Understanding the process for exchanging e-invoices in Malaysia

In recent years, e-invoicing in Asia has become one of the fastest growing markets in the world. Most Asian countries have begun regulating e-invoice issuance through their own platforms or the PEPPOL network.

The Inland Revenue Board of Malaysia (IRBM) has played a significant role in making e-invoicing a reality in Malaysia. The Inland Revenue Board of Malaysia (IRBM) has released several proposals for the implementation of its B2B e-invoicing system through the new MyInvois portal or an API interface.

The e-invoicing model in Malaysia will be based on Continuous Transaction Control (CTC). Additionally, a PEPPOL option will be available for invoice exchange, and a QR code must be included on the invoice sent to the customer.

When will e-invoicing go live in Malaysia?

The pilot project, which includes over 50 companies testing the new CTC e-invoicing model, was originally scheduled for launch in January but has been postponed to May.

The B2B e-invoicing regime will be implemented in three instalments: August 2024, January 2025, and July 2025, after which it is expected to be extended to all taxpayers.

In contrast, B2C transactions via e-Receipt will become mandatory from 2027.

Who is required to use e-invoicing in Malaysia?

The implementation has been divided into three timelines by the IRBM. In the short term, those required to use e-invoicing are taxpayers with an anual turnover of MYR100 million or more, as well as taxpayers with an annual turnover between MYR100 million and MYR25 million.

What options are available for e-invoicing in Malaysia?

Taxpayers have two options for sending and receiving invoices, depending on their business needs and specific situation: the MyInvois portal, a free portal provided by the IRBM that is accessible to all taxpayers and those who need to issue electronic invoices in Malaysia when no API connection is available, or the API.

This is an application programming interface (API) that connects the taxpayer's system with MyInvois. It requires an initial investment and some adjustments to the taxpayers' existing systems. The API is particularly suitable for large taxpayers or businesses with a significant volume of transactions.

What is the process for issuing and receiving e-invoices in Malaysia?

The e-invoice exchange process in Malaysia comprises six steps.

Firstly, the supplier creates an e-invoice when a transaction is made and shares it with the IRBM through the MyInvois Portal or API for validation. Secondly, the e-invoice is validated. The IRBM performs validation of the e-invoice almost in real-time to ensure compliance with necessary standards and criteria. Upon validation, the supplier will receive a unique identification number from the IRBM, ensuring traceability.

Notification of the validated e-invoice follows. Once the e-invoice has been validated through the MyInvois Portal or the APIs, the IRBM will inform both the supplier and the buyer.

The supplier is then obliged to share the validated e-invoice (with a QR code) with the buyer. The QR code can be used to validate the existence and status of the e-invoice via the MyInvois Portal.

After the e-invoice has been issued, the buyer is given a specific period of time to request rejection or for the supplier to cancel the e-invoice.

Both requests must be accompanied by justifications. Additionally, the supplier and the buyer can access a summary of the e-invoice transactions through the MyInvois Portal.

SERES, an ideal partner for multi-country projects

For companies operating in multiple countries, compliance with international obligations can be achieved through a global e-invoicing solution that is certified in all relevant countries. The SERES multi-country e-invoicing solution offers several benefits, including:

  • Adhere to legal and technical requirements in each country, ensuring compliance.
  • Streamline workflows between subsidiaries or companies in different countries, making it easier to share information.
  • Real-time visibility of subsidiary information, enabling efficient management of treasury, receivables and payables.
  • Access to a global operator, eliminating the need for each subsidiary to adapt to different providers and providing support throughout the activation process.

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Key numbers

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+30 years

of experience
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+750 MM

€/year managed
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3 Millions

active users
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+1.000 M

documents/year exchanged
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connected companies
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countries with exchange

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