E-Invoicing in malaysia

Q: Is e-Invoicing mandatory for all businesses in Malaysia?

B2B: Yes. E-Invoicing will be mandatory for all businesses in Malaysia, with a phased implementation based on annual revenue. The requirement applies to all domestic business-to-business (B2B) transactions. B2G: Yes. E-Invoicing is mandatory for businesses supplying to government entities via MyInvois. B2C: No, but businesses may issue e-Invoices voluntarily upon customer request.

Q: Is there a phased implementation? What are the key deadlines for e-Invoicing compliance in Malaysia?

1 August 2024: Taxpayers with an annual turnover or revenue of more than RM100 million 1 January 2025: Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM100 million 1 July 2025: Taxpayers with an annual turnover or revenue of more than RM5 million and up to RM25 million 1 January 2026: Taxpayers with an annual turnover or revenue of more than RM1 million and up to RM5 million 1 July 2026: Taxpayers with an annual turnover or revenue of up to RM1 million

Q: What are the approved e-Invoicing formats in Malaysia?

UBL 2.1: Structured XML-based standard for interoperability JSON: API-based e-Invoice format

Malaysia is entering a new era of digital tax compliance with the phased rollout of a mandatory e-invoicing regime. Under the MyInvois platform, businesses must submit invoices for real-time validation by the tax authority, ensuring legal compliance before issuance. To stay ahead, companies should ensure their systems are ready to meet Malaysia’s structured e-invoicing requirements.

Country Situation

General Description

Malaysia is implementing a nationwide e-invoicing system, led by the Inland Revenue Board of Malaysia (LHDN), to modernise tax administration and promote digital compliance. Under the framework, businesses must submit invoice data electronically to the tax authority for validation before sharing it with customers.

E-invoices must be submitted in a structured format via API integration with MyInvois. Malaysia also permits the use of the Peppol network via certified Access Points enhancing interoperability, particularly for companies operating regionally.

Once approved, the invoice is returned with a Unique Identifier (UUID) and a QR code, confirming its authenticity. These cleared e-invoices are then used for downstream activities such as tax reporting, accounting, and archiving.

Malaysia’s phased approach ensures businesses have time to adapt to the new system, which aims to increase transparency, reduce fraud, and streamline commercial processes nationwide.

FAQs

Is e-Invoicing mandatory for all businesses in Malaysia?

B2B: Yes. E-Invoicing will be mandatory for all businesses in Malaysia, with a phased implementation based on annual revenue. The requirement applies to all domestic business-to-business (B2B) transactions.
B2G: Yes. E-Invoicing is mandatory for businesses supplying to government entities via MyInvois.
B2C: No, but businesses may issue e-Invoices voluntarily upon customer request.

Who is the governing entity overseeing e-Invoicing in Malaysia?

The Inland Revenue Board of Malaysia (IRBM) is responsible for setting and enforcing e-Invoicing regulations. The MyInvois System, managed by IRBM, serves as the central platform for e-Invoice validation and approval.

Is there a phased implementation? What are the key deadlines for e-Invoicing compliance in Malaysia?

1 August 2024: Taxpayers with an annual turnover or revenue of more than RM100 million
1 January 2025: Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM100 million
1 July 2025: Taxpayers with an annual turnover or revenue of more than RM5 million and up to RM25 million
1 January 2026: Taxpayers with an annual turnover or revenue of more than RM1 million and up to RM5 million
1 July 2026: Taxpayers with an annual turnover or revenue of up to RM1 million

Is there a national e-Invoicing platform in Malaysia?

Yes, Malaysia operates a centralised e-Invoicing platform, MyInvois, managed by IRBM.

All invoices must be submitted to MyInvois for validation before being issued to the recipient.

Invoice validation is mandatory, meaning no invoice is legally recognised until MyInvois assigns a Unique Identifier Number (UUID) and QR Code.

Do businesses need to register for e-Invoicing compliance in Malaysia?

No specific registration is required, but businesses must integrate with MyInvois API or use the MyInvois Portal for invoice submission.

E-Invoicing Workflow & Technical Aspects

1. The supplier generates an invoice in an IRBM-compliant format - UBL 2.1 or JSON

2. The invoice is submitted via API (or manually via the MyInvois Portal)

3. IRBM validates the invoice and assigns a:
- Unique Identifier Number (UUID)
- Validation timestamp
- QR Code for verification

4. The validated invoice is sent to the buyer

5. The invoice is archived for 10 years as required by law

Is Peppol available, required, or recommended for e-Invoicing in Malaysia?

Peppol is available but not mandatory for businesses. This is available to use after the invoice has been validated by IRBM.

What are the approved e-Invoicing formats in Malaysia?

UBL 2.1: Structured XML-based standard for interoperability

JSON: API-based e-Invoice format

What is the process for foreign companies issuing e-Invoices in Malaysia?

Foreign companies are not required to issue e-Invoices via MyInvois unless they have a business presence in Malaysia.

If a foreign supplier does not issue a MyInvois e-Invoice, the Malaysian buyer must self-bill and submit the invoice to MyInvois.

The invoice must include:
- Foreign supplier’s details (name, address)
- Placeholder TIN ("EI00000000020") if the supplier does not have a Malaysian TIN
- Transaction value (foreign currency & RM equivalent if required)

Does Malaysia require real-time reporting of invoices?

Yes. Malaysia operates a centralised exchange CTC model meaning:

- All invoices must be validated by MyInvois before they are legally issued
- Real-time validation & rejection handling are built into the system
- Any rejected invoices must be corrected and resubmitted promptly

Do non-resident companies need to comply with e-invoicing in Malaysia?

Foreign businesses are not required to issue MyInvois e-Invoices for sales to Malaysia. However, if a foreign supplier does not issue an e-Invoice, the Malaysian buyer must self-bill via MyInvois.

What are the e-invoicing requirements for cross-border transactions in Malaysia?

Exports are voluntary, but imports require e-Invoicing, either by the foreign supplier (if using MyInvois) or by the Malaysian buyer via self-billing.

Is an electronic signature required for e-invoices in Malaysia?

Yes. Electronic signatures are mandatory to ensure authenticity and integrity.

How should e-invoices be archived to comply with Malaysia’s regulations?

10 years. Invoices must be:
- Digitally accessible
- Readable & tamper-proof
- Stored in XML, JSON, or UBL 2.1 formats
- Retrievable for tax audits upon request by IRBM

How can ecosio help my business comply with e-invoicing in Malaysia?

- Automated submission & validation via MyInvois API integration

- Seamless ERP compatibility with platforms like SAP, Oracle, Microsoft Dynamics, and more

- Onward invoice delivery via Peppol, SMTP and other transmission protocols

- Real-time monitoring & validation tracking to prevent compliance issues

Country Specs

Mandate Status	Mandatory, Staggered Rollout
Mandate Scope	B2B, B2G, B2C
Model Type	Clearance
Government Entity	Inland Revenue Board Malaysia (IRBM)
Formats	JSON, UBL 2.1
Infrastructure / Platform	MyInvois Platform
E-signature Required	Yes
Key Deadlines	1 August 2024: Taxpayers with an annual turnover or revenue of more than RM100 million 1 January 2025: Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM100 million 1 July 2025: Taxpayers with an annual turnover or revenue of more than RM5 million and up to RM25 million 1 January 2026: Taxpayers with an annual turnover or revenue of more than RM1 million and up to RM5 million 1 July 2026: Taxpayers with an annual turnover or revenue of up to RM1 million
AR Mandatory	Yes
AP Mandatory	Yes
Peppol Available	Yes
Domestic Transactions	Yes
Cross-border Transactions	Exports: Malaysian seller issues via MyInvois. Imports: Malaysian buyer issues self-billed e‑invoice.
Archiving Period	7 years
Archiving Abroad	Allowed under certain conditions

Contact an expert

Feeling lost or need more info about this e-invoicing mandate? ecosio can help!

Our team of e-invoicing experts is ready to guide you through everything needed to stay compliant—not just with this mandate, but with all current and upcoming e-invoicing requirements worldwide.
Send us your questions. We’ll provide clear, actionable answers!

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