The Inland Revenue Board of Malaysia (LHDNM) plans to introduce mandatory electronic invoicing gradually. The project will commence on 1 July 2024 and end on 1 January 2027. As envisaged by the LHDNM, the obligation will eventually cover all domestic and cross-border transactions (B2B, B2G, B2C) conducted by Malaysian taxpayers. This new invoicing scheme will follow a Continuous Transaction Control model necessitating initial invoice verification by relevant authorities.
The Revenue Board confirmed the system’s pilot phase is set to be launched in May 2024. The pilot will allow both the authorities and businesses to gather the necessary experience before the system’s first phase launch in August 2024.