What is E-Invoicing?
An e-Invoice is a digital document, structured in a format specified by the Inland Revenue Board of Malaysia (IRBM), that can be automatically processed by a compatible system. It serves as a digital record of a transaction between a seller and a buyer. This innovative approach supersedes traditional paper invoices and other electronic documents like credit notes, debit notes, or invoices in non-standard formats (such as images, PDFs, and Excel files).
In Malaysia, the implementation of e-Invoicing involves two separate but interconnected components:
- The Malaysia Digital Economy Corporation (MDEC) is spearheading the implementation of e-Invoicing for business digitalisation (B2B) using the Peppol framework.
- The Inland Revenue Board of Malaysia (LHDNM) is responsible for the role of e-Invoicing in tax reporting and compliance.
The implementation of e-invoicing in Malaysia is a strategic move by the government to bolster the nation’s digital economy and streamline tax administration. By transitioning from traditional paper invoicing to a digital format, the government aims to reduce tax leakage and improve the accuracy of tax collection.
Timeline for the Rollout of e-Invoicing in Malaysia
The IRBM has a strategy to introduce e-invoicing in stages to facilitate a seamless transition. Here is the timeline for the implementation of e-invoicing in Malaysia:
| Targeted Taxpayers | Go Live 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 |
What does the e-Invoice workflow look like in Malaysia?
Advantages of Adopting e-Invoicing in Malaysia
The introduction of e-invoicing in Malaysia offers businesses a streamlined and efficient invoicing experience. It not only enhances business productivity but also bolsters tax compliance. Here are some key benefits that e-invoicing brings to the table in Malaysia:
How can VLAN Asia help?
We understand the unique needs of Malaysian businesses. Our team is dedicated to providing personalized support and guidance every step of the way. With our user-friendly interface, robust features, and commitment to excellence, we empower you to take control of your finances and propel your business forward. Our solution provides comprehensive support for e-Invoicing, acting as a middleware to seamlessly connect your ERP/POS system with the IRBM cloud. This ensures 100% IRBM compliance. The key features are:
Consolidated Invoice
You can send multiple invoices as a consolidated transaction to LHDN. This is considered an additional requirement.
Monthly & Custom Reports
Send a monthly report with all transactions sent/received during the month, and you can create custom reports from the dashboard.
B2B & B2C Transactions
The system can handle a mix of B2B and B2C transactions. All your invoices will be delivered through Peppol or by email.
E-Invoicing Readiness
You can easily find out who is ready for e-Invoicing. For example, your trading partners are able to send or receive an invoice through the e-Invoicing Network (PEPPOL).
E-Invoice Responses
Our solution can implement invoice responses from your FMIS back to your suppliers with the invoice status.
Duplicated Invoices Detection
Detect any duplicate invoices (same supplier, same invoice number) and you’ll get notified right away via email.
Multiple Attachments
Deliver multiple attachments with each transaction, and we support different types of files like PNG, JPG, TIFF, CSV, PDF, & Spreadsheets.
Experience the ease and efficiency of our e-Invoicing solution. Say goodbye to manual errors and hello to streamlined operations.
Ready to take the next step in your business journey?
Schedule For A Demo Session Now!