicing Launch in Malaysia
According to the latest feedback received from the Malaysian authorities, no postponement is planned regarding the implementation date of the upcoming e-invoicing mandate. Starting August 1, all Phase 1 companies, which are taxpayers with an annual turnover or revenue of more than RM100 million, will be able to access the production environment.
Schedule for the Pre-Clearance E-Invoicing System in Malaysia
- August 1, 2024: Taxpayers with an annual turnover exceeding MYR 100 million (approximately $21 million) – around 4,000 taxpayers
- January 1, 2025: Taxpayers with an annual turnover between MYR 25 million (approximately $5 million) and MYR 100 million
- July 1, 2025: All other taxpayers
- June 28, 2025: Release of new guidelines, updated FAQ, and Software Development Kit
Electronic Invoicing in Malaysia
The LHDN has issued version 3.0 guidelines, a Software Development Kit, and Frequently Asked Questions for the August 2024 launch of its Continuous Transaction Control (CTC) e-invoicing model, MyInvois. This system requires sales invoices (in XML format) to be submitted to the tax authorities for verification via the government’s API.
Upon approval, the invoice receives a unique digital Certification Serial Number and can be sent to the customer in any format. There will be an option to use PEPPOL for this invoice exchange. A QR Code must be included on the invoice sent to the customer.
For B2C transactions where e-invoices are not required by consumers for tax purposes, suppliers may issue standard receipts or invoices as per current practices. After a specified period, suppliers must aggregate these receipts or invoices and issue a combined electronic invoice to document the transactions made with consumers.
Challenges and Benefits of E-Invoicing in Malaysia
Many Malaysian micro, small, and medium-sized enterprises (MSMEs) are concerned about the implementation of e-invoicing. They worry about increased operational costs, upgrading their IT systems, and not having enough knowledge about the new system.
The Malaysian government is offering several benefits to help MSMEs with the transition. One option is to use the free MyInvois portal to issue consolidated e-invoices, which combine all sales transactions for a month. Even for businesses that choose to develop their own system or use a commercial provider, there are tax breaks available. These include a shorter capital allowance claim period for IT equipment and software and tax deductions for consultation fees related to e-invoicing implementation.
For businesses seeking a comprehensive e-invoicing solution that ensures seamless compliance with Malaysian fiscal regulations, explore Comarch’s e-Invoicing solution.
There’s more you should know about e-invoicing in Malaysia – learn more about the new and upcoming regulations.
