Inland Revenue Board confirms phased introduction June 2024 to Jan 2027 mandatory CTC e-invoicing
Malaysia is to become the latest country to introduce mandatory electronic invoicing for Sales and Services Taxes from 1 June 2024 to 1 January 2027. This will cover B2C, B2B and B2G transactions, including imports and exports. It is only applicable to resident taxpayers.
It will be a phased mandatory introduction by the Inland Revenue Board of Malaysia (LHDNM).
- myTax portal adopted as free e-invoicing service
- January 2024 option to voluntarily adopt e-invoicing with LHDNM;
- June 2024 taxpayers with annual turnover of MYR 100 million and above;
- January 2025 annual turnover of MYR 50 million and above;
- January 2026 annual turnover of MYR 25 million and above; and
- January 2027 all other taxpayers.
- January 2027 B2C transactions via e-Receipt live digital reporting
Malaysia will operate a Continuous Transaction Control CTC model, requiring sales invoices (XML) to be first sent to the tax authorities for verification via the government’s API. Once approved, the invoice is given a unique digital Certification Serial Number. Once returned to the seller, only then can it be sent to their customer in any format. There will be a PEPPOL option for this exchange of invoices. A QR Code must be included with the invoice sent to the customer.