The Malaysian government will introduce mandatory e-invoicing in 2023.
Reasons behind e-invoicing in Malysia
The move was announced in Budget 2023. 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.
E-invoicing will be implemented by the Inland Revenue Board of Malaysia (IRB), partailly with the development of pilot systems and projects with selected taxpayers.
E-invoicing in Malaysia has been voluntary since 2015. Parties deciding on e-invoicing for their relations must sign an agreement. The storage period for e-invoices is seven years.