Unlock Efficiency and Compliance: Your Guide to LHDN E-InvoicingContact us
Malaysia's e-Invoicing Revolution
Simplifying Taxes for Enhanced Tax Compliance
The Malaysian government is advancing the adoption of e-Invoicing among businesses. This strategic move is not only aimed at promoting tax compliance but also at harnessing the advantages of digitalizing various business operations. The adoption also emphasizes the crucial role of the e-Invoicing initiative in addressing tax revenue losses associated with the shadow economy.
By June 2024, businesses with annual sales exceeding RM100 million will be required to adopt e-Invoicing, signifying a significant leap towards modernizing financial practices and fostering a fair tax ecosystem.
Benefits of E-Invoice
Discover the Advantages of Streamlining Your Billing Process with Electronic Invoicing
Cost Reduction & Complexities
Faster Payment Cycle
Malaysia e-Invoice Guidelines
The long-awaited guidance from LHDN became available on July 21, 2023. LHDN has dedicated a webpage to the e-Invoice initiative, serving as a hub for updates and news. If you don't have access to the guide, you can easily download it via the highlighted link.
Expect ongoing updates, including details on how retail-related invoices will differ from B2B transactions. To ensure a seamless transition, the e-Invoice rollout will occur in stages, carefully considering turnover thresholds.
This approach provides businesses with ample time to adapt. The e-Invoice implementation timeline on the right offers a visual guide for your reference and action.
LHDN proposed timeline lays out a strategic roadmap to ensure timely execution and success to the initiative.
June 1st, 2024
January 1st, 2025
January 1st, 2026
January 1st, 2027
Let us Guide you with E-Invoicing Compliance
This overview outlines the e-Invoice workflow, commencing with a transaction or sale, where the supplier issues an e-Invoice via the MyInvois Portal or API. The process extends to the storage of cleared e-Invoices in LHDNM's database, allowing taxpayers to access their historical e-Invoices. Our primary focus centers on the e-Invoice model facilitated through the API. The API empowers taxpayers to directly submit e-Invoices to LHDNM.
To configure the API integration, taxpayers set up call-backs (specific addresses within their systems) and access LHDNM APIs using the Digital Certificate issued by LHDNM as the authentication mechanism. The e-Invoice structure is thoughtfully designed to accommodate B2B, B2G, and B2C transactions, streamlining e-Invoice processes for both businesses and individual taxpayers.
Two formats are available for transmitting e-Invoice data:
Extensible Markup Language (XML)
XML is a text-based format for representing structured information, widely used for sharing structured data. XML syntax adheres to strict rules, rejecting files with errors and prompting rectification.
JSON is a lightweight, text-based data interchange format, easier to read and write compared to XML. It is language-independent, allowing JSON data code to be written in various programming languages.
LHDN e-Invoice Required Fields
There are 53 data fields that are required to issue an e-Invoice. These fields are grouped into nine (9) categories:
This field collects information related to the location and address details of the parties involved in the invoice.
Here, essential business information such as company names and registration numbers is recorded.
Contact numbers, including phone and fax, are entered in this section.
This category captures key invoice-related information, including invoice numbers and dates.
Parties involved in the transaction, such as the seller and buyer, are identified here.
Detailed information about the parties, such as their names and tax identification numbers (TIN), is recorded.
This section gathers payment-related information, including payment terms and banking details.
Products / Services
Details about the products or services being invoiced, including descriptions, quantities, and prices, are listed here.
A unique identification number for the e-Invoice is recorded in this category.
In addition, for specific instances, an attachment will be required to be submitted as part of the e-Invoice to LHDNM.