As of August 1, 2024, Malaysia implemented mandatory electronic invoicing for all commercial transactions, including B2B (Business-to-Business), B2C (Business-to-Consumer) and B2G (Business-to-Government). This initiative is part of the Twelfth Malaysia Plan (12MP), which seeks to strengthen the digital service infrastructure, digitize the country's tax administration and position Malaysia as a benchmark in the digital economy of Southeast Asia.
Electronic Invoicing in Malaysia: implementation schedule
The adoption of electronic invoicing in Malaysia is taking place in a phased manner with the following key dates:
• August 1, 2024: Companies with an annual turnover exceeding MYR 100 million.
• January 1, 2025: Companies with revenues between 50 and 100 million MYR.
• July 1, 2025: Companies with revenues between 25 and 50 million MYR.
• January 1, 2026: All other companies, except companies with annual sales of less than 150,000 MYR, (which will be exempt from the regulations).
This gradual approach allows companies to progressively adapt to the new system. In fact, the competent authorities have announced a delay until 2026 in making e-invoicing mandatory for SMEs with an annual turnover between 150,000-500,000 MYR.
Features of Mandatory Electronic Invoicing in Malaysia
Model and platform for the exchange of electronic invoices: Continuous Transaction Control (CTC) model, which means that all invoices must be validated by the tax authority and sent to the platform MyInvois (developed by the Tax Agency). Once validated, they are assigned a unique identifier and a QR code, guaranteeing their authenticity and traceability.
At the international level, interoperability is guaranteed through certified operators of Peppol Access Points, accredited by the Malaysia Digital Economy Corporation (MDEC). This way of facilitating international transactions through Peppol Access Points is increasingly common and we have seen it approved by different governments such as United Arab Emirates, Belgium or UK (the latter giving preference to Tradeshift, Brait's partner).
These operators, similar to what happens in other countries, can generate the complete invoice in electronic format, send it to the final recipient and comply with the obligation to send it to the IRBM platform. Once the IRBM validates that invoice, it will return it to the Access Point, which will transmit it to the recipient's Access Point.
Format: XML or JSON and PINT (Peppol International Invoice)
Archived: 7 years old.
Reporting: Mandatory. Through the MyInvois platform developed by the Inland Revenue Board of Malaysia (IRBM).
Electronic Invoicing Software or Program in Malaysia
With INVICTIA by Brait, our connector for SAP, you can adapt your system to electronic invoicing in Malaysia (or another country) and have everything centralized in one single platform, since we work with certified operators (such as, for example, EDICOM).
In addition, you will have the constant support of a expert team in electronic invoicing at a global level that will accompany your company at all stages: analysis and requirements of your SAP system, particular needs, integrations with other tools, customization of workflows, business rules, etc.
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