ClearTax e-Invoicing Portal vs MyInvois Portal: A Comprehensive Comparison

e-Invoicing in Malaysia was introduced by the Inland Revenue Board of Malaysia (IRBM) to enhance tax compliance and streamline financial transactions, and the first phase of this mandate came into effect on August 1.  There are two main ways to generate e-invoices in Malaysia: The MyInvois Portal, which allows for manual or bulk e-invoice creation, and API integration, which enables automatic e-invoice generation via business systems. 

ClearTax offers a platform to help businesses integrate their systems with the MyInvois system and provides its own e-invoicing portal. This blog will compare both MyInvois and ClearTax Portal to help you choose the best.

e-Invoicing in Malaysia

e-Invoicing, or electronic invoicing, is a digital method for creating, sending, receiving, and managing invoices, replacing traditional paper or PDF invoices with a standardized electronic format. This system allows invoices to be transmitted directly between businesses in Malaysia and IRBM in real time enhancing efficiency and accuracy.

e-Invoices in Malaysia use XML or JSON and UBL (Universal Business Language) structure, which facilitate automated data processing. E-invoices are validated in real-time by central authorities to ensure compliance and accuracy, and they often feature unique identification numbers or QR codes for easy tracking.

e-Invoicing Models

e-Invoicing can be implemented through various models, each catering to different business needs and operational scales. In Malaysia, businesses have the option to choose between these models based on their size, transaction volume, and integration capabilities. 

1. MyInvois Portal

The MyInvois Portal is a free digital platform provided by the Inland Revenue Board of Malaysia (LHDNM) to support e-invoicing for Micro, Small, and Medium Enterprises (MSMEs) or enterprises with a smaller e-invoicing volume. It is accessible on multiple devices, such as computers, laptops, and smartphones, making it user-friendly and easy for users to navigate and generate e-invoices.

The portal offers a full range of tools for taxpayers to efficiently manage every aspect of e-invoicing, whether they are issuing invoices as sellers or processing them as buyers.

Key Attributes:

• Manual Entry
• User-Friendly Interface
• Real-Time Validation

Best For:

• Small to medium businesses (MSMEs)
• Companies with relatively low transaction volumes.

2. Application Programming Interface (API)

The API model allows businesses to integrate their existing ERP (Enterprise Resource Planning), billing, or accounting systems directly with the IRBM’s e-invoicing system.

Key Attributes:

• Automated Processes
• Source system Integration
• Customization

Best For:

• Larger enterprises or businesses with high transaction volumes.
• Companies seeking to automate invoicing processes and integrate seamlessly with their existing systems.

ClearTax and ClearTax e-Invoicing Portal

ClearTax is a leading e-invoice solution provider in Malaysia, specializing in helping businesses transition to the latest e-invoicing regulations. It achieves this by integrating business systems with the MyInvois system through API connections.

In addition to this integration, ClearTax has developed its own web-based e-invoicing portal. This portal is designed to streamline the e-invoicing process and ensure compliance with Malaysia’s regulations. The portal simplifies the e-invoicing process, making it easier for businesses to comply 

Features of ClearTax Portal and MyInvois Portal

Here are some of the common features of MyInvois Portal and ClearTax Portal.

• Digital Profile Management: Manage profiles for taxpayers and their representatives, including user roles and permissions. Register and manage ERP systems and intermediaries involved in the invoicing process.
• Document Management: Issue invoices, credit notes, debit notes, refund notes, and self-billed documents. View, search, cancel, reject, print, and share e-invoice documents.
• Draft Management: Batch upload and manage draft documents, including submission and deletion.
• Notifications and Alerts: Receive real-time notifications on document status, validations, and required actions.
• Invoice Retrieval and Validation: Retrieve and view validated invoices anytime, ensuring compliance with e-invoicing regulations.

Additional Features of ClearTax e-Invoicing Portal

While both the MyInvois and ClearTax portals offer many similar features, the ClearTax e-invoicing portal also includes some additional functionalities:

Efficient Data Ingestion: ClearTax supports bulk ingestion of invoice data using CSV and Excel formats, significantly reducing the time needed for data entry compared to manual methods. This streamlined process allows for faster and more efficient handling of large volumes of invoices.

