e-Invoicing Software in Malaysia | LHDN Compliant | Taxilla

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ENINVOICE MALAYSIA

Our e-Invoicing Features

Taxilla's eInvoice in Malaysia ensures compliance with IRBM regulations, offering seamless data integration, robust IRBM communication, and cutting-edge technologies.

Seamless Data Integration

  • - Single or Multi-Source Input
  • - Efficient Data Sorting
  • - IRBM-Compliant Validation
  • - Summary Invoicing Options

Robust IRBM Communication

  • - Secure Data Transmission
  • - Instant Status Updates
  • - Submission of B2C consolidated eInvoice
  • - Automatic Download of Purchase Invoices from IRBM

Advanced Technology Utilization

  • - SHA 256 Data Integrity
  • - Digital Signature Security
  • - Efficient Invoice Archiving
  • - Integrated delivery Systems
  • - Automated Reconciliations

Why Choose Taxilla for e-Invoicing in Malaysia?


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Intelligent Middleware Solutions

  • Streamlined Data Integration
  • Pre-validation for Compliance
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Zero Non-Compliant
Risk

  • Dynamic Data Validation
  • Accurate Documentation
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Enhanced Collaboration and Notification System

  • Role-Based Workflow
  • Automated Alerts
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Effortless
Connectivity

  • Integration with Regulators & B2B Networks
  • Zero Downtime Guarantee

Stay Compliant with Malaysia's e-Invoice Rollout

In a groundbreaking move, the Inland Revenue Board of Malaysia (IRBM)and the Malaysian Digital Economy Corporation (MDEC) have officially announced the phased introduction of electronic invoicing (e-Invoice) in Malaysia.

Important Dates: Stay Compliant with Malaysia's e-Invoice Rollout

  • August 1, 2024: Electronic invoicing becomes applicable for taxpayers with an annual turnover of MYR 100 million or more.
  • January 1, 2025: Mandatory electronic invoicing for taxpayers reporting an annual turnover exceeding 25 million MYR, up to 100 million MYR.
  • July 1, 2025: Mandatory electronic invoicing extends to all other taxpayers

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How Taxilla's eInvoicing Solution Malaysia Works

