Implementation of e-invoicing

   

An e-Invoice is a digital representation of a transaction between a supplier and a buyer, which replaces paper or electronic documents such as invoices, credit notes and debit notes. It is a file created in a format specified by the IRB that can be automatically processed by relevant systems. It is not an invoice in PDF or Word formats, nor an image of the invoice. 

e-Invoicing applies to all taxpayers undertaking commercial activities in Malaysia, including business-to-business (“B2B”), business-to-consumer (“B2C”), and business-to-government (“B2G”) transactions. However, for certain B2C transactions where end consumers do not require e-Invoices to support the said transactions for tax purposes, the supplier is allowed to issue invoices as per current practice. After a certain period suppliers will be required to aggregate these invoices issued and issue a consolidated e-invoice. 

   

Please see below the e-Invoice implementation timeline:-

  

    

To facilitate taxpayer’s transition to e-invoice, the IRB has developed two distinct e-invoice transmission mechanisms:

Taxpayers can select the most suitable mechanism to transmit e-invoices to the IRB, based on their specific needs and business requirements. 

   

To ensure that businesses are ready for the implementation of e-invoicing, below are a few key steps that can be carried out to assess the readiness and standardisation: