E-Invoicing in Malaysia 

Important Information about the e-invoicing mandate in Malaysia 

The Malaysian Government has announced that it will use PEPPOL for its future e-invoicing exchange model and implement a CTC mandate with a Pre-Clearance model.  

In October 2023, the Inland Revenue Board of Malaysia (IRBM) announced that e-invoicing would be gradually implemented from 1 August 2024. It was confirmed that Malaysia is set to adopt a Continuous Transaction Control (CTC) clearance model. Initially, the project is expected to involve approximately 4000 companies, that meet the specified criteria.  

This mandate will cover B2B (business to business), B2G (business to government) and B2C (business to customer) transactions. All types of e-invoices will be covered from the start of the implementation.  

Timeline for the implementation 

The implementation of the e-invoicing mandate will follow this timeline: 

• In January 2024 the voluntary phase began 
• Mandatory implementation for businesses with annual sales exceeding 100 million MYR (approximately 20 million Euros) starting from August 2024. 
• Mandatory implementation for businesses with annual sales exceeding 50 million MYR starting from January 2025. 
• Mandatory implementation for businesses with annual sales exceeding 25 million MYR starting from January 2026. 
• Mandatory implementation for all businesses as of January 2027.  

Coverage 

The upcoming e-invoicing regulations will cover both domestic and cross-border invoices. Domestic e-invoices will typically be invoices sent from a company required to pay tax in the specific country. 

As part of the e-invoicing mandate in Malaysia, it will also be mandatory to report incoming and outgoing invoices if they are to or from a foreign company. This is a model that is also used in Italy. For cross-border transactions, Malaysian taxpayers must issue self-billed e-invoices to document expenses. It is important to note that foreign parties are exempt from adopting the Malaysian e-invoicing system.  

Ensure seamless compliance with Malaysia’s e-invoicing mandate by visiting TrueCommerce today. Our comprehensive solutions streamline your e-invoicing process and ensure smooth integration. 

PEPPOL in Malaysia 

Malaysia is using the PEPPOL PINT format. The PEPPOL network will be the preferred network to exchange invoices, but other networks will be allowed. However, we are  confident that PEPPOL will be the leading network for exchanging invoices in the future within Malaysia. 

MyInvois – The CTC platform in Malaysia 

Malaysia will be implementing a CTC model with pre-clearance and PEPPOL exchange. Companies will therefore need to send their invoices to the MyInvois portal for pre-clearance.  

This means that the invoices will have to be approved by the government before sending It to the receiver. Also, it is important to know, that after the invoice have been approved, it will be sent via the PEPPOL network first and then the invoice will reach the receiver. 

How can TrueCommerce help? 

TrueCommerce removes complexity from your processes. Understanding that staying op top of the e-invoicing requirements being rolled globally is challenging, we help businesses comply with their e-invoicing requirements as part of our managed service. Businesses simply send their e-invoices to us and we do the rest. As part of the PEPPOL Network, we ensure that all your invoices are accurately sent to your receiver after passing through the network.