E-invoicing serves as a digital substitute for paper invoices and is being adopted globally, with Malaysia also embracing this trend. The E-invoice Model by the Inland Revenue Board of Malaysia (IRBM) is designed to streamline processes, enhance efficiency, and reduce tedious tasks for businesses.

You can comply with the E-invoicing mandate in Malaysia by carrying out these activities:

1.  Assess applicability: Before diving into E-invoicing, consider whether it’s mandatory for your business or if you’re choosing to adopt it voluntarily. Next, examine your current invoicing process and identify opportunities to save time and money.
2. E-invoicing solution: Choose an E-invoicing solution that fits your needs and budget and which can be easily integrated with your ERP system like S1AsiaPac.
3.  Train your staff: Prepare your team on how to use the new E-invoicing system. They’ll need to know how to create, send, and track e-invoices. 

By taking these steps, you can make sure your business is ready for the switch to E-invoices.

The implementation of E-invoicing in Malaysia is set to transform business operations and drive economic growth. This transition will enhance efficiency, cost savings, and overall economic performance. Companies embracing e-invoicing will gain a competitive edge. Through the digitization of invoices, businesses can streamline operations, reduce paperwork, and improve transaction accuracy.

To facilitate a seamless transition and allow sufficient time for adaptation, the implementation of e-Invoicing will occur in stages. Initially, the adoption of e-Invoicing will be determined by annual turnover or revenue (as per audited financial statements for 2022). However, e-Invoicing will be mandatory for all taxpayers starting from 1st July 2025, irrespective of their sales volume.

Below are the compulsory thresholds for e-invoicing in Malaysia, along with their revised implementation dates in Budget 2024

 To facilitate a smoother transition to E-invoicing, the Inland Revenue Board of Malaysia (IRBM) has established two methods for sending e-invoices.

MyInvois Portal: The MyInvois Portal is a web-based platform that enables businesses to create and submit invoices individually or in bulk. This option is well-suited for small businesses with lower transaction volumes.

API Integration: API integration allows businesses to link their existing ERP system directly to the IRB’s system for automated e-invoice transmission. This option is recommended for larger businesses with higher transaction volumes. There are three API models available:

1. Directly connect your business’s ERP system to MyInvois.
2. Utilize a Peppol service provider.
3.  Engage a non-Peppol technology provider.

Selecting the Appropriate Approach

The optimal method for your business will be determined by your unique requirements and transaction volume. For small businesses with limited transaction volumes, the MyInvois Portal offers a straightforward and cost-effective solution. Conversely, for large businesses with significant transaction volumes, API integration provides a more efficient and scalable option.