e-invoice KRA workflow



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Frequently Asked Questions
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Is e-invoicing mandatory in Malaysia?
Yes, starting from 2024, e-invoicing will be mandatory for businesses in Malaysia. This is part of a phased introduction to streamline business operations and enhance efficiency. The implementation will be based on annual turnover or revenue thresholds from 1 August 2024 onwards.
What are the regulations for e-invoicing in Malaysia?
The Inland Revenue Board of Malaysia (IRBM) has set regulations including the use of a standardized format, mandatory data fields, requirements for digital signatures, validation and clearance processes, integration with tax authority systems, and record-keeping requirements. These are essential for regulatory compliance.
What is the difference between an e-invoice and a digital invoice?
An e-invoice is generated and transmitted electronically in a standardized format, while a digital invoice can be any invoice created and stored digitally, irrespective of its transmission method. E-invoices are more structured and easily integrate with accounting systems for automated processing and real-time tracking.
What is the National e-Invoicing Initiative in Malaysia?
This government-led initiative, driven by the IRBM, aims to encourage e-invoicing adoption among businesses. It focuses on enhancing efficiency, improving tax compliance, promoting the digital economy, facilitating business-to-government transactions, and supporting SMEs. It involves developing guidelines, standards, and a centralized e-invoicing platform (MyInvois Portal) for creating, submitting, validating, and storing e-invoices.
What are the benefits of e-invoicing in Malaysia?
Benefits include increased efficiency, cost savings, improved accuracy, faster payment cycles, integration with digital systems, improved traceability and transparency, enhanced supplier-customer relationships, regulatory compliance, real-time tracking and reporting, and valuable data analytics and insights
What's the Protocol for e-Invoicing Compliance?
To comply, stakeholders must follow the e-invoicing guidelines which include submitting e-invoices within the revenue or turnover thresholds as specified in Section 1.5 of the e-Invoice Guideline, adhering to IRBM's validation process before the system's full implementation.
Engagement Opportunities with IRBM on e-Invoicing?
IRBM is actively engaging with industry contributors, tax advisors, and software developers through discussions that aim to provide comprehensive insights into the e-invoicing process in Malaysia. These include updates on the e-invoicing system's planning, status, and bidirectional communication between IRBM and tax filers.
What is an e-invoice in Malaysia?
An e-invoice is a digital representation of a transaction between a supplier and a buyer, formatted in a structured, machine-readable manner. It's a file created in XML or JSON format, not PDF or JPG.
What format does an e-invoice need to be in for IRBM validation?
Businesses must submit e-invoices in XML or JSON format as specified by IRBM.
How do I transmit e-invoices?
Businesses can transmit e-invoices through the MyInvois Portal or by using the Application Programming Interface (API).
Does e-invoicing apply only to transactions within Malaysia?
No, e-invoicing is not limited to domestic transactions. It's also applicable for transactions that cross borders.
What TIN should individual taxpayers use for e-invoices?
Individual taxpayers should use a TIN with the prefix "IG" when issuing or receiving e-invoices.
How do taxpayers issue an e-invoice to a foreign buyer without a TIN?
When sending an e-invoice to a foreign buyer without a Malaysian Tax Identification Number (TIN), suppliers will need to obtain their necessary details. For the TIN field in the e-invoice, you can use "EI00000000020" as a placeholder.
Does the supplier's invoice number change after IRBM validation?
No, the supplier's original invoice number will remain on the e-invoice. However, IRBM will assign a unique identifier number to each validated e-invoice for their records.
What types of transactions are covered by e-invoicing in Malaysia?
e-Invoicing in Malaysia applies to transactions between businesses (B2B), businesses and customers (B2C), and businesses and the government (B2G).
What are the penalties for not issuing e-invoices?
No, e-invoicing is not limited to domestic transactions. It's also applicable for transactions that cross borders.
Can a business cancel an e-invoice after submitting it to IRBM?
Yes, they will have a 72-hour window to cancel an e-invoice after submitting it to IRBM. For more details, refer to sections 2.3.6 or 2.4.5 of the e-Invoice Guideline.
What types of income are covered by e-invoicing?
e-Invoicing is generally required for all types of income and expenses, except for certain exemptions outlined in the e-Invoice General Guideline and e-Invoice Specific Guideline. Note that these exemptions can change over time.
When is e-invoicing required for specific transactions?
  • Deposits: e-Invoicing is required for non-refundable deposits but not for refundable ones.
  • Director fees: e-Invoicing is typically required if director fees are contractual income.
  • Disbursements and reimbursements: e-Invoicing might be required depending on the circumstances.
  • Intercompany charges: e-Invoicing is mandatory.
  • Inter-department/inter-division transactions: e-Invoicing is not required within the same company, but it's optional.
Who is responsible for issuing self-billed e-invoices?
The buyer (the taxpayer making the payment) is responsible for issuing the self-billed e-invoice. This applies regardless of whether the agent, dealer, or distributor is an individual or a corporation.
How to handle incentive payments in self-billed e-invoices?
  • Monetary incentives: Issue self-billed e-invoices based on periodic statements, using appropriate classification codes.
  • Non-monetary incentives: If information is only available annually, transmit it then. If available on an accrual or payment basis, transmit it with the same frequency as regular invoices/statements.
Can Malaysian buyers consolidate e-invoices from the same foreign supplier?
Generally, no. Each transaction typically requires a separate self-billed e-invoice, except for certain exceptions.
What is the relationship between e-invoices and RMCD clearance for imported/exported goods?
The existing documentation requirements and processes for RMCD clearance remain applicable even with e-invoicing. e-Invoices are designed to provide the necessary information for both IRBM and RMCD. The visual representation of the e-invoice might be usable for RMCD purposes if it contains all the required information under Sales Tax or Service Tax (SST) laws.
Are MSMEs required to issue e-invoices?
Yes, all MSMEs (Micro, Small, and Medium Enterprises) conducting business in Malaysia are required to implement e-invoicing according to the phased implementation timeline outlined in the e-Invoice Guideline.
Can I use a combination of API and MyInvois Portal for e-invoice transmission?
You can use both the API and the MyInvois Portal to send your e-invoices. However, it's important to perform reconciliation to ensure there are no duplicate submissions to IRBM. This will help prevent errors and maintain accuracy in your e-invoicing process.
Can I use Peppol for e-invoice transmission?
Yes, taxpayers can choose any transmission method, including Peppol Service Providers, that suits their business needs.
Does the API solution offer security and encryption services?
The API solution utilizes industry-standard encryption protocols to ensure the confidentiality and security of transmitted information. It also employs network and security monitoring tools to safeguard data privacy.
Accelerate Your Business Towards Compliance: Join the IRBM eInvoice Pilot with Taxilla
The exciting news is on the horizon for businesses in Malaysia as the Inland Revenue Board of Malaysia (IRBM/LHDN) is set to launch a groundbreaking eInvoice pilot starting May 2024. With approximately 50 businesses already participating, the IRBM is actively encouraging more enterprises to join this transformative e-invoicing initiative. The pilot serves as a crucial step in testing the effectiveness of the IRBM system and addressing any challenges in connecting with it for efficient invoice processing in Malaysia.
Why middleware for e-Invoice compliance in Malaysia
As per IRBM guidelines Commencing from August 2024, eInvoice becomes mandatory for companies with revenues exceeding RM 100 million This requirement applies to both B2B and B2C transactions.
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