Malaysia's E-Invoicing: MyInvois System Goes Live, Phased Implementation

Malaysia is gradually implementing mandatory e-invoicing from August 2024 to January 2026 for businesses with sales over RM150,000. Invoices must be approved by the tax authority before being sent to customers, using the MyInvois system and Peppol network. The rollout supports Malaysia’s push to modernize tax reporting and improve compliance.

Malaysia is rolling out its MyInvois e-invoicing system in phases, starting with large businesses in August 2024, and gradually expanding to smaller businesses by January 2026. The latest MyInvois 2.1 guidelines (April 2025) include updates on transaction types, new API features, and a software development kit to help businesses integrate. The government has also confirmed Peppol will be used for invoice exchange, with the Ministry of Communications and Digital overseeing it.

E-invoicing is mandatory for businesses with annual sales over RM150,000, with smaller businesses exempt. Each group gets a 6-month soft launch period to adjust before penalties apply. The system uses Continuous Transaction Control (CTC), meaning invoices must be sent to the tax authority for approval before reaching customers. E-invoices will carry a QR code and be submitted in XML or via API.

This move is part of Malaysia's broader tax digitization strategy. Though e-invoicing has been allowed since 2015, it’s now being enforced step-by-step, aiming to improve compliance, reduce fraud, and modernize tax reporting.