E-invoicing implementation in Malaysia for certain taxpayers is on 1 August 2024 and will be mandatory for all businesses in Malaysia from 1 July 2025. (updated on 3 May 2024 as appears on the Malaysian Inland Revenue Board's (IRB) website).
What is an e-invoice?
Introduced and will be implemented by IRB
Contains the same essential information as a traditional document, for example, supplier’s and buyer’s details, item description, quantity, price excluding tax, tax, and total amount, which records transaction data for daily business operations
Replaces paper or electronic documents such as invoices, credit notes and debit notes
How does the e-invoice work?
There are two (2) options for the e-invoice transmission mechanisms for taxpayers selection:
MyInvois Portal
A portal hosted by IRB
Accessible to all taxpayers at no cost
Also accessible to taxpayers who need to issue e-invoices where an Application Programming Interface (API) connection is unavailable 2. Application Programming Interface (API)
An API is a set of programming codes that enables direct data transmission between the taxpayers’ system and the MyInvois system
Requires upfront investment in technology and adjustments to taxpayers' existing systems
Ideal for large taxpayers or businesses with substantial transaction volumes
The e-invoice will be submitted to IRB’s central platform for real-time verification via the proposed Continuous Transaction Controls (CTC) Clearance model.
Upon verification, the CTC model will issue a URL Link containing a QR code to the supplier containing the information on the e-invoice.
The supplier has to print the QR code on the invoice before sending the e-invoice to the buyer.
Purpose
To digitalise tax administration on transactions between a supplier and a buyer
To increase tax compliance
Implementation date (updated on 3 May 2024 as appears on IRB's website)
Implementation of the e-invoice is slated to commence on 1 August 2024 for certain targeted taxpayers and all taxpayers on 1 July 2025 as follows;
Taxpayers with annual revenue of: | Implementation date |
|---|---|
More than RM100 million | 1 August 2024 |
More than RM25 million and up to RM100 million | 1 January 2025 |
All taxpayers | 1 July 2025 |
All information contained herein is summarised based on the information provided on the Malaysian IRB's website, updated on 3 May 2024, and it is intended to provide a general overview of the subject matter. It should not be regarded as a basis for tax advice for specific circumstances or for formulating business decisions. No responsibility for loss to any person acting or refraining from acting as a result of any material in this publication can be accepted by GSK & Associates. Readers should not act based on this publication without seeking professional advice.
Should you require further clarification, please do not hesitate to contact our Partner, Mr Gunalan Appalasamy, at 03-2705 6630 or by email at gunalan@gskassociates.net or the Managers whom you are accustomed to dealing with.
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