Malaysia - E-Invoicing Implementation Timeline

In March 2023, the Malaysian Inland Revenue Board (IRB) announced the introduction of a mandatory e-invoicing system that includes B2B, B2C, and B2G transactions. The system will be implemented in several phases. The implementation plan was explained in the Guidelines published by the IRB in July 2023.

The guidelines were updated on several occasions, with the latest update occurring on April 6, 2024. Among other information, these guidelines include an overview of the e-invoice models and implementation timeline.

E-Invoice Models and Implementation Timeline

Based on their business requirements and specific needs, businesses will be able to choose between two e-invoicing models, that is, between two options for the e-invoice transmission mechanisms developed by the IRB:

1. A MyInvois Portal hosted by IRB and

2. Application Programming Interface (API).

The MyInvois portal will be accessible to all businesses and allow them to perform all the requirements regarding e-invoices (e.g., generate, submit, view, cancel, or reject invoices). This model is more suitable for a small volume of data and will be ideal for the needs of micro, small, and medium-sized businesses (MSMEs). 

In addition, businesses that use the API model will use MyInvois when API connections are unavailable.

The API model will enable businesses to transmit high-volume data in either XML or JSON format, making it ideal for large businesses with a high volume of transactions. Businesses that use this model will have to enable direct integration with their ERP and MyInvois systems. 

Besides direct integration, businesses can transmit data to IRB through Peppol service providers or non-Peppol technology providers.

The IRB developed the e-invoice implementation timeline, considering the turnover or revenue thresholds, to give businesses sufficient time to adapt. The implementation timeline is following:

Conclusion

As the deadline for the first phase of the implementation process approaches, businesses from all industries without any exemptions will have to prepare their system for mandatory e-invoicing. Failure to do so could result in penalties of not less than RM 200 and not more than RM 20,000.

Source: Inland Revenue Board (IRB)