Understanding E-Invoice

An E-Invoice is a digital file, created in a specific format as notified by the Inland Revenue Board of Malaysia (IRBM). This format allows for automatic processing by a related system. E-Invoicing is applicable to all taxpayers in Malaysia who are involved in commercial activities. This includes businesses providing goods and services, as well as individuals involved in specific non-commercial exchanges.

Scope of E-Invoicing

E-Invoicing in Malaysia encompasses various types of transactions, including:

• Business to Business (B2B)
• Business to Customer (B2C)
• Business to Government (B2G)

The Rollout of E-Invoice in Malaysia

The phased implementation of the e-Invoicing initiative in Malaysia is set to commence from June 2024. To guide this process, the IRBM released an e-Invoice Guideline (Version 2.1) on 28 October 2023. This guideline provides comprehensive instructions on key aspects of e-Invoice, including its implementation, compliance requirements, and recordkeeping.

Advantages of E-Invoice

E-Invoicing offers a multitude of benefits such as:

• Streamlining business processes
• Reducing paperwork
• Accelerating payment cycles
• Enhancing accuracy in invoicing
• Improving customer service

Our services include:

• Research and select an e-invoicing solution that aligns with your business needs and compliance requirements.
• Determine how the e-invoicing solution will integrate with your existing accounting, ERP, and other relevant systems.
• Provide training and education to your employees on how to use the e-invoicing system effectively.
• Conduct thorough testing and validation of the e-invoicing solution to ensure it meets your business requirements and regulatory compliance standards.
• Establish processes for generating compliance reports and submitting required documentation to regulatory authorities
• Embrace a culture of continuous improvement to adapt to changing regulatory requirements, technological advancements, and evolving business needs.