Return to mapElectronic Invoicing in Malaysia
Malaysia has launched electronic invoicing as part of its strategy to digitally transform the tax system. Since August 1, 2024, a phased mandatory rollout of electronic invoicing for commercial transactions has been in force.
Characteristics of Electronic Invoicing in Malaysia
The system adopted is a Continuous Transaction Controls (CTC) clearance model, under which all invoices must be sent to the tax authority for validation before commercial use. The responsible entity is the Inland Revenue Board of Malaysia (IRBM), which developed the MyInvois platform for receiving and verifying all electronic documents.
A distinctive feature of the Malaysian model is that each electronic invoice, once validated, receives a unique identifier and a QR code issued by the IRBM.
Mandatory Use
The adoption of electronic invoicing was implemented gradually based on the taxpayers’ annual turnover, following a phased schedule between 2024 and 2026. The key dates defined by the authorities are as follows:
- August 1, 2024: obligation begins for companies with annual turnover ≥ MYR 100 million (large taxpayers).
- January 1, 2025: companies with annual revenue > MYR 25 million and up to MYR 100 million are included.
- July 1, 2025: companies with annual revenue between MYR 5 million and MYR 25 million are incorporated.
- January 1, 2026: mandatory for taxpayers with annual revenue between MYR 1 million and MYR 5 million.
- July 1, 2026: final phase applies to companies with annual revenue below MYR 1 million (micro and small enterprises).
Invoice Format
The required transmission format is an electronic XML or JSON file in accordance with the IRBM’s technical specifications. Additionally, to ensure global interoperability, Malaysia has adopted the Peppol International Invoice (PINT) standard as a reference for invoice content, referring to it locally as “MY PINT” when the Peppol network is used.
Electronic Signature
To ensure the authenticity and integrity of the documents, Malaysia requires the issuer’s digital signature on every electronic invoice. According to the IRBM’s technical guidelines, the issuer must electronically sign the invoice using a valid digital certificate issued in their name.
Archiving
Regarding the retention period, companies must store their electronic invoices and related documents for a minimum legal period of 7 years. This obligation applies to both the issuer and the recipient, who must preserve the digital files in a format that guarantees legibility and authenticity throughout the entire period.
Tax Control
The IRBM acts as a mandatory intermediary that validates and records each transaction in near real time. Every invoice sent to the MyInvois system undergoes automated checks to verify data consistency and the formal accuracy of the document before approval. Once validated, the invoice information is archived on the IRBM’s servers and made available to the tax administration, ensuring complete traceability of reported sales and purchases across the economy.
How deos the e-Invoicing process work
The electronic invoicing process in Malaysia follows a structured flow that ensures prior fiscal validation by the IRBM. The main stages are as follows:
- Generation: The issuer creates the electronic invoice in XML or JSON format, digitally signs it, and prepares it for submission.
- Transmission to IRBM: The invoice is sent to the MyInvois system, either manually through the portal or automatically via API.
- Validation: The IRBM reviews the invoice and, if compliant, assigns it a unique identifier and a QR code.
- Notification: The issuer (and optionally the recipient) is informed that the invoice has been validated and officially recorded.
- Delivery to the recipient: The issuer shares the invoice with the customer. If a human-readable format such as PDF is used, it must include the validated QR code.
- Acceptance or rejection: The recipient has 72 hours to reject the invoice in case of errors. The issuer may also cancel it within the same period.
- Archiving: Both parties must retain the validated invoice for at least 7 years.
Optional use of the Peppol network: In parallel with the standard flow described above, Malaysia allows companies to voluntarily use the Peppol network to transmit electronic invoices to their customers, particularly in B2B and B2G contexts. In this model, the issuer engages a Peppol Access Point accredited by MDEC and sends the invoice in the standard electronic format (PINT) through the Peppol network to the final recipient.
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