e-Invoicing in Malaysia: A Comprehensive Guide by Taxilla

e-Invoicing in Malaysia: A Comprehensive Guide by Taxilla

The IRBM mandated the adoption of e-invoicing through a phased implementation plan. Starting August 1, 2024, all businesses with a turnover exceeding RM 100 million must generate e-invoices, gradually extending to all registered businesses for B2B, B2G, and B2C transactions. This initiative aims to boost the economy and advance tax digitization, making e-invoicing a key component of Malaysia's digital transformation strategy.
Timeline for the implementation of e-Invoicing in Malaysia

The Malaysian government has announced a phased rollout for mandatory e-invoicing, targeting different groups of taxpayers over time:

 1 August 2024: Businesses with an annual turnover exceeding RM 100 million must start generating e-invoices.

 1 January 2025: Businesses with an annual turnover between RM 25 million and RM 100 million are required to adopt e-invoicing.

 1 July 2025: All other taxpayers must implement e-invoicing.

Types of e-Invoices in Malaysia
To understand the different types of e-invoices in Malaysia and how they impact your business, please refer to this comprehensive guide.
Direct integration via API for connecting to IRB's MyInvoIS System:
Businesses looking to easily interface their ERP or invoice software with the Inland Revenue Board's (IRB) MyInvoIS System for e-Invoicing compliance have the option of doing so through direct integration via API.
Advantages:
o Flexibility to certain business requirements and procedures.
o Maintains data consistency and accuracy across systems.
o The E-Invoicing process is automated for more efficiency.
o Scalable to accommodate growing quantities of transactions.
o Simplifies reporting and auditing by centralizing invoice data.
o Uses current ERP modules to ensure compliance with e-invoicing.
o Strong internal management of the integration process