Malaysia e-Invoicing FAQs: Everything You Need to Know

The mandatory implementation of e-invoicing in Malaysia has been deferred from June 2024 to August 2024. While the Inland Revenue Board of Malaysia (IRBM) has released detailed e-invoicing guidelines, businesses may still have questions or concerns. 

 To address these, this article provides a comprehensive list of Frequently Asked Questions (FAQs) and their corresponding answers.

FAQs on e-invoice basics

What is an e-invoice?

An e-invoice is a digital record of a transactional exchange between a seller (supplier) and a purchaser (buyer), which goes through the government portal for validation and recordkeeping.
E-Invoice contains all the details of an invoice along with a Unique Identification Number (UIN), which is generated by the government system after proper verification of the core fields like TIN, MCIR, etc. and QR code, which enables online validation of the e-invoice.

What transactions are covered under e-invoicing?

e-Invoicing in Malaysia covers transactions such as Business to Business (B2B), Business to Customer (B2C), and Business to Government (B2G).

What documents are covered under e-invoices?

Invoices, credit notes, debit notes and refund notes fall under the scope of Malaysia e-invoice.

Is e-invoice applicable only to domestic transactions in Malaysia?

No, e-invoice applies to both domestic and international transactions.

From when should I generate e-invoices?
IRBM planned to introduce mandatory e-invoicing in phases. However, the government announced in the 2024 Budget that the mandatory implementation of e-invoicing has been postponed. Here's a comparison of the previous and revised e-invoicing timelines for Malaysia:

FAQs on the e-invoice process

What data is to be provided in an e-invoice?

To issue an e-invoice, it is necessary to provide 55 data fields, out of which 37 are mandatory and 18 are optional, categorized into eight groups: Address, Business Details, Contact Number, Invoice Details, Parties, Party Details, Payment Info, and Products/Services. 
Additionally, specific circumstances may necessitate submitting an annex with 17 additional details to IRBM.

A seller shall issue an e-invoice with 34 mandatory fields and an additional 17 fields based on specific conditions.

Is it mandatory to provide data in e-invoice annexures? 

If you raise an e-invoice for certain transactions such as export, import, etc., you must mention the 17 fields 

Can I cancel the invoice submitted to IRBM?

Yes, the seller can cancel the e-invoice within 72 hours from generation time.

Shall I issue an e-invoice for disbursements and reimbursements?

You must generate e-invoices for disbursements and reimbursements when you meet certain conditions.

Can I edit an e-invoice on MyInvois Portal after IRBM validates the e-invoice?

No, the seller should cancel the e-invoice and reissue a new e-invoice.

Does the invoice number change once IRBM validates it?

No, there will be no change in the invoice number. However, the seller will get an e-invoice with a Unique Identifier Number once IRBM validates and clears the invoice.

Is there any specific application required to scan the QR code?

No, you can use any device, such as a mobile camera or a QR code scanner. 

What does the e-invoice QR code contain?

QR code gives you a link to the validated e-invoice. Further, you can use the link to access the e-invoice via the Myinvois portal.

What e-invoice model will be adopted?

IRBM is developing the Continuous Transaction Control (CTC) Model to validate e-invoices instantly or near-instantly.

Is my invoice data secure when I use an API solution to generate e-invoice?

Yes, API solutions are equipped with network and security monitoring tools and ensure data security and privacy.

FAQs on Malaysia e-invoice authority

Who is the e-invoice authority in Malaysia?

The Inland Revenue Board of Malaysia (IRBM) is the authority for e-invoice activities.

Will IRBM provide any technical guidance on system integration?

The IRM will tentatively release the SDK and technical guidelines in November 2023.

Will IRBM conduct any engagement sessions?

IRBM is conducting engagement sessions with professional bodies, tax practitioners and identified stakeholders to guide them towards implementing e-invoicing in Malaysia.

Who should we reach out to if there are queries or concerns?

Please raise any queries or concerns to myinvois@hasil.gov.my.

What security measures would IRBM adopt to ensure taxpayer invoice data is safe in the e-invoicing journey?

LHDNM will ensure that MyInvois System is in compliance and certified with ISO/IEC 27001 Information Security Management System (ISMS) and ISO 22301 Business Continuity Management System (BCMS) Audit Certification.

Do you have more questions or want to understand how Malaysia e-invoice impacts you? 
Write to us!