E - Invoice
What is E - Invoice?
The LHDN e-Invoice is not a human-readable PDF invoice; instead, it is designed in a machine-readable format. Malaysia’s LHDN e-Invoice system only accepts XML and JSON files, and does not support PDF, DOC, JPEG, or email formats. This machine-readable format ensures seamless integration with the tax system for efficient processing and compliance.
Every invoice must be submitted to LHDN (Inland Revenue Board of Malaysia) for approval and validation before it can be issued as a verified invoice to the customer. The validation process by IRBM includes checking the Taxpayer Identification Number (TIN) and ensuring the e-Invoice follows the correct data structures and formats. Once the e-Invoice is validated, the supplier is required to share the approved invoice with the buyer, incorporating a QR code that links to the validation status. This QR code, provided by IRBM, allows the buyer to verify the authenticity and status of the e-Invoice through the MyInvois Portal.
How e-Invoice Works?
STEP1:
ISSUANCE OF
E-INVOICE
When a sale or transaction is made (including e-Invoice adjustments), the supplier creates an e-Invoice and shares it to IRBM via MyInvois Portal or API for validation.
STEP 2:
VALIDATION OF
E-INVOICE
IRBM validation is performed in real-time, ensuring that the e-Invoice meets the necessary standards and criteria.
Once validated, the supplier will receive a Unique Identifier Number from IRBM via MyInvois Portal or API
STEP 3:
NOTIFICATION OF VALIDATED
STEP 4:
SHARING OF E-INVOICE
STEP 5:
REJECTION OR CANCELLATION
Upon issuance of e-Invoice, a stipulated period of time is given to :
- Buyer to reject the e-invoice
- Supplier to cancel the e-invoice
STEP 6:
MYINVOIS PORTAL
e-Invoice Implementation Timeline
| TARGETED TAXPAYERS | IMPLEMENTATION DATE |
|---|---|
| ANNUAL TURNOVER OR REVENUE OF MORE THAN RM100 MILLION | 1 AUGUST 2024 |
| ANNUAL TURNOVER OR REVENUE OF MORE THAN RM25 MILLION AND UP TO RM100 MILLION | 1 JANUARY 2025 |
| ALL TAXPAYERS | 1 JULY 2025 |