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
Download e-Invoice Guideline Version 2.1 (published on 28 October 2023) https://www.hasil.gov.my/media/iqzj1llk/irbm-e-invoice-guideline-version-21.pdf
Download e-Invoice Specific Guideline Version 1.1 (published on 28 October 2023) https://www.hasil.gov.my/media/iu1ip1x1/irbm-e-invoice-specific-guideline-version-11.pdf
Download e-Invoice Catalogue (published on 12 October 2023) https://www.hasil.gov.my/media/sepdgaj3/data-catalogue-for-e-invoice-as-at-12-october-2023.xlsx
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