Malaysia mandates E-Invoicing starting August 2024: It’s time to go fully digital!
As technology and automation advance, businesses worldwide are moving to electronic invoicing (or E-Invoicing) at a growing rate. The Inland Revenue Board of Malaysia (IRBM) is mandating E-Invoicing in a phase-by-phase approach, starting from businesses with an annual turnover over RM 100 million as Phase 1. This initiative is part of a bigger project towards digital transformation of the Malaysian economy.
E-Invoicing explained
An E-Invoice is a digital document that represents a transaction between a supplier and a buyer. It is a standardised format that replaces all other invoice formats, such as paper, scanned and PDF invoices.
E-Invoices can be used for all types of transactions, including:
- Business-to-Business (B2B),
- Business-to-Government (B2G),
- and eventually Business-to-Consumer (B2C).
E-Invoicing implementation timeline in Malaysia
- August 1, 2024 : Mandatory for business taxpayers with annual turnover of MYR 100 million or more.
- January 1, 2025: Mandatory for business taxpayers with annual turnover of more than MYR 25 million.
- July 1, 2025: Mandatory for all other taxpayers.
What’s next?
The E-Invoicing mandate is designed to benefit businesses in several ways, helping them to digitise their operations and improve tax compliance. Research shows that businesses can save up to 65% on invoicing costs and reduce processing time by 12 days by adopting an E-Invoicing system.
“Principally, when it is fully implemented, the E-Invoicing initiative will reduce the burden of record keeping by taxpayers. (By then) A lot of (their) information would be with the IRB, already. E-Invoicing will change everything.” – IRB Chief Executive Officer, Datuk Dr Mohd Nizom Sairi.
At LinkFor, we aim to help Malaysian businesses adapt to and comply with the E-Invoicing mandate requirements. We provide customised solutions that align with enterprise invoicing needs, regardless of the industry type or current internal workflows. For more, visit www.linkfor.asia/my.
