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  • Writer's pictureGSK & Associates

e-Invoice Malaysia

Updated: May 3

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:

  1. 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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