e-Invoicing

Ready for action?

The Inland Revenue Board (IRB) had announced that the e-Invoicing initiative will be implemented in phases beginning August 2024. Several guidelines have been issued to provide step-by-step guidance of key aspects of e-Invoicing.

e-Invoicing is applicable to all taxpayers undertaking commercial activities in Malaysia. The mandate extends to both domestic and international transactions. The scope of e-Invoicing typically encompasses business-to-business (B2B), business-to-consumer (B2C) and business-to-government (B2G).

Explore the complexities and nuances involved in implementing e-Invoicing for your business — from changes in technical processes to organisational culture and strategies — and the integration model options available to you.

Switching gears

Implementing e-Invoicing as digital reporting services can be tricky due to the complexity of  businesses' current accounting systems and compliance requirements imposed by tax authorities. Ensuring the consistency, completeness, and correctness of data will be a challenge, especially when dealing with large volumes of transactions and diverse data sources.

Transitioning to e-Invoicing will involve significant changes in not just technical processes but  organisational culture and management strategies as well.

Keeping up with evolving legal and regulatory framework

Changing management strategy

Assess available technology solutions on your current accounting system

e-Invoicing timeline: Full speed ahead

The first stage of e-Invoicing implementation begins in August 2024 and is mandatory for taxpayers with annual turnover or revenue of more than RM100 million per year. However, the IRB also welcomes organisations who fall outside of this criterion but are ready to volunteer themselves for the implementation.

Mandatory for taxpayers with annual turnover or revenue of >RM100 million

Note: Taxpayers can voluntarily participate in the implementation at an earlier date, regardless of annual turnover or revenue 

Mandatory for taxpayers with annual turnover or revenue of >RM25 million and up to RM100 million.

Note: Taxpayers can voluntarily participate in the implementation at an earlier date, regardless of annual turnover or revenue 

Mandatory implementation for all other taxpayers.

Details on Interim Relaxation Period and other relevant details

IRB recognises the challenges faced by taxpayers to implement e-Invoice. They have introduced a six-month grace period to help taxpayers transition to the new e-Invoicing rules. The details are as follows:

Flexibility for 6 months

The flexibility provided is as follows:

Consolidated e-Invoice
All industries / activities are allowed to issue consolidated e-Invoices, including self-billed e-Invoices

Data field
Any description of transaction may be entered into the “Description of product or service” field

Request for e-Invoice
Where there is a request for e-Invoice from the buyer, the seller is allowed to issue consolidated e-Invoice without the need to issue an e-Invoice for each transaction

Gearing up for success

Evaluating your options for data integration in your e-Invoice flow

Based on IRB's guideline, there are two mechanisms to transmit e-Invoices to IRB’s database. The first option is through the MyInvois Portal, a free solution/portal hosted by IRB, and the second is through application programming interface (API). Under the Malaysia Digital Economy Corporation (MDEC)’s National e-Invoicing Initiative to digitalise business operations, MDEC also provides an option for businesses to implement e-Invoicing using the Peppol framework.

Option 1:
The formula racing car

Direct integration via API

This option directly links up your Enterprise Resource Planning (ERP) or billing systems to IRB's MyInvois System.

Why choose this option

  1. Additional modules offered by ERP to meet e-Invoicing requirements
  2. Company’s preference on in-house solution integrator

     

Option 2:
The sports car

Integration through middleware

This option uses a middleware (in our case, a PwC tool) to connect to IRB's MyInvois System.

Why choose this option

  1. Comprehensive offering for end-to-end e-Invoicing compliance
  2. Viability to make multiple changes expected throughout the implementation phases - limited changes in ERP
  3. E-reporting capabilities

PwC Offering

Many companies have either fully embraced e-Invoicing or have yet to make significant progress in this area. To better meet your needs, PwC is pleased to offer a holistic and sustainable approach designed to ensure confidence in your e-Invoicing compliance. Our e-Invoicing strategy, aligned with PwC's NextGen framework, is built on three key phases: Align and Mobilise (Pre-Implementation), Engage and Enable (Implementation), and Sustain and Evolve (Post-Implementation).

Align and Mobilise

Impact assessment
Conduct a fit-gap analysis of your existing processes to identify areas for improvement and provide tailored recommendations. We focus on aligning your operations with industry best practices to optimise efficiency and compliance.

Decide tools
Leveraging insights from the Impact Assessment, we evaluate your data and system to recommend suitable e-Invoicing solutions. Our expert guidance ensures you select the tools that best meet your organisation’s needs and future growth.

Workshops and Trainings

Equip your team with the skills to navigate the complexities of e-Invoicing through our comprehensive general and customised training programmes to meet your requirements.

Navigating the MyInvois Portal

Launched on 1 August 2024, the MyInvois Portal was designed by the Inland Revenue Board of Malaysia to facilitate the implementation of e-Invoice for all taxpayers, especially for SME companies and those who are not using any accounting system to issue e-Invoices.
 

Objectives

MyInvois Portal: A backup option when integration tools fail

There may be instances where your integration tools encounter system failures. This is why it is necessary to equip yourself and the team with the knowledge of navigating the MyInvois Portal as part of your back-up plan, so that disruption to your business is kept to a minimum.

An interactive virtual learning session

We will be hosting a webinar to walk fresh starters and key users of the MyInvois Portal through key features and functionalities of the MyInvois Portal. 

There will also be a panel discussion with live Q&A for you to ask us any questions at the end of the webinar.

Topics covered
  • Introduction of the MyInvois Portal
  • Registration and profile setup
  • Submission of documents through the MyInvois Portal
  • Reporting and other features
Who should attend

Fresh starters or key users to the MyInvois portal

Date: Please click the 'Register now' button to view our latest available sessions

Duration: 4 hours

Time: 9am - 1pm

Location: Virtual

Fees: 

  • Individual - RM800/pax (excluding SST)
  • Group bundle (Special rate for registration of three pax and above) - RM500/pax (excluding SST)

HRDF claimable, subject to HRDF T&C’s

Register now

PwC Value Proposition

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Contact us

Lavindran Sandragasu

Lavindran Sandragasu

Partner, Tax, PwC Malaysia

Tel: +60 (3) 2173 1494

Mohd Haizam Abdul Aziz

Mohd Haizam Abdul Aziz

Director, Tax, PwC