e-Invoice Malaysia

E-Invoicing in Malaysia: IRB Implementation Timeline Starting August 2024 for Businesses with Over RM100 Million Annual Revenue (Updated on 5 Aug 2025, based on information from IRB's website and FAQs which were updated on 5 June 2025 and 9 July 2025 respectively).

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. 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

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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.

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Purpose

• To digitalise tax administration on transactions between a supplier and a buyer

• To increase tax compliance

Implementation date (As appears on IRB's website on 5 Aug 2025 which was last updated on 5 June 2025) Note: Taxpayers can opt to voluntarily implement the e-invoice at an earlier date, regardless of the mandatory implementation based on annual revenue 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
More than RM5 million and up to RM25 million	1 July 2025
More than RM1 million and up to RM5 million	1 January 2026
Up to RM1 million **	1 July 2026

• ** Exemption for Businesses with Annual Revenue Below RM500,000: (this information is from IRB's FAQs page 32, No.:89) All persons conducting a business are required to implement e-Invoice in accordance with their respective implementation timeline as outlined under section 1.5 of the e-Invoice Guideline. However, the Government of Malaysia has exempted taxpayers with annual turnover or revenue below RM500,000 from the issuance of e-Invoice.

• Six-month interim relaxation period: Taxpayers are eligible for a six (6) month interim relaxation period from the date of mandatory implementation. During this period, the IRB will take a lenient approach to enforcement, allowing businesses time to adapt their systems and processes. While compliance is still expected, penalties for minor mistakes or delays may not be imposed if genuine efforts to comply are demonstrated.

• Individual e-invoice vs Consolidated e-invoice From 1 January 2026, businesses must issue individual e-invoices for transactions exceeding RM10,000 and the use of consolidated e-invoices for such transactions are not allowed.

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All the information contained herein is summarised based on the information provided on the Malaysian IRB's website and FAQs updated on 5 June 2025 and 9 July 2025 respectively, 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.