E-invoicing compliance and regulatory updates - Malaysia

Electronic Invoicing in Malaysia

Is e-invoicing mandatory in Malaysia ?

Yes. The Inland Revenue Board (IRB) of Malaysia is introducing mandatory e-invoicing in phases beginning August 2024.

Who is affected?

All taxpayers undertaking commercial activities in Malaysia must comply with the mandate according to their designated implementation timeline.

Compliance requirements

Businesses must clear e-invoices through the MyInvois platform and ensure recipients receive them via approved channels, such as Peppol. Cleared invoices must display a QR code as proof of clearance. Additionally, the mandate includes reporting requirements for non-domestic invoices, both as a supplier and a buyer.

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Key Deadlines 

• August 1, 2024: Mandatory for businesses with annual turnover or revenue exceeding RM100 million.
• January 1, 2025: Mandatory for businesses with annual turnover or revenue over RM25 million.
• July 1, 2025: Mandatory businesses with annual turnover or revenue over RM5 million.
• January 1, 2028: Mandatory for businesses with annual turnover or revenue over RM1 million.

Standards & Platforms  

Platforms

Each domestic invoice must be cleared via the government’s MyInvois platform. After clearance, the supplier receives confirmation and must include the QR code with clearance details on the invoice visualization. The invoice is then delivered to the buyer outside the MyInvois platform—Peppol is the recommended delivery channel.

What formats are required in Malaysia?

Invoices can be cleared either manually or through integration with the MyInvois platform using UBL 2.1, adhering to specific data standards. This integration is typically managed by a certified service provider that can support various formats.

For sending invoices to buyers, Malaysia’s preferred method is via Peppol, specifically using the MY-PINT format (Malaysia-specific Peppol format). Other allowed channels include email, where the attached invoice must include a QR code as clearance proof.

Archiving in Malaysia

What are the archiving requirements in Malaysia?

Taxpayers must retain all relevant transaction records and legal invoices for a minimum of seven years.

Legal invoice:

• For suppliers: The legal invoice comprises the cleared invoice data and associated clearance information.
• For buyers: The legal invoice includes the cleared data, clearance details, QR code, and any related attachments received from the supplier.

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Key Actions  

• Ensure compliance – Prepare to issue e-invoices via MyInvois and receive them via Peppol MY-PINT in accordance with your assigned deadline.
• Archive Invoices – Retain all legal invoices, including clearance info and QR codes, for at least seven years to meet regulatory requirements.

Malaysian E-Invoicing and Archiving requirements at a glance:

Supplier requirement: Send invoice data to the clearance platform, retrieve clearance info, and deliver the finalized invoice (with QR code) to the recipient electronically.

Buyer requirement: Receive cleared domestic invoices electronically and handle clearance of cross-border and non-cleared domestic invoices.

Archiving requirement: Both supplier and buyer must archive the legal invoice and store data for at least seven years. Cleared invoices are also retained by IRBM post-clearance.