The e-Invoicing system is a significant step forward for the Malaysian government's digitilization agenda. It is expected to have a positive impact on the economy and help to improve the efficiency of the tax system. The Malaysia LHDN E-Invoicing system is designed to improve the efficiency and transparency of the invoicing process. It will also help to reduce tax evasion and fraud.

What is E-Invoice?

LHDN E-Invoice is not a human-readable PDF invoice. It is a machine-readable format. Malaysia LHDN e-Invoice only acceots machine-readable XML, JSON files, not PDF, DOC, JPEG, or email.

Every invoice must be be sent to LHDN for approval and validation by the Inland Revenue Board (IRB) before it can be printed as a verified invoice for your customer, IRBM will validation includes TIN and e-Invoice data structures/format. Upon validation of the e-Invoice, the supplier is obliged to share the cleared e-Invoice with the buyer after embedding the validated link (provided bt IRBM) in a form of QR code on the e-Invoice. The QR code can be used to validate the existence and status of the e-Invoice via MyInvois Portal.

How Long Does E-Invoice Validation Take?

Refer to the IRBM e-Invoice guidelines version 1.0, IRBM will develop the Continuous Transaction Control (CTC) Model where the validation is done instantly (or near-instantly) by IRBM.

Who Are Required To Implement E-Invoice?

Businesses in Malaysia can voluntarily adopt E-Invoicing with the Inland Revenue Board (LHDN) from August 1, 2024, E-Invoicing will be mandatory for all business based on their turnover or revenue thresholds, and will be implemented in phases. Businesses with annual turn over more than RM100 milion the original implementation date of June 1, 2024 has been postponed to August 1, 2024. However, following the budget annoucement by the Prime Minister on October 13, 2023, the implementation date for all other businesses has been bring forward by 18 months early to July 1, 2025. The implementation details are as follows:


What E-Invoice Information Will Be Store in IRBM Database?

Every invoice issued must include the following information, which will be stored in the IRBM Database. This information is required to ensure the authenticity, integrity, and traceability of e-Invoices. It possible also used by the tax authorities to verify the accuracy of tax returns.

1. General Information

This includes the invoice number, e-Invoice type, e-Invoice purpose, e-Invoice date(current date)

2. Supplier & Customer Information

This includes the supplier and customer's TIN, name, address, email address, 5 digit MSIC code, MSIC description, website, contact person, and contact number, company registration number/individual myKad number/passport, SST registration number, currency, exchange rate.

3. Item Information

This includes the description, quantity, UOM, unit price, discount rate, discount amount, tax type, tax code, tax rate and tax amount, tariff code, subtotal, total excluding tax, total including tax for each item on the invoice.

4. Validation Information

This includes the IRBM Unique Identifier Number, validation date and time, and validation status of the invoice.

5. Digital Certificates/Signature

Digital Certificates will be issued to taxpayers to enable them to attach digiral signatures to e-Invoices. The digital signature will verify that the submitted e-Invoice data orginates from a specifiv taxpaper.

6. Additional Information (Optional)

This may include payment mode, supplier bank account, payment terms, payment amount, payment date, payment reference number, bill reference number, and other relevant information.

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