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Malaysia e-Invoicing: MyInvois vs API Comparison

Updated on: Aug 20th, 2024

20 min read

The e-invoicing mandate, announced by the Inland Revenue Board of Malaysia (IRBM), requires all businesses registered in the country to generate electronic invoices (e-invoices) for B2B, B2G, and B2C transactions. The mandate is being implemented in phases, starting on August 1, 2024, for businesses with a turnover exceeding RM 100 million.

To help businesses adopt e-invoicing in Malaysia, IRBM provides two main models for transmitting e-invoices: the MyInvois Portal and API integration. The MyInvois Portal is a simple, manual web based e-invoicing portal, while API integration offers automated, streamlined e-invoicing via businesses’ existing system.

In this blog, we'll explore the differences between these two e-invoicing models, discuss their pros and cons, and help you determine which option is best suited for your business.

What is an e-invoicing Model?

An e-invoicing model refers to the framework or mechanism businesses generate, transmit, and process electronic invoices (e-invoices) within a regulatory system. The Inland Revenue Board of Malaysia (IRBM) has introduced two main e-invoicing models to facilitate the seamless exchange of e-invoices between businesses and the tax authority: the MyInvois Portal and API Integration.

These models are used to ensure that e-invoices are created, validated, and stored in compliance with government regulations.

MyInvois Portal

The MyInvois Portal is a web-based platform provided by IRBM, allowing businesses to manually generate and submit e-invoices. Users can either generate a single e-invoice or generate it in bulk by feeding invoice data through a pre-defined template.

It is especially suited for small to medium-sized enterprises (SMEs) or businesses that do not have the infrastructure to integrate with an API.

Here is how MyInvois Portal works

Submission: Businesses log in to the portal and manually enter invoice details or upload a batch of invoices via a preformatted spreadsheet.
Validation: Once submitted, the portal validates the e-invoice against IRBM's standards. If successful, the e-invoice is converted into a PDF with a Unique Identification Number (UIN) and QR code.
Acceptance: After validation, the supplier and buyer are notified via email, and the validated e-invoice can be shared with the buyer.
Rejection/Cancellation: If the buyer identifies an issue with the e-invoice, they can request a rejection within a 72-hour window. The supplier can then cancel or amend the invoice through the portal.
Reporting & Storage: The portal provides tools for generating reports and dashboards. All e-invoices are stored in IRBM’s database, but businesses are advised to maintain their own copies.

API Integration

API Integration allows businesses to directly link their Enterprise Resource Planning (ERP) systems or billing software with the IRBM’s e-invoicing system.

Invoice data is submitted to the IRBM system in real time as soon as it is generated through the system. This model is designed for businesses with a high volume of transactions, enabling automated and real-time e-invoice processing.

Here is how API Integration works

Integration: Business systems are connected to the IRBM’s e-invoicing system using API. IRBM has released the Software Development Kit (SDK) that contains details related to the document types, statuses, codes, APIs, validation rules, etc, to help developers to integrate the API’s.
Submission: e-invoices are automatically generated by the business's ERP system and sent directly to IRBM via the API. This process eliminates the need for manual entry and reduces errors.
Validation: The API provides real-time validation of the e-invoice. If valid, a UIN and QR code are issued instantly.
Acceptance: The validated e-invoice is automatically integrated into both the supplier's and buyer’s systems, with notifications being handled internally.
Rejection/Cancellation: Like the portal, the API allows for automated rejection or cancellation of invoices within the 72-hour window. Adjustments are processed quickly, ensuring minimal disruption.
Reporting & Storage: Businesses can customize reporting within their own systems, with all e-invoices stored in IRBM’s database and accessible via the ERP or integrated systems.

MyInvois Portal vs. API Integration: Comparison Table

Feature	MyInvois Portal	API Integration
Creation and Submission	Manual creation (individual or batch). Best for businesses without advanced systems.	Automatic submission via ERP or third-party software. Ideal for seamless operations.
Validation	Invoices validated in PDF; errors need manual resubmission.	Real-time validation with instant feedback; includes unique identifiers from IRBM.
Notification	Sent via portal and email to both suppliers and buyers.	Integrated into the business’s systems, enhancing communication.
Sharing	Suppliers manually share with buyers, including QR code for verification.	Buyers access validated invoices directly through their systems.
Rejection/Cancellation	Processed manually within 72 hours; beyond this, a new invoice is needed.	Automated handling within 72 hours; requires new invoices for corrections.
Reporting & Dashboard	Built-in tools for reporting and dashboards.	Customizable within existing systems for tailored insights.
Storage	Stored in IRBM’s database; businesses should keep additional records.	Stored in IRBM’s database and easily accessed through ERP or integrated systems.

Pros and Cons of Using MyInvois Portal

Pros	Cons
Available to all taxpayers, regardless of technical expertise or infrastructure.	Requires manual entry or uploading of invoices, which can be time-consuming.
Straightforward process with a guided form and batch processing via spreadsheet upload.	Lacks integration with existing business systems, limiting automation.
Minimal upfront costs with no need for additional software or infrastructure investment.	All actions are dependent on portal access, including corrections and reporting.
Includes built-in reporting and dashboard tools.
Ensures compliance with IRBM regulations and secure storage in IRBM’s database.

Pros and Cons of Using API Model

Pros	Cons
Seamless and automatic e-invoice submission directly from ERP or accounting systems.	Requires initial investment in technology and potential system adjustments.
Ideal for high-volume transactions with automated processes, reducing human error.	Implementation are complex, requiring technical expertise for integration.
Allows for tailored reporting and dashboards within existing systems.	Requires ongoing system updates and maintenance.
Suitable for large businesses or those expecting growth, handling substantial transaction volumes.	Additional costs if using third-party technology providers (e.g., Peppol or non-Peppol).
Integrated notifications, data retrieval, and invoice sharing enhance operational efficiency.

Which e-invoicing model to choose: API or MyInvois

Choosing between the API and MyInvois Portal for e-Invoicing depends on your business's specific needs, transaction volume, and technological infrastructure.

When to Choose MyInvois Portal

Lower transaction volume: If your business has a lower transaction volume that doesn’t require frequent e-invoice generation.
Limited Technical Resources: If your business does not have in-house IT expertise or the budget to invest in new technology, the portal's user-friendly interface allows you to generate and submit e-invoices without needing advanced systems.

When to Choose API Integration

Large Number of Transactions: If your business processes a high volume of transactions daily, manual e-invoice generation can be extremely time-consuming. API integration enables real-time e-invoice generation as soon as an invoice is created in your system.
Decentralized Billing: For businesses with multiple branches or locations that operate with decentralized billing systems, API integration ensures seamless synchronization of invoices across all branches.
B2C Businesses: If your business is in the B2C sector—such as retail, healthcare, or service industries—where transactions are frequent and involve point-of-sale (POS) systems, API integration automates billing.
Online Invoicing Requirement: For businesses that require online invoicing, like e-commerce platforms, SaaS providers, online travel agencies, and food delivery services, API integration enables automated and efficient e-invoicing directly from your online systems.
Existing ERP Systems: If your business already uses an Enterprise Resource Planning (ERP) system, API integration eliminates the need for additional manual processes to generate e-invoices.

Conclusion

The MyInvois Portal allows manual e-invoice creation and submission through a web interface, while API integration automates e-invoice transmission directly from business systems. The major difference is that the MyInvois Portal is suited for manual and batch processing, whereas API integration supports high-volume, automated invoicing.

Businesses should use MyInvois Portal for simpler, lower-volume needs, and opt for API integration for larger-scale operations requiring seamless automation to directly generate e-invoice through ERP or other business systems.

ClearTax is a leading e-invoicing solution provider that helps businesses to integrate their business systems or ERP with the IRBM e-invoicing system. Click here to book a consultation.

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