The Inland Revenue Board of Malaysia (IRBM) has recently released updates regarding Malaysia’s e-Invoicing on the 28th of January 2025.
Key Updates
IRBM published:
- E-Invoice Guideline (Version 4.1), replacing Version 4.0.
- E-Invoice Specific Guideline (Version 4.0), replacing Version 3.1.
- Updated General and Industry-Specific Frequently Asked Questions (FAQs).
These documents are accessible on the IRBM’s official website.
Phased Implementation Timeline
The mandatory adoption of e-Invoicing will occur in stages:
- For taxpayers with annual turnover exceeding RM100 million:
Implemented on 1 August 2024 with grace period from 1 August 2024 to 31 January 2025
- For taxpayers with annual turnover between RM25 million and RM100 million:
Implementation begins on 1 January 2025 with grace period from 1 January 2025 to 30 June 2025
- For all other taxpayers, including new businesses commencing operations from 2023 onwards:
Implementation begins on 1 July 2025 with grace period from 1 July 2025 to 31 December 2025
During these grace periods, penalties may still apply if the IRBM’s requirements are not met. Consolidated or self-billed e-Invoices must be submitted within seven calendar days after the end of the month.
How Businesses Should Prepare
To ensure a seamless transition to e-Invoicing, businesses should focus on the following areas:
1. People:
- Have a dedicated project team to oversee the implementation.
- Inform stakeholders (customers, suppliers, employees) of their roles and responsibilities in the e-Invoice framework, both during and after implementation.
2. Process:
- Assess and revise invoicing procedures to align with IRBM’s requirements, including self-billed invoices.
- Collect the necessary information from suppliers and customers to complete e-Invoices accurately.
3. System:
- Choose a suitable submission method (MyInvois Portal, direct integration, or middleware solutions)
- Develop contingency plans to address potential system downtimes.
Why E-Invoicing Matters
E-Invoicing is not just about compliance; it’s a step forward in modernizing Malaysia’s tax ecosystem. By streamlining invoicing processes, businesses can improve operational efficiency, enhance transparency, and minimize errors in their tax submissions.
Start your transition early to ensure a smooth adoption. Let us help you prepare for the change.
Email: tax@battchoo.com
Phone: +603-78809918
Website: https://www.battchoo.com/