Advanced Error Tracking and Root Cause Analysis (RCA):  ClearTax portal provides comprehensive error tracking with detailed messaging on the reasons for failure, enabling users to quickly identify and rectify issues before submission to the Inland Revenue Board of Malaysia (LHDN). The platform performs over 150+ data validations to ensure accuracy and compliance.

B2C Self e-Invoice Portal: ClearTax offers a customer module where customers can log in, fill in additional details, and generate e-invoices on their own. This feature addresses a common challenge in generating e-invoices for B2C transactions, which often require additional buyer details. By allowing customers to complete this step themselves, ClearTax significantly enhances the buying experience, particularly for e-commerce sites and POS systems in supermarkets, reducing queues and improving overall customer satisfaction.

Customizable e-Invoice Generation: Unlike standard templates, ClearTax allows businesses to store custom data fields beyond the mandatory 55 e-invoice fields and generate customized PDF templates. This feature includes adding company logos and other branding elements, enhancing the professional presentation of invoices.

No Digital Signature Procurement: Users don’t need to procure a separate digital signature if using ClearTax Portal, simplifying the onboarding process and reducing additional costs for businesses.

Advanced User Access Control: The platform offers six different user roles with tailored access rights (view-only or edit access), ensuring that employees only access the information relevant to their roles, thus enhancing security and operational efficiency.

Comprehensive Support and Guidance: ClearTax provides robust support with a dedicated local account manager to assist with both compliance and technology-related queries. Additionally, a 24/7 backend support centre is available to address any issues promptly, ensuring smooth operations during and after go-live.

Smart Reports and Dashboards: ClearTax features customizable dashboards that provide a comprehensive overview of e-invoice statuses, including generated, failed, and rejected invoices. Users can access historical data and receive daily email updates with detailed reports, keeping all stakeholders informed and aiding in decision-making.

Data enrichment: ClearTax automatically enhances the data that they receive from customer source systems before submitting to LHDN for e-invoice generation. This includes converting the document issue date & time to UTC from MYT, re-adjusting the document issued date within 72 hours as per LHDN compliance and much more.

Which One is Better: MyInvois vs. ClearTax Portal?

When deciding between the MyInvois and ClearTax portals for e-invoicing in Malaysia, the choice largely depends on the specific needs and size of your business. Here’s a comparison to help determine which platform suits your requirements better

The MyInvois Portal, developed by the Malaysian government, is a reliable and straightforward option, particularly suited for:

• Businesses with sporadic e-invoicing needs or a lower volume of invoices.
• Companies focused on B2B transactions only that do not require advanced features like custom fields, extensive reporting, or API integrations.
• Micro and small enterprises that do not need bulk invoice generation.
• Businesses looking for a no-cost, government-backed solution with basic functionalities.

ClearTax e-Invoicing Portal

ClearTax offers a more robust and scalable e-invoicing solution with several additional features, making it a better fit for:

• Medium to large-sized businesses that handle a high volume of invoices and need bulk e-invoicing capabilities.
• Companies involved in B2C transactions as ClearTax features a unique self-service B2C e-invoicing portal, where customers can log in, provide necessary details, and generate e-invoices independently.
• Growing businesses that require a scalable solution to accommodate increasing invoicing demands.
• Organizations with recurring customers who need efficient management of repeat transactions.
• Businesses that need a comprehensive reporting system, customizable invoice templates, and advanced error tracking capabilities.
• Companies that use or plan to use the API model for integration with existing ERP or accounting systems.
• Organizations that require enhanced support with dedicated local account managers and customizable user access control.

Conclusion

While the MyInvois Portal offers a reliable, government-backed solution, ClearTax stands out for its efficiency, ease of use, and advanced features. For businesses with minimal e-invoicing needs, the MyInvois Portal is sufficient. However, for medium to large enterprises with complex invoicing requirements, ClearTax provides a more robust and scalable option.