E-invoicing in Malaysia via MyInvois

An e-invoice is a document generated in the prescribed format by the LHDN, enabling automatic processing by a relevant system. It acts as a digital confirmation of a transaction between a seller and a buyer. Want more information? Read our blog article, "What is e-invoicing?"

LHDN stands for Lembaga Hasil Dalam Negeri, which is the Inland Revenue Board of Malaysia. It is the government agency responsible for administering, assessing, collecting and enforcing payment of various taxes in Malaysia, including personal income tax, corporate tax, and goods and services tax, among others. LHDN plays a crucial role in Malaysia's fiscal policy and tax administration, ensuring compliance with tax laws and regulations.

MDEC, the Malaysia Digital Economy Corporation, is a government agency under the purview of the Ministry of Communications and Multimedia Malaysia. MDEC focuses on driving digital transformation, adoption, and innovation within the country. Its initiatives aim to foster growth in digital technology sectors, encourage investment in digital businesses and enhance Malaysia's role as a global player in the digital economy. 

In the context of Malaysia's national e-invoicing initiative, MDEC plays the role of accrediting Malaysia's Peppol service providers and Peppol ready solution providers such as Pagero.

The mandate covers all transactions within the provision of goods and services and certain non-business transactions between individuals. 

All businesses (B2B and B2G) engaged in the provision of goods and services and certain non-business transactions between individuals (B2C).

The implementation of the e-invoicing mandate is planned on a gradual basis:

•         from 1 August 2024: Taxpayers with an annual turnover or revenue of more than RM 100 million (ca. EUR 20,000,000).

•           from 1 January 2025: Taxpayers with an annual turnover or revenue of more than RM 25 million (ca. EUR 5,000,000).

•                from 1 July 2025: All other taxpayers.

The following documents fall under the scope of Malaysia's e-invoicing mandate:  

• Complete e-invoice (“Invois”)
• Credit note
• Debit note
• Refund e-invoice
• Self-billed e-invoice
• Self-billed credit note
• Self-billed debit note
• Self-billed refund note

Yes. The e-invoice mandate covers both domestic and cross-border transactions.  The domestic transactions include B2B, B2G and B2C scenarios. The cross-border transactions include import (to be reported from the AP side as a self-billed e-invoice) and export activities (to be reported from the AR side as an e-invoice).