The guide to Malaysia’s
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. This goal of the platform is to ensure the accuracy and compliance of invoices, making the taxation process more transparent and efficient.
On 28 October 2023, the IRBM issued updated guidelines regarding the phased implementation of e-invoicing for specific taxpayers. These guidelines include the following:
- E-invoice Guideline Version 2.1 (published on 28 October 2023)
- E-invoice Specific Guideline Version 1.1 (published on 28 October 2023)
- E-invoice Catalogue (published on 12 October 2023)
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 or JSON format
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.
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
1 January 2025
Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM100 million
1 July 2025
All other taxpayers
Additionally, starting in 2027, e-invoicing will extend to B2C transactions with the introduction of mandatory electronic tickets sent to the tax authority in real-time.
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.
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.
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.
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.
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.
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