Unlock Efficiency and Compliance: Your Guide to LHDN E-Invoicing

Discover how DespaQ simplifies LHDN E-Invoicing, streamlining your invoicing process for greater efficiency and compliance. Learn how our intelligent platform can help you navigate the complexities of electronic invoicing seamlessly.

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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

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  • Improve Efficiency

  • Cost Reduction & Complexities

  • Transact Internationally

  • 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.


Download guidelines

Proposed Timelines

LHDN proposed timeline lays out a strategic roadmap to ensure timely execution and success to the initiative.

Phase 1 (>100MIL)
June 1st, 2024
Go Live
Taxpayers with an annual turnover or revenue of more than RM100 million
Phase 2 (>50MIL)
January 1st, 2025
Taxpayers with an annual turnover or revenue of more than RM50 million and up to RM100 million
Phase 3 (>25MIL)
January 1st, 2026
Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM50 million
Phase 4 (All)
January 1st, 2027
All taxpayers and certain non-business transactions
LHDN E-invoicing

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.

JavaScript Object Notation (JSON)
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.

Business Details

Here, essential business information such as company names and registration numbers is recorded.

Contact Number

Contact numbers, including phone and fax, are entered in this section.

Invoice Details

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.

Party Details

Detailed information about the parties, such as their names and tax identification numbers (TIN), is recorded.

Payment Information

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.

Unique ID

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.

Get Started with DespaQ

Explore DespaQ's specialized solutions designed to simplify compliance with Malaysia's e-Invoice mandates. Our experienced team keeps you up to date with ever-changing regulations, offering tailored strategies for businesses of all sizes. Streamline operations, reduce paperwork, and ensure seamless adherence to e-Invoicing requirements.

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