What is e-Invoicing in Malaysia?

Malaysia’s e-Invoicing system is a government-led initiative designed to modernize the country’s invoicing process through digital means. This system aims to enhance the efficiency of tax administration management by transitioning from traditional paper-based invoicing to a streamlined electronic format.

In that sense, speed and accuracy are paramount. The e-Invoicing Malaysia is set to transform how businesses handle their invoicing procedures – significantly reducing paperwork and increasing productivity.

The e-Invoicing Malaysia also serves as a comprehensive digital platform that enables businesses to create, send, receive, and manage invoices electronically. This shift to a digital format allows for seamless integration into existing financial systems, making it easier for businesses to keep track of their invoicing activities.

By leveraging our Aspert AiNexus technology, we can ensure that your financial transactions are handled swiftly and accurately. This is crucial for maintaining efficient operations in today’s fast-paced business environment. Plus, our e-Invoicing system is designed to be user-friendly, accommodating businesses of all sizes.

Reduce Manual Efforts and Human Errors

Unified invoicing process through creation and submission of transaction document & data electronically.

Facilitate Efficient Tax Filing

Seamless system integration for efficient and accurate tax reporting. Aspert's AiNexus integrates well with other ERP systems for the best reporting ecosystem.

Streamline Operational Efficiency

Enhanced efficiency and significant time and cost savings. Manual work for operations are significantly reduced and are replaced with efficient automation.

Digitalise Tax and Financial Reporting

Aligns financial reporting and processes to be digitalised with industry standards. Reports are also generated with clarity and conciseness.

Introducing AiNexus | Your New E-Invoicing Malaysia Assistant

Streamline your e-Invoicing Malaysia process with Aspert Innovation.

Aspert’s AiNexus e-invoice system will be integrated between LHDN’s platform and any 3rd party system, allowing companies to accept and reject invoices with email notification.

LHDN/IRBM Compliant​

AiNexus is compliant with Malaysia's government rules and regulations.

ERP Integration​

Eliminate manual tasks by integrating AiNexus to your ERP system and integrate e-invoices automatically.

User Friendly​

Simple user interface makes it easy for users to navigate the system.​

Entities Required to Comply with or Exempt from E-Invoicing

It’s a common misconception that everyone must comply with the e-invoicing process. However, certain exemptions apply. In most cases, regulatory and local authorities are exempt from taxation. To give you a clearer picture, we’ve outlined the entities that are either required to comply with or exempt from the e-invoicing process.

Entities Required to Comply

  1. Associations
  2. Body of persons
  3. Branches
  4. Business trusts
  5. Co-operative societies
  6. Corporations
  7. Limited liability partnerships
  8. Partnerships
  9. Property trust funds
  10. Property trusts
  11. Real estate investment trusts
  12. Representative offices and regional offices
  13. Trust bodies and Unit trusts

Exempted Entities

  1. Ruler and Ruling Chief
  2. Former Ruler and Ruling Chief
  3. Consorts of Rulers or Former Rulers
  4. Government Bodies
  5. Facilities Provided by Government Entities
  6. Consular Offices and Personnel
  7. Local Authority
  8. Statutory Authority and Statutory Body
  9. Individuals who are not conducting business
  10. Taxpayers with an annual revenue or turnover of less than RM 150,000

E-Invoicing Implementation Timeline

It is important for taxpayers to be aware of the implemented timeline by Malaysia’s governing body regarding their submission of e-invoices.

This is mainly to ensure everything is planned out properly and the right entities have time to organise and prepare the necessary e-documents. The considerations taken into account for these are: the turnover and revenue thresholds.

In the table below, we have carefully listed out the different phases for e-invoicing in Malaysia and how it applies to different business entities based on annual revenue variations.

For more information on how to process your e-invoices as a starter, do check out our guide to e-invoicing.

Phase 1

Implementation Date
August 1, 2024

Targeted Taxpayers

Taxpayers with their annual turnover or revenue that exceed or is more than RM100 million

Phase 2

Implementation Date
January 1, 2025

Targeted Taxpayers

Taxpayers with their annual turnover or revenue ranging between RM25 million to RM100 million

Phase 3

Implementation Date
July 1, 2025

Targeted Taxpayers

Taxpayers with their annual turnover or revenue ranging between RM500K to RM25 Million

Phase 4

Implementation Date
January 1, 2026

Targeted Taxpayers

All businesses except those with an annual turnover lesser than RM150K

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    Frequently Asked Questions About
    E-Invoicing Malaysia

    Yes, all businesses will be required to issue e-Invoice in accordance with the phased mandatory implementation timeline, which is based on the business’ annual turnover or revenue threshold. 

    Yes, there is a 72-hour timeframe for the e-Invoice to be cancelled by the supplier. Refer to sections 2.3.6 or 2.4.5 of the IRBM e-Invoice Guideline for further details.

    The QR code will only contain a link to the validated e-Invoice. Hence, any device (e.g., mobile camera, QR code scanner application) capable of scanning a QR code will be able to scan the QR code.

    Malaysia offers two main models for e-Invoicing:

    1. MyInvois Portal: Hosted by the Inland Revenue Board of Malaysia (IRBM), this portal allows businesses to create, send, and manage invoices electronically through a user-friendly web interface. It is an accessible option for businesses of all sizes, providing a straightforward way to comply with e-Invoicing requirements.

    2. Application Programming Interface (API): This model enables integration directly into IRBM’s systems. Businesses can connect their existing financial and accounting software with IRBM’s e-Invoicing system via APIs, allowing for seamless and automated invoicing processes. This option is ideal for businesses seeking a more customized and automated solution.