Fiscal subject related
General information
Phased Rollout:
- August 2024: Businesses with turnover above MYR 100 million
- January 2025: Turnover between MYR 25–100 million
- July 2025: All other taxpayers
- A grace period allows consolidated e-invoices until February 2025.
Important Requirements:
- Invoices must be electronically generated and submitted to the IRBM via the MyInvois Portal or API (XML/JSON).
- Businesses need digital certificates linked to their Tax ID for identity verification and digital signing.
- Systems must be compatible with MyInvois, with SDK support for integration.
- Self-billed e-invoices are required for purchases from non-registered foreign and local suppliers.
- Valid e-invoices include up to 55 data fields and a QR code issued after IRBM validation.
- Peppol PINT Malaysia standards apply for cross-border transactions.
- E-invoices must be archived for seven years, as required by tax law.
Workflow:
Suppliers submit e-invoices for real-time IRBM validation. Once approved, a QR-coded invoice is shared with the buyer, with both parties notified. Rejections or cancellations are permitted within 72 hours.
B2C Sales can be consolidated into a single e-invoice submitted monthly. Consumers cannot reject these invoices.
Penalties for Non-Compliance:
- Fines of RM 200 to RM 20,000 per offence
- Up to six months’ imprisonment
Business Readiness:
- Early preparation is critical to avoid last-minute issues.
- Decide on manual or automated submission methods.
- Implement robust controls, especially for self-billed invoices.
- Ensure complete, accurate data and engage tax, IT, and operations teams.
Malaysia’s e-invoicing mandate reflects a global trend toward digital tax enforcement, improving transparency and operational efficiency. While the system simplifies compliance and reduces fraud, it imposes technical and procedural changes, especially for businesses new to real-time reporting.
Businesses must act quickly to upgrade systems, align with MyInvois requirements, and establish reliable processes. Early adopters will benefit from smoother operations, stronger compliance, and integration with Malaysia’s evolving digital tax infrastructure.
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