E-Invoicing in Malaysia

Mandatory Electronic Invoicing in Malaysia

Learn how to get your company ready to exchange documents in accordance with regulations in Malaysia with the support of Comarch

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Electronic Invoicing in Malaysia

Malaysia is on the Road to E-invoicing

To support growth of the digital economy, the government intends to implement e-Invoicing in stages in effort to enhance the efficiency of the country's tax administration management. The implementation of e-Invoicing will improve the quality of services and reduce compliance costs to taxpayers, while increasing the efficiency of business operations, as was announced by the Ministry of Finance.

Who is obliged to use e-invoicing

Who is obliged to use e-invoicing in Malaysia?

In Malaysia, e-invoicing is not currently mandatory, but has been possible since 2015. However, written consent or authorization is required to receive electronic invoices. The e-invoicing initiative is supported by the use of TIN (Tax Identification Number), which was introduced in Malaysia in 2022.

As a next step, in March 2023, Malaysia decided to implement obligatory e-invoicing to improve the quality of services and reduce compliance costs to taxpayers, while increasing the efficiency of business operations. The Malaysian Tax Office (IRB) presented a plan for the phased implementation of electronic invoicing, which will be initiated by launching a pilot project for selected companies in 2024. The mandatory exchange of electronic invoices will cover B2G, B2B and B2C transactions, both domestic and cross-border. However, while the Tax Office has not yet published details in this regard, it has outlined what the next steps will be. The gradual implementation of the obligation will start in June 2024 and end in 2027, and the model planned by the Malaysian government will be based on the CTC combined with a PEPPOL network

Implementation timeline

The date of implementation of the obligation to exchange invoices electronically depends on the revenues from the activities of enterprises.

  • January 2024: ability to implement e-invoicing voluntarily
  • June 2024: businesses with annual turnover of MYR 100 million/year
  • January 2025: businesses with annual turnover of MYR 50 million/year
  • January 2026: businesses with annual turnover of MYR 25 million/year
  • January 2027: mandatory implementation for all businesses.

E-invoicing process description

E-invoicing process description

Issuers of invoices will be required to deliver them to government entities for verification and approval before sending them to recipients. Each invoice at this stage will be provided with a certificate with its serial number, which will be proof for both the issuer and the recipient that it has been issued correctly. An additional invoice verification method will require a QR code. Invoices will be exchanged mainly through the PEPPOL channel. The myTax portal will also be made available, which will enable manual issuing and receiving of e-invoices.

Archiving requirements for e‑Invoicing in Malaysia

The required storage period is 7 years. Storage abroad is allowed if the Director General of the Royal Malaysian Custom issues permission.

How integrity and authenticity may be ensured?

In Malaysia, integrity and authenticity will be guaranteed thanks to invoice certificate with its serial number and QR codes.

Acts / Government sites

How can we help?

Comarch is currently monitoring the development connected to the planned e-invoicing mandate, as four-corner PEPPOL will be introduced.

Why is Comarch the best choice?

We have 20+ years of experience in carrying out various EDI, e-invoicing, and other document exchange projects around the world. In those years, we have successfully connected more than 130,000 entities from over 60 countries.

  • 1. Legal compliance

    Full compliance with the latest data exchange regulations and modern data transfer standards

  • 2. Digitization

    Applying new technologies and IT solutions in order to streamline workflows and automate activities and procedures

  • 3. Individual approach

    Tailor-made solutions based on processes specific to each company – own road map and a suitable pace of changes

  • 4.Security

    Highest level of security for all sensitive and important company data

    Legal regulation changes in Malaysia

    Do you want to know more?

    If your company is based or has branches in the CountryName and you need to prepare your billing and tax systems to comply with the new requirements. Click on the button below to get in touch with one of our experts.


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