The Malaysian authorities have confirmed that there will be no postponement for the implementation of the upcoming e-invoicing mandate. Starting from August 1, 2024, Phase 1 companies with an annual turnover of more than RM100 million will be able to access the production environment. The schedule for the Pre-Clearance E-Invoicing System in Malaysia is as follows:
- August 1, 2024: Taxpayers with an annual turnover exceeding MYR 100 million
- January 1, 2025: Taxpayers with an annual turnover between MYR 25 million and MYR 100 million
- July 1, 2025: All other taxpayers
- June 28, 2025: Release of new guidelines, updated FAQ, and Software Development Kit
The LHDN has issued version 3.0 guidelines, a Software Development Kit, and Frequently Asked Questions for the August 2024 launch of its Continuous Transaction Control (CTC) e-invoicing model, MyInvois. This system requires sales invoices in XML format to be submitted to the tax authorities for verification via the government’s API. Upon approval, the invoice receives a unique digital Certification Serial Number and can be sent to the customer in any format. There will be an option to use PEPPOL for this invoice exchange. A QR Code must be included on the invoice sent to the customer.
For B2C transactions where e-invoices are not required by consumers for tax purposes, suppliers may issue standard receipts or invoices as per current practices. After a specified period, suppliers must aggregate these receipts or invoices and issue a combined electronic invoice to document the transactions made with consumers.
Many Malaysian micro, small, and medium-sized enterprises (MSMEs) are concerned about the implementation of e-invoicing. They worry about increased operational costs, upgrading their IT systems, and not having the necessary expertise to implement e-invoicing effectively.
Source Comarch
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