E-Invoicing Malaysia

What is e-invoicing?

E-invoicing is the electronic transmission of invoices between businesses and government agencies. It is a more efficient and secure way to process invoices, and it can help to reduce fraud and errors.

When will e-invoicing be mandatory in Malaysia?

E-invoicing will be mandatory for all businesses in Malaysia starting from 1 January 2024.

What are the benefits of e-invoicing?

There are many benefits to e-invoicing, including:

  • Increased efficiency: E-invoicing can help to reduce the time and cost of processing invoices.
  • Improved security: E-invoices are more secure than paper invoices, as they are encrypted and cannot be easily tampered with.
  • Reduced fraud: E-invoicing can help to reduce fraud, as it is more difficult to create and submit fraudulent invoices electronically.
  • Improved compliance: E-invoicing can help businesses to improve their compliance with tax and accounting regulations.

What are the requirements for e-invoicing in Malaysia?

To comply with e-invoicing requirements in Malaysia, businesses will need to:

  • Use a certified e-invoicing platform.
  • Issue invoices in the XML format.
  • Sign invoices with a qualified electronic signature.
  • Submit invoices to the government through the e-Invoicing System (EIS).

How can I learn more about e-invoicing in Malaysia?

The Malaysian government has published a guide to e-invoicing, which can be found on the LHDN website. You can also find more information on the websites of certified e-invoicing platforms.

Businesses that fail to comply with e-invoicing requirements may be subject to penalties, such as fines or imprisonment.

  • What are the different types of e-invoicing platforms available in Malaysia?

There are a number of different e-invoicing platforms available in Malaysia, each with its own features and benefits. Some of the most popular platforms include:

  • MyE-Invoicing
  • ezINVOICE
  • EasyFaktur
  • e-Invoicing Malaysia
  • How do I choose the right e-invoicing platform for my business?

When choosing an e-invoicing platform, you should consider the following factors:

  • The features and benefits of the platform.
  • The cost of the platform.
  • The ease of use of the platform.
  • The support offered by the platform provider.

Malaysia’ e-invoicing follows the Italy model called Sistema di Interscambio (SDI)

The Italy model is a government-led approach to e-invoicing. It is based on the use of a central platform, called the Sistema di Interscambio (SDI), to exchange invoices between businesses and government agencies. The SDI platform is operated by the Italian tax authorities, and it is used to ensure that all invoices are compliant with the Italian e-invoicing regulations.

The Italy model has a number of advantages, including:

  • Centralized control: The SDI platform allows the Italian government to have centralized control over the e-invoicing process. This helps to ensure that all invoices are compliant with the regulations, and it also makes it easier for the government to track and audit invoices.
  • Interoperability: The SDI platform is designed to be interoperable with other e-invoicing platforms. This means that businesses can use any e-invoicing platform that is compatible with the SDI, regardless of the platform that their trading partners use.
  • Security: The SDI platform is designed to be secure. All invoices that are exchanged through the platform are encrypted, and they cannot be easily tampered with.

The Italy model has been successful in reducing fraud and errors in the Italian e-invoicing system. It has also helped to improve the efficiency and transparency of the e-invoicing process.

Here are some of the key features of the Italy model:

  • Use of a central platform: The SDI platform is used to exchange invoices between businesses and government agencies.
  • XML format: Invoices must be issued in the XML format.
  • Qualified electronic signature: Invoices must be signed with a qualified electronic signature.
  • Compliance with Italian regulations: Invoices must comply with the Italian e-invoicing regulations.

The Italy model is a good example of how a government can use e-invoicing to improve the efficiency and transparency of its tax system. It is a model that could be adapted by other countries that are looking to implement e-invoicing.

What about PEPPOL?

Malaysia is planning to use PEPPOL as part of its e-invoicing system. PEPPOL is a global network that allows businesses to exchange invoices and other documents electronically. It is a secure and reliable platform that is used by businesses in over 60 countries.

The Malaysian government has said that it plans to use PEPPOL as a way to improve the efficiency and transparency of its e-invoicing system. PEPPOL will allow businesses in Malaysia to exchange invoices with businesses in other countries that use PEPPOL, which will help to boost trade and economic growth.

The Malaysian government has not yet announced when PEPPOL will be fully implemented in Malaysia. However, it is expected to be implemented in phases starting in 2023.

Here are some of the benefits of using PEPPOL in Malaysia:

  • Increased efficiency: PEPPOL can help to reduce the time and cost of processing invoices.
  • Improved security: PEPPOL is a secure and reliable platform.
  • Reduced fraud: PEPPOL can help to reduce fraud, as it is more difficult to create and submit fraudulent invoices electronically.
  • Improved compliance: PEPPOL can help businesses to improve their compliance with tax and accounting regulations.

If you are a business in Malaysia, you should start planning for the implementation of PEPPOL. You can find more information about PEPPOL on the Malaysian government’s website.