ALL OUR CUSTOMERS HAVE SUCCESSFULLY GONE LIVE
Our solution supports POE, POI & DOC ARCHIVAL
4 WAYS & DURATION OF E-INVOICE SUBMISSION
The duration of e-Invoice submission varies from individual capabilities and types of e-invoices
Launched - 22nd June 2024
MyInvois Portal Is Ready
Phase 1 Participants
As a prerequisite – Customers require Digital Signature and an email from LHDN with the passcode for account creation
- PIN activation link will be sent to Company Director (refer to MyTax Portal)
- To access Myinvoise Portal (TE: Testing Environment), Company Director is required to complete First Time Login to MyTax Portal (TE)
- Company Director may refer to User Guide for step-by-step guidance. All data submitted is for testing purpose
Malaysia e-Invoice Solution
Malaysia's LHDN e-Invoice Compliance
Latest update from the LHDN: The Inland Revenue Board (LHDN) has announced that the government has agreed to give a 6-month grace period to taxpayers from the date of mandatory implementation of e-invoicing which starts on 1 August. Its CEO, Datuk Abu Tariq Jamaluddin said that the grace period is to ensure the smooth implementation of the system. (thestar.com.my)
Benefits of e-Invoice
UNIFIED INVOICING PROCESSING
FACILITATED TAX RETURN FILLING
ENABLES STREAMLINING OF OPERATIONS
DIGITALIZED FINANCIAL REPORTS
Malaysia e-Invoice Guideline
LHDN released the much-awaited guideline on the 21st of July 2023. There is a page on LHDN’s website that is dedicated to the e-Invoice initiative. You can obtain updates and news from LHDN from this site as illustrated.
Nevertheless, if you do not have access to the guide, please download it from the highlighted link below. There is an anticipation of further updates to the guide shortly; such as more information as to how retail-related invoices will be treated as compared to B2B transactions.
Furthermore, e-invoice will be implemented in phases to ensure a smooth transition. The roll-out of e-invoice has been planned with careful consideration, taking into account the turnover or revenue thresholds, providing businesses with sufficient time to adapt. The chart on the right is the tight e-invoice implementation timeline. As a result, please refer and act accordingly.
(https://www.hasil.gov.my/en/e-invoice/)
General guidelines ver3.2: irbm-e-invoice-guideline.pdf (hasil.gov.my)
Specific Guidelines ver3.0: irbm-e-invoice-specific-guideline.pdf (hasil.gov.my)
Phase 1 (>100MIL) - August 1st 2024 - Jan 31st 2025 (Interim Relaxation Period)
Phase 2 (Between 25MIL & 100MIL) - Jan 1st - June 30th 2025 (Interim Relaxation Period)
Phase 3 (All) - July 1st - Dec 31st 2025 (Interim Relaxation Period)
Updated New Guideline
Updated on 10th Aug 2024 based on e-Invoice Guideline version 3.2 & Specific Guideline 3.0, dated on 30 July 2024
A) 2 Scenarios for e-Invoice to be issued
2. Proof of Expense
B) 4 type of e-Invoice transactions - proof of income and expenses
2. Credit Note
3. Debit Note
4. Refund
C) 4 Types of e-Invoice submission
2. Self-Billed e-Invoice
3. Consolidated e-Invoice
4. Frequency of Billing
D) Exemption list from e-Invoice
2. Government, State Gov't and State Authority, Local Authority
3. Statutory authority and statutory body
4. Facilities provided by Gov't
5. Consular offices and diplomatic officers and related employees
6. Individual who is not conducting business
7. Taxpayers with an annual turnover or revenue of less than RM150,000
How does e-Invoice Compliance Works ?
This is an overview of the e-Invoice workflow from the point a sale is made or transaction is undertaken, and an e-Invoice is issued by the supplier via MyInvois Portal or API, up to the point of storing cleared e-Invoices on LHDNM’s database for taxpayers to view their respective historical e-Invoices.
Importantly, the focus of our solution is the e-invoice model via API.
API allows taxpayers to submit e-invoices directly to LHDNM. Simultaneously, Taxpayers would need to configure the API integration by setting up call-backs (specific taxpayers’ system addresses) and logging into the available LHDNM APIs via the Digital Certificate issued by LHDNM (authentication mechanisms).
The e-invoice structure has been, specifically, designed to cater to B2B, B2G, and B2C transactions to ease e-invoice procedures for businesses and individual taxpayers. The following formats will be available for the transmission of e-invoice data:
Firstly, Extensible Markup Language (XML): XML is defined as a simple text-based format for representing structured information. It is one of the most widely used formats for sharing field-structured information today. The syntax rules for XML are strict. It will not process files that contain errors and error messages will be sent to inform that rectification is required. Almost all XML documents can be processed reliably by computer software.
Secondly, is JavaScript Object Notation (JSON): JSON is a lightweight text-based data interchange format that is simpler to read and write as compared to XML. Though it is derived from a subset of JavaScript, it is language-independent. Therefore, the code for generating and parsing JSON data can be written in any other programming language.
Formats for transmission:
There are 58 data fields in SDK that are required to issue an e-Invoice. These fields are grouped into 8 categories:
1. Address
2. Business Details
3. Contact Number
4. Invoice Details
5. Parties
6. Party Details
7. Payment Info
8. Products / Services
In addition, for specific circumstances, an annex will be required to be submitted as part of the e-Invoice to LHDNM.
For drop shipment - export & import, an additional 2 mandatory data fields to be submitted.
XML
JSON
GET A FREE E-INVOICE
READINESS ASSESSMENT TODAY
You can begin your E-invoicing journey with us. Just contact us now! We can provide a free E-Invoice Readiness Assessment. Our assessment will provide you an insight and guidance on how you can plan to fulfill Malaysia e-invoice mandate.
Explore our solutions to your Malaysia e-Invoice Compliance
MountainTop e-Invoice Solution
1) Our MountainTop e-Invoicing solution is compatible with any standard ERP such SAP, Oracle, Navision, etc.
2) We developed an e-Invoicing solution that is globally compliant with each country’s requirements or with PEPPOL standards.
3) As a middleware, the MountainTop e-Invoice solution works to integrate your current ERP with LHDN through API.
4) MountainTop e-Invoice solution will obtain the required data from your current ERP. For any missing data from your current ERP, users can update or maintain it through MountainTop e-Invoice console.
Pronto Xi ERP with e-Invoice Ready
1) Pronto Xi system already has e-Invoicing module build in and ready to use but, of course we need to fine tune according to Malaysia’s LHDN SDK (Software Development Kit) guidelines
2) In order to comply with LHDN’s requirement, Pronto already has e-Invoicing features build in such as additional configurations and master fields.
3) Pronto Xi comes with PEPPOL ready-made framework.
EXPLORE NOW OUR MOST COMPLETE E-INVOICE MIDDLEWARE
PROOF OF EXPENSE
PROOF OF INCOME
ARCHIVAL LIBRARY
ERP UPDATE