- Malaysia will enforce mandatory electronic invoicing regulations starting in June 2024 for select businesses based on their annual revenue, with plans for all companies to implement the new system by 2027.
- The e-invoicing rules apply to all domestic and cross-border transactions.
- Currently, e-invoicing in Malaysia is voluntary, but a written agreement is required from the buyer before the supplier can issue an electronic invoice. Malaysia operates a post-audit e-invoicing model, but this will change with the new National e-Invoicing system to come into effect in 2024.
- The new e-invoicing system will be obligatory and is a hybrid of the centralized continuous transaction control (CTC) model paired with the PEPPOL network.
- The new system will apply to all tax-registered businesses in Malaysia and government entities, including business-to-business (B2B), business-to-government (B2G), and business-to-consumer (B2C) transactions.
- The timeline for implementation is staggered, with mandatory implementation for businesses with an annual turnover greater than MYR 100 million starting in June 2024, and becoming statutory for all businesses, including B2C transactions, by January 2027.
- For B2C transactions, business entities will be required to issue e-receipts for all transactions.
- Currently, there are no predefined ways to send compliant e-invoices, but in the new mandatory e-invoicing environment, invoices must be created with the appropriate data and sent for verification in XML format.
Source Storecove
