How to Submit, Validate, and Issue e-Invoices in Malaysia

Learn the simple steps to issue compliant e-invoices in Malaysia. Find out how to streamline your invoicing process and meet regulatory requirements.

By
Ajith Kumar M
April 2, 2024
6 min

E-invoicing is changing the game for businesses in Malaysia. It's a smart way to speed up transactions, improve security, and reduce errors. To make the most of it, it's important to understand the process. We're here to show you the simple steps to submit, validate, and issue e-invoices. Get ready to make your business transactions smoother and more efficient!

The process of submission, validation, and issuance of e-invoices in Malaysia can be understood in a simplified steps.

Step 1: Preparation

  • Ensure Readiness: Make sure your business systems are capable of generating e-invoices that comply with the Inland Revenue Board of Malaysia (IRBM) standards.
  • Gather Required Information: Collect all necessary details such as supplier and buyer information, transaction details, tax calculations, etc.

Step 2: Creation of e-Invoice

  • Generate e-Invoice: Use your accounting or invoicing software to create an e-invoice. Ensure that it includes all mandatory fields as prescribed by the IRBM.
  • Apply Digital Signature: If required, apply a digital signature to the e-invoice for authentication purposes.

Step 3: Submission

  • Choose Submission Method: Decide whether to submit the e-invoice via the MyInvois Portal or through an Application Programming Interface (API) if you have a high volume of transactions.
  • Submit e-Invoice: Upload or transmit the e-invoice to the IRBM's system for validation.

Step 4: Validation by IRBM

  • Automatic Validation: The IRBM's system will automatically validate the e-invoice in real-time or near real-time.
  • Error Checking: The system checks for errors or discrepancies. If any are found, the e-invoice is rejected, and the issuer is notified to make corrections.

Step 5: Issuance and Sharing

  • Receive Validation: Once validated, the e-invoice is officially issued. The issuer receives a confirmation along with a unique identifier number from the IRBM.
  • Share with Buyer: The validated e-invoice, often with a QR code for easy verification, is shared with the buyer electronically.

Step 6: Correction Window (If Required)

  • 72-Hour Window: If there are errors discovered after issuance, there is a 72-hour window during which the issuer can request a cancellation or correction of the e-invoice.

Step 7: Record Keeping

  • Store e-Invoices: Both the issuer and the recipient should store the validated e-invoices for their records and future reference.

Step 8: Reporting and Reconciliation

  • Regular Reporting: Businesses may need to report their e-invoice transactions periodically to the IRBM as part of their tax filings.
  • Reconciliation: Ensure that all e-invoice transactions are accurately recorded and reconciled in your accounting records.

By following these steps, businesses in Malaysia can successfully navigate the process of submission, validation, and issuance of e-invoices, ensuring compliance with the IRBM's requirements and streamlining their financial transactions.

Conclusion

You're now equipped to use e-invoicing in Malaysia effectively. Keep in mind, being precise and staying updated with the rules is crucial. By following these steps, your business will not only run more smoothly but also stay in line with regulations. Embrace this digital change and watch your business thrive with hassle-free invoicing.