Updated on: Jul 14th, 2025
|
20 min read
Switch Language
In March 2023, the Inland Revenue Board of Malaysia (IRBM) introduced mandatory e-invoicing in Malaysia, requiring all registered businesses to generate e-invoices for B2B, B2G, and B2C transactions.
The first phase began on 1 August 2024 for businesses with a turnover exceeding RM100 million, followed by phase 2 on 1 January 2025 for companies with a turnover surpassing RM25 million, and phase 3 on 1 July 2025 targeting businesses with a turnover between RM5 million and RM25 million.
These businesses now submit e-invoices to the IRBM using the UBL 2.1 format (XML or JSON) through the MyInvois portal or via direct API integration.
Recent Update: e‑Invoice Requirements for Donations & Contributions
On 7 July 2025, IRBM released its updated e‑Invoice guidelines and a dedicated FAQ on donations and contributions with the following clarifications
- All monetary donations or contributions now require e‑Invoices, either individual (if requested) or consolidated by month-end
- Donations in goods or services are excluded from e‑Invoice requirements.
- Religious institutions solely for worship are exempt unless they have tax‑exempt status or run approved charity/community projects
- If no individual invoice is requested, recipients must still issue a consolidated e‑Invoice
FAQs on e-Invoice for Donations and Contributions PDF download
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 in real time for validation and recordkeeping.
Malaysia's e-invoice contains 55 fields with details of the transactions such as seller & buyer details, item description, quantity, price, tax, total amount, payment details, etc. Successfully validated and generated e-invoices would also have a Unique Identification Number (UIN) and QR Code, which is generated by the MyInvois Portal, enabling online validation of the invoice.
The e-Invoicing in Malaysia is being rolled out in phased manner based on the turnover. Below is the updated Malaysia e-invoice implementation timeline from the latest guidelines:
The steps to generate an e-invoice in Malaysia vary depending on the e-invoicing model (API or MyInvois Portal) and whether the transaction is B2B or B2C. However, the majority of the process remains consistent.
Here is a general overview:
Suppliers must issue e-invoices for all B2C transactions. However, many buyers, particularly end consumers and specific businesses, do not need an e-invoice. Therefore, the generation of e-invoices for B2C transactions varies based on the buyer's requirements:
The process is clearly explained in the chart below for Malaysia B2C e-Invoicing.
In Malaysia, companies can choose from the following transmission modes to report e-invoices known as e-invoicing models
The MyInvois Portal allows users to generate e-invoices manually, either one at a time or in bulk by uploading a spreadsheet in a predetermined format. This portal is ideal for Micro, Small, and Medium-sized Enterprises (MSMEs) or companies with lower transaction volumes due to the need for manual data entry.
The portal was made live by the IRBM on June 28, 2024, offering both testing and production environments. It can be accessed at preprod-mytax.hasil.gov.my or mytax.hasil.gov.my.
For instructions on how to log in for the first time, visit this MyInvois Portal Login and e-invoice generation guide.
Businesses can integrate their ERP, billing, or accounting systems with the MyInvois system through an API. This integration enables the automatic generation, sending, receiving, and correction of e-invoices directly through their systems, making it possible to handle large volumes of transactions in real-time.
Recognizing the complexity of this integration, the Lembaga Hasil Dalam Negeri (LHDN) has introduced the e-invoice Malaysia Software Development Kit (SDK).
The below documents must be issued in electronic format under Malaysia e-Invoice:
LHDN has released guidelines outlining which entities, individuals, and businesses are required to adhere to e-invoicing rules, as well as those exempt from them.
Entities Required to Comply with e-Invoicing in Malaysia | Entities exempt from e-Invoicing |
|
|
e-Invoicing Malaysia Guidelines PDF Download
The Malaysian government aims to boost the digital economy and improve tax administration with e-invoicing in Malaysia. Key benefits include:
Suggested Read: Advantages and Disadvantages of e-Invoicing in Malaysia
The shift to e invoicing in Malaysia brings several challenges:
ClearTax is an MDEC-accredited e-Invoicing solution provider in Malaysia. It integrates your business systems with the IRBM e-invoicing system to automate and ensure 100% compliance in e-invoice generation.
Malaysia’s e-invoicing mandates require efficient compliance, automation, and data security. Her is how ClearTax delivered robust solutions for high-volume, complex business needs.
A major Malaysian insurer automated high-volume invoicing and met BNM’s RMiT standards across multiple ERPs.
Read more: How a major Malaysia Insurer automated high-volume invoicing - case study (PDF)
A leading aviation group integrated 30 entities, processing 24 million invoices annually.
Read More: Malaysia’s top aviation group processes 24M+ invoices yearly across 30 integrated entities - case study (PDF)
The Malaysian government acknowledges that some industries have more complex business practices and billing systems, making e-invoicing more challenging. To address these complexities, the IRBM has published industry-specific FAQs.
The following FAQs have been released by the IRBM to date:
Click here to read more FAQs on Malaysia e-invoice.
