E-Invoicing Malaysia - The Timeline

01Introduction

An e-Invoice is a digital representation of a transaction between a supplier and a buyer. e-Invoice replaces paper or electronic documents such as invoices, credit notes, and debit notes.

An e-Invoice contains the same essential information as a traditional document, for example, supplier’s and buyer’s details, item description, quantity, price excluding tax, tax, and total amount, which records transaction data for daily business operations.

02Is e-invoicing mandatory in Malaysia?

Malaysia will introduce a countrywide e-invoicing mandate in June 2024.

The Malaysian government plans to introduce a Centralized Pre-Clearance CTC model on all transactions to increase efficiency and strengthen the tax administration. A gradual introduction of the obligation will commence in June 2024 and end in 2027.

03e-Invoice Implementation Timeline:

e-Invoice will be implemented in phases to ensure a smooth transition. The roll-out of e-Invoice has been planned with careful consideration, taking into account the turnover or revenue thresholds, providing businesses with sufficient time to adapt.

Below is the e-Invoice implementation timeline:

• 1 June 2024 : Taxpayers with an annual turnover or revenue of more than RM100 million
• 1 January 2025 : Taxpayers with an annual turnover or revenue of more than RM50 million and up to RM100 million
• 1 January 2026 : Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM50 million
• 1 January 2027 : All taxpayers and certain non-business transactions

Important notes :

• Taxpayers may volunteer to implement e-Invoice at an earlier date, regardless of annual turnover or revenue.
• The obligation to implement e-Invoice would be independent of the turnover or revenue amounts in the following FY.
• Revenue is based on audited financial statements for the financial year ending 2022 on taxpayers with audited financial statements. Otherwise will rely on tax returns for the year assessment 2022.

04Previous Update on E-Invoicing

The workflow of e-Invoicing

https://www.ktp.com.my/.../e-invoicing-malaysia.../31jul23

05Source

IRB E-Invoicing Guide version 1.0

https://www.hasil.gov.my/en/e-invoice/

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