E-invoicing compliance and regulatory updates - Malaysia

Electronic Invoicing Malaysia

The Inland Revenue Board (IRB) of Malaysia is rolling out e-Invoicing in phases starting from August 2024.

Malaysia's e-invoicing mandate aims to streamline invoicing processes, enhance transparency, and ensure compliance across all taxpayer segments.

The initiative applies to all Malaysian taxpayers engaged in commercial activities, covering domestic and international transactions across various sectors like B2G, B2B, and B2C.

Key Points:

E-Invoicing Mandate:

  • Implementation begins August 1, 2024, mandatory for taxpayers with an annual turnover exceeding RM100 million (Voluntary participation is encouraged regardless of turnover).

  • Phased rollout continues:

    • January 1, 2025: Mandatory for those with turnover between RM25 million and RM100 million.

    • July 1, 2025: Mandatory for all other taxpayers.

Process Description:

  • Invoices sent to government for verification and approval before reaching recipients.

  • Each invoice receives a certificate with a serial number and a QR code for authenticity.

  • Peppol (PINT) will be the preferred channel. Also, myTax portal will facilitate e-invoice exchange manually.

E-Invoice Issuance:

  • Supplier creates electronic invoice upon transaction, and send it to IRBM.

  • IRBM validates the invoice in real-time, providing a unique identifier for traceability.

  • Supplier must deliver the validated invoice with QR code to the buyer.

  • Both supplier and buyer receive notifications upon validation from IRBM.

  • Specific regulation for rejection or cancellation of invoice upon issuance.

Businesses are urged to prepare for the phased implementation and adopt the necessary technical and organizational changes for seamless integration.

Basware is your go-to service provider for facilitating seamless compliance with the forthcoming mandate in Malaysia.


Want to learn more about e-Invoicing compliance?

Download our Global e-invoicing and Tax Compliance fact sheet here for more information.

Electronic Invoicing Malaysia

The Inland Revenue Board (IRB) of Malaysia is rolling out e-Invoicing in phases starting from August 2024.

Malaysia's e-invoicing mandate aims to streamline invoicing processes, enhance transparency, and ensure compliance across all taxpayer segments.

The initiative applies to all Malaysian taxpayers engaged in commercial activities, covering domestic and international transactions across various sectors like B2G, B2B, and B2C.

Key Points:

E-Invoicing Mandate:

  • Implementation begins August 1, 2024, mandatory for taxpayers with an annual turnover exceeding RM100 million (Voluntary participation is encouraged regardless of turnover).

  • Phased rollout continues:

    • January 1, 2025: Mandatory for those with turnover between RM25 million and RM100 million.

    • July 1, 2025: Mandatory for all other taxpayers.

Process Description:

  • Invoices sent to government for verification and approval before reaching recipients.

  • Each invoice receives a certificate with a serial number and a QR code for authenticity.

  • Peppol (PINT) will be the preferred channel. Also, myTax portal will facilitate e-invoice exchange manually.

E-Invoice Issuance:

  • Supplier creates electronic invoice upon transaction, and send it to IRBM.

  • IRBM validates the invoice in real-time, providing a unique identifier for traceability.

  • Supplier must deliver the validated invoice with QR code to the buyer.

  • Both supplier and buyer receive notifications upon validation from IRBM.

  • Specific regulation for rejection or cancellation of invoice upon issuance.

Businesses are urged to prepare for the phased implementation and adopt the necessary technical and organizational changes for seamless integration.

Basware is your go-to service provider for facilitating seamless compliance with the forthcoming mandate in Malaysia.


Want to learn more about e-Invoicing compliance?

Download our Global e-invoicing and Tax Compliance fact sheet here for more information.

Archiving

Mandatory storage for 7 years.

Please note that storage abroad is permitted with approval from the Director General of Royal Malaysian Customs.


Want to know more about Basware’s archiving services?

Download our Basware Vault fact sheet here to learn more about our flexible and scalable solution.

Basware Services

Basware services currently support the reception of invoices, including PDF e-invoices, as well as sending e-invoices in Malaysia

SmartPDF, CloudScan, and Basware Validation are also supported.

We aim to extend our support to the new upcoming e-invoicing general mandate in Malaysia from day one.


Want to find out how we can help in your specific case?

Speak to a member of our team to learn more.

Contact us

Interoperability

Basware currently has no connections to any interoperability partners in Malaysia.

Our advice

Along with other ASEAN countries, Malaysia has begun introducing regulations to support an invoice clearance model.

Elevate your business practices effortlessly by entrusting Basware as your service provider of choice. Seamlessly align with upcoming mandates and stay ahead of the curve.


Want to understand how we can help in your case?

Get in touch with our experts.

Contact us

Electronic Invoicing Malaysia

The Inland Revenue Board (IRB) of Malaysia is rolling out e-Invoicing in phases starting from August 2024.

Malaysia's e-invoicing mandate aims to streamline invoicing processes, enhance transparency, and ensure compliance across all taxpayer segments.

The initiative applies to all Malaysian taxpayers engaged in commercial activities, covering domestic and international transactions across various sectors like B2G, B2B, and B2C.

Key Points:

E-Invoicing Mandate:

  • Implementation begins August 1, 2024, mandatory for taxpayers with an annual turnover exceeding RM100 million (Voluntary participation is encouraged regardless of turnover).

  • Phased rollout continues:

    • January 1, 2025: Mandatory for those with turnover between RM25 million and RM100 million.

    • July 1, 2025: Mandatory for all other taxpayers.

Process Description:

  • Invoices sent to government for verification and approval before reaching recipients.

  • Each invoice receives a certificate with a serial number and a QR code for authenticity.

  • Peppol (PINT) will be the preferred channel. Also, myTax portal will facilitate e-invoice exchange manually.

E-Invoice Issuance:

  • Supplier creates electronic invoice upon transaction, and send it to IRBM.

  • IRBM validates the invoice in real-time, providing a unique identifier for traceability.

  • Supplier must deliver the validated invoice with QR code to the buyer.

  • Both supplier and buyer receive notifications upon validation from IRBM.

  • Specific regulation for rejection or cancellation of invoice upon issuance.

Businesses are urged to prepare for the phased implementation and adopt the necessary technical and organizational changes for seamless integration.

Basware is your go-to service provider for facilitating seamless compliance with the forthcoming mandate in Malaysia.


Want to learn more about e-Invoicing compliance?

Download our Global e-invoicing and Tax Compliance fact sheet here for more information.