Mandatory E-Invoicing in Malaysia (MyInvois Platform)

Malaysia introduced mandatory e-invoicing through the MyInvois platform starting in August 2024. All businesses above certain thresholds must submit invoices electronically, where they are validated by the Inland Revenue Board of Malaysia (LHDN) before being issued to buyers.

The e-invoicing system in Malaysia applies to B2G, B2B, and B2C transactions, helping ensure that invoices are accurate, secure, and properly recorded for tax purposes. Each invoice submitted through the MyInvois platform or automatically via API, receives a unique identifier and QR code, which allows both businesses and the Inland Revenue Board (LHDN) to track and verify transactions in real time.

Latest e-invoicing news in Malaysia

Malaysia’s e‑invoicing under the MyInvois system is growing steadily, with the Ministry of Finance reporting that nearly 205,000 businesses have issued over one billion e‑invoices. This shows that more companies, including small and medium businesses, are using digital invoices, helping improve tax reporting and compliance.  To support businesses in adapting, the Malaysian government has also adjusted the e‑invoicing timeline, giving companies more time to meet the phased implementation requirements.

What is e-invoicing and why does Malaysia use it?

In Malaysia, e‑invoicing means sending and receiving invoices electronically in a structured digital format instead of on paper. Businesses can submit invoices through the MyInvois portal manually or integrate their own accounting systems via API for automatic submission. All invoices are validated and stored digitally, making them accurate, secure, and easy to track.

Malaysia uses e‑invoicing to speed up business transactions, reduce errors, improve tax reporting, and increase transparency, while helping both businesses and the government move toward digital and more efficient financial processes.

What is MyInvois?

MyInvois is Malaysia’s official e‑invoicing platform introduced by the Inland Revenue Board of Malaysia (LHDN). It allows businesses to submit and exchange invoices electronically in a structured digital format so that the details can be validated and recorded securely. Instead of sending invoices manually or as simple files, companies connect to MyInvois either through the online portal or through automated system links, ensuring that invoices meet the required standard and can be tracked easily.

Legislation timeline

• 1 August 2024 – Large businesses with an annual turnover above RM100 million must start using MyInvois.
• 1 January 2025 – Businesses with a turnover between RM25 million and RM100 million are required to comply.
• 1 July 2025 – Businesses with a turnover between RM5 million and RM25 million must adopt e‑invoicing.
• 1 January 2026 – Businesses with a turnover between RM1 million and RM5 million must start issuing e‑invoices.
• Smaller businesses with turnover below RM1 million are currently exempt, though voluntary adoption is encouraged by the government to prepare for future compliance.

B2G Transactions

In Malaysia, B2G transactions are mandatory, and government agencies receive e‑invoices through the MyInvois platform. Businesses submitting invoices to the government must comply based on the phased schedule set by the Inland Revenue Board (LHDN), starting with larger companies. The platform requires invoices to be submitted in a structured electronic format, making it easier for the government to process payments and maintain records.

B2B Transactions

In Malaysia, businesses can issue and receive e‑invoices electronically through MyInvois when dealing with other companies. While large companies must follow the phased compliance schedule, smaller businesses may adopt the system voluntarily. 

B2C Transactions

In Malaysia, businesses can also use MyInvois to issue e‑invoices directly to consumers. While small retailers and service providers are not yet required to use the system, it is available for voluntary adoption. This allows businesses to digitally record sales and provide customers with electronic invoices. 

Fiscalization

Malaysia does not currently have a formal fiscalisation like Italy, France and Hungary. Instead, businesses are required to issue proper tax invoices and sales records under the Sales Tax and Service Tax (SST) and Income Tax laws, and keep these records for inspection by the Royal Malaysian Customs Department and the Inland Revenue Board (LHDN). 

E-reporting

In Malaysia, businesses are required to submit accurate tax and sales data electronically to the authorities. Registered companies must file their Sales Tax and Service Tax (SST) returns and income tax returns online through the Inland Revenue Board of Malaysia’s (LHDN) e‑filing systems, ensuring tax information is consistent and traceable. While Malaysia does not yet have a full real‑time e‑reporting, the move toward digital systems such as MyInvois for e‑invoicing and online tax filing helps support clearer reporting, reduce errors, and make compliance simpler for businesses of all sizes.

Non-compliance penalties in Malaysia

In Malaysia, failing to issue or submit e‑invoices as required under the Income Tax Act 1967 is considered an offence. Businesses that do not comply with the e‑invoicing rules may face fines between RM200 and RM20,000 for each instance of non‑compliance, and in some cases imprisonment for up to six months, or both, under Section 120(1)(d) of the Act.

Authorities may also take enforcement action if companies fail to maintain proper e‑invoice records or provide accurate invoice data when required. These penalties encourage businesses to adopt the MyInvois system correctly, help ensure tax reporting is complete, and support compliance with Malaysia’s digital invoicing framework.

Your trusted partner for e-invoicing in Malaysia

Malaysia’s MyInvois platform makes e‑invoicing mandatory for businesses, and DDD Invoices is here to help you navigate it smoothly. We make it easy to issue e‑invoices that comply with government standards, are secure, accurate, and ready for submission to the government, other companies, or customers. 

With DDD Invoices, you’ll get all the benefits of e‑invoicing quicker invoice processing, fewer mistakes, and smoother transactions while staying fully compliant.

FAQs

Who needs to use e‑invoicing in Malaysia?

E‑invoicing is required for businesses based on their annual turnover. Large companies must start first, followed by medium‑sized businesses according to the phased schedule set by the Inland Revenue Board (LHDN). Smaller businesses below the current thresholds are encouraged to adopt MyInvois voluntarily.

Do I need special software to send e‑invoices?

Yes. You can use the MyInvois online portal directly or integrate your accounting system with MyInvois using APIs. Your software must be able to submit structured invoice data as required by the government’s specifications.

What if I make a mistake in my e‑invoice?

If you discover an error, you should correct it as soon as possible according to the guidelines provided by LHDN. The MyInvois system supports updates or adjustments to invoices before they are finalised or used for tax reporting.

Are there penalties for not submitting e‑invoices correctly?

Yes. Under Malaysian tax law, failing to issue or submit e‑invoices when required can lead to penalties under the Income Tax Act 1967, which may include fines or other enforcement actions if the rules are not followed after the compliance dates.