Introduction of Guidelines for Mandatory E-Invoicing Implementation in Malaysia

The Inland Revenue Board of Malaysia (IRBM) has published official guidelines outlining the gradual implementation of mandatory e-invoicing for targeted taxpayers in Malaysia.

On 21 July 2023, IRBM released the Guideline to clarify the scope, implementation approach, and compliance requirements for the upcoming e-invoicing mandate.

Purpose of the Guideline

The Guideline explains the e-Invoice framework in a clear and practical manner, covering:

• Core e-Invoice concepts and definitions
• Implementation and compliance requirements
• Recordkeeping and audit considerations
• Common operational and technical questions raised by taxpayers

It is intended to help businesses understand how and when they are required to transition to e-Invoicing.

E-Invoicing Implementation Timeline

Mandatory e-invoicing will be rolled out in phases based on annual turnover or revenue:

• 1 June 2024. Taxpayers with an annual turnover exceeding RM 100 million
• 1 January 2025. Taxpayers with annual turnover exceeding RM 50 million and up to RM 100 million
• 1 January 2026. Taxpayers with annual turnover exceeding RM 25 million and up to RM 50 million
• 1 January 2027. All taxpayers, including certain non-business transactions

Types of Documents Covered

The following documents must be issued in electronic format under the mandate:

• Invoices
• Credit notes and debit notes
• Refund documents

Transmission Methods for E-Invoices

IRBM provides two e-Invoice transmission options to accommodate different business sizes and transaction volumes:

MyInvois Portal
A web-based portal hosted by IRBM and accessible to all taxpayers. This option is suitable for micro, small, and medium-sized enterprises, but is not designed for high-volume transaction processing.

Application Programming Interface (API)
An API-based integration for automated invoice submission. This option requires upfront technical investment but is intended for large taxpayers or businesses with high transaction volumes.

Additional Information

The Guideline Version 1.0 provides further technical and operational details and serves as the primary reference for businesses preparing for Malaysia’s mandatory e-invoicing rollout.