Malaysia regulatory update- Technical specifications
- Deadlines
- Penalties
Malaysia’s E-Invoicing Mandate Enters Second Phase from January 2025
Malaysia’s e-invoicing mandate enters its second phase from January 2025, expanding requirements to businesses with RM 25–100 million turnover and introducing enforcement, formats, and grace period rules.
SwathyContent MarketerPublishedReading time1 min readThe Inland Revenue Board of Malaysia (IRBM) is moving forward with the second phase of Malaysia’s mandatory e-invoicing rollout, expanding the scope of affected businesses from 1 January 2025.
Following the first phase launched in August 2024 and applied to large taxpayers, the second phase brings additional companies into scope as part of the gradual nationwide implementation.
Who Is Covered in Phase Two
From 1 January 2025, mandatory e-invoicing will apply to businesses with:
- Annual turnover or revenue above RM 25 million and up to RM 100 million
Scope and Format of Mandatory E-Invoices
Under the second phase, invoices must be issued in structured electronic formats, using UBL 2.1 in XML or JSON.
The following document types fall within scope:
- E-invoices, including consolidated and self-billed e-invoices
- Credit note e-invoices
- Debit note e-invoices
- Refund e-invoices
Transmission Methods
Taxpayers may submit e-invoices using one of the following options:
MyInvois Portal
A web-based portal suitable for lower transaction volumes, commonly used by small and medium-sized businesses.
MyInvois System (API)
An API-based integration designed for higher transaction volumes. This option may require upfront investment and system upgrades, but it provides greater automation and scalability.
Grace (Relaxation) Period
As previously announced, each rollout phase includes a six-month grace period allowing the use of consolidated e-invoices.
For second-phase taxpayers, the grace period applies from:
- 1 January 2025 to 30 June 2025
During this period, consolidated e-invoicing is permitted in accordance with IRBM rules.
Penalties for Non-Compliance
- For taxpayers covered under Phase One, penalties apply from 1 October 2024
- For taxpayers entering Phase Two, penalties for non-compliance will apply from 1 January 2025
Businesses entering the second phase are therefore encouraged to complete system readiness and onboarding ahead of the enforcement date.
Sources
Official sources for this update are being added during regulatory review.
- Article published
- 28 Oct 2024
- Effective date
- Not set
- Content review
- Pending regulatory review
Malaysia: current requirements
- B2B
- Mandatory
- B2G
- Mandatory
- B2C
- Mandatory
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