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
Learn how to get your company ready to exchange documents in accordance with regulations in Malaysia with the support of Comarch
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.
The date of implementation of the obligation to exchange invoices electronically depends on the revenues from the activities of enterprises.
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.
The required storage period is 7 years. Storage abroad is allowed if the Director General of the Royal Malaysian Custom issues permission.
In Malaysia, integrity and authenticity will be guaranteed thanks to invoice certificate with its serial number and QR codes.
Comarch is currently monitoring the development connected to the planned e-invoicing mandate, as four-corner PEPPOL will be introduced.
