Update on Malaysian e-invoicing mandate

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Malaysia

05.02.23

Update on Malaysian e-invoicing mandate

In a recent workshop session, Lembaga Hasil Dalam Negeri Malaysia (LHDNM) confirmed the previously mentioned deadlines for mandating e-invoicing for all businesses between 2024 and 2027. Here is a summary of the confirmed timelines:

During 2023, the infrastructure will be prepared, and a pilot project will be launched with selected companies. Companies not selected for the pilot project may voluntarily participate.
January 2024 - voluntary e-invoicing implementation

From June 2024: Mandatory implementation for businesses with annual sales exceeding RM100 million.
From January 2025: Mandatory implementation for businesses with annual sales exceeding RM50 million.
From January 2026: Mandatory implementation for businesses with annual sales exceeding RM25 million.
From January 2027: Mandatory implementation for all businesses.

In accordance with the latest information, the model to be implemented would be Continuous Transaction Controls (CTC) where invoices should be cleared with the tax authority. Businesses will submit their e-invoices to LHDNM for verification via API. After the invoice is approved, the LHDNM will generate a Certification Serial Number and send an email to the issuer and recipient.