top of page
E-Invoice Malaysia.png
 

E-Invoicing Malaysia - The workflow

 

Introduction
​

An e-Invoice is a digital representation of a transaction between a supplier and a buyer. e-Invoice replaces paper or electronic documents such as invoices, credit notes, and debit notes.

​

An e-Invoice 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.

 

Is e-invoicing mandatory in Malaysia?

Malaysia will introduce a countrywide e-invoicing mandate from 1 August 2024.

 

The Malaysian government plans to introduce a Centralized Pre-Clearance CTC model on all transactions to increase efficiency and strengthen the tax administration. A gradual introduction of the obligation will commence in August 2024 and end in July 2025.

 

 

An Overview of Workflow of E-Invoicing

Today we will highlight the workflow of e-invoicing in general.

​

1. Issuance of e-Invoice

When a sale or transaction is made (including e-Invoice adjustments), the supplier creates an e-Invoice and shares it to IRBM via MyInvois Portal or Application Programming Interface (API) for validation.

1.1 Myinvois Portal

 

  • A portal hosted by IRBM

  • Accessible to all taxpayers at no cost

 

1.2 Application Programming Interface (API)

 

  • An API is a set of programming code that enables direct data transmission between the taxpayers’ system and MyInvois system

  • Requires upfront investment in technology and adjustments to taxpayers existing systems

  • Ideal for large taxpayers or businesses with substantial transaction volumes

 

2. Validation of e-Invoice

IRBM validation is performed in real-time, ensuring that the e-Invoice meets the necessary standards and criteria.

Once validated, the supplier will receive a Unique Identifier Number from IRBM via MyInvois Portal or API.

The Unique Identifier Number will allow traceability by IRBM and will reduce instances of tempering with the e-Invoice.

​

3. Notification of validated e-Invoice

IRBM will inform both the supplier and buyer once e-Invoice has been validated via MyInvois Portal or APIs.

​

4. Sharing of e-Invoice

Upon validation, the supplier is obliged to share the cleared e-Invoice (embedded with a QR code) with the buyer.

The QR code can be used to validate the existence and status of the e-Invoice via IRBM’s official portal.

​

5. Rejection or cancellation of e-Invoice

Upon issuance of e-Invoice, a stipulated period of time is given to:

​

  • Buyer to request for rejection of the e-Invoice

  • Supplier to perform cancellation of e-Invoice

 

Rejection requests or cancellations must be accompanied by justification.

​

6. MyInvois Portal

Supplier and buyer will able to obtain a summary of the e-Invoice transactions via MyInvois Portal.

 

 

 

e-Invoice Guideline and Catalogue

bottom of page