What is PINT, MY PINT and Malaysia Peppol ID?

The Inland Revenue Board of Malaysia (IRBM) has introduced e-invoicing in Malaysia for all businesses in phases based on turnover. Businesses would need to digitally submit invoices for reporting to IRBM's MyInvois System and get them validated.

E-invoicing is complex. When mandated by the government, transaction details must be digitally transmitted, read, and validated in a standardized format. This standardization applies regardless of the software, location, or industry involved.

To tackle this complexity, MDEC (Malaysia's Peppol Authority) mandated the Peppol standard framework for e-invoicing in Malaysia, facilitating interoperability and systematic exchange of e-invoices between businesses. Each business would be assigned a unique Peppol ID, which would act as the key identifier to send and receive e-invoices.

However, a single framework cannot address all e-invoicing requirements globally. Therefore, there is the PINT specification for global interoperability which can be further customized to meet specific needs of  each region/country.

MY PINT specification complies with Malaysia's local regulations, standardizes the e-invoicing framework, and enables global exchange between Malaysian and foreign companies.

This blog will discuss in detail PINT, MY PINT, Malaysia Peppol ID and its format.

WHAT IS Peppol International Invoice (PINT)? 

PINT stands for Peppol International Invoice. It's a specification designed to facilitate the interoperable exchange of invoices across the Peppol Network. Built upon the Peppol BIS Billing 3.0 specification, PINT ensures compliance with global standards. 

In simple terms, PINT, or Peppol International Invoice, acts as a standardized template for electronic invoices that allows businesses to easily exchange invoices with each other, especially when businesses from different countries with different compliances, requirements and systems across different countries can understand and process.

MY PINT: PINT for Malaysia Context

MY PINT, or Malaysia Peppol International Invoice, is a localized version of the Peppol International Invoice (PINT) framework tailored specifically to meet the business and tax requirements of Malaysia. It enables seamless exchange of electronic invoices (e-Invoices) via the Peppol network within the Malaysian context.

MY PINT specification is built in compliance with e-invoicing regulations set by the Inland Revenue Board of Malaysia (IRBM). 

The key features and components of MY PINT include:

1. Localization for Malaysia: MY PINT incorporates localizations to support Malaysia's unique business practices and tax regulations, such as the use of Sales and Service Tax (SST) instead of Value Added Tax (VAT).
2. OASIS UBL 2.1 XML Format: Similar to the standard PINT framework, MY PINT utilizes the OASIS UBL 2.1 XML format for consistency.
3. Peppol MY PINT BIS: The specification for MY PINT is based on Peppol MY PINT BIS Documentation, which outlines the electronic document specifications specific to Malaysia.
4. Malaysia Peppol ID: MY PINT integrates with the Malaysia Peppol ID system, providing unique identifiers for companies and organizations within the Peppol network.
5. Support National Digitalization: MY PINT aligns with Malaysia's national digitalization agenda, particularly initiatives outlined in the 12th Malaysia Plan (RMK-12) and the National eCommerce Strategic Roadmap (NESR 2.0), aimed at enhancing B2B trading and fostering digital economy growth.

What is Peppol ID?

A Peppol ID, also known as a Peppol Participant Identifier, is a unique alphanumeric code used within the Peppol network to identify entities involved in electronic document exchange via Peppol. It serves as an address that enables companies, organizations, and authorities to send and receive business messages such as e-invoices, e-orders, and other electronic documents. 

Peppol ID plays a fundamental role in enabling secure, standardized, and automated electronic document exchange within the Peppol network, promoting efficiency, compliance, and global connectivity for businesses of all sizes.

Peppol ID Format

The Malaysia Peppol ID Format comprises three major components:

1. ISO 6523 ICD (Identification Code), First 4 Digits: ISO 6523 establishes a system for assigning unique identifiers to entities involved in various activities, including businesses, governmental bodies, and other organizations. The ISO 6523 Code for Malaysia is 0230.
2. Special Identifier, Next 2 Digits: This section delineates the type of business identifier using the following values:

• 01 — SSM Number
• 02 — Sabah
• 03 — Sarawak
• 04 — Foreign Businesses
• 05 — Testing Purpose

3. Business Identifier,  Variable Digits/Character

• 12-digit number: Represents the new SSM company registration number, inclusive of Sabah & Sarawak (restricted to Private Limited Company/ROC).
• 5-digit number: Applicable to enterprise companies in Sabah & Sarawak.
• Variable digits/characters: Utilized by foreign companies*, employing their existing registration number. An additional country code character signifies the company's country of origin.

Conclusion

With the Peppol International Invoice (PINT) specification enabling global interoperability and MY PINT addressing Malaysia's specific needs, LHDN and Malaysian businesses can overcome the complexities of e-invoicing with greater ease and efficiency.

The PINT specification makes sure that Malaysian companies can easily adhere to global electronic document exchange standards and compete in the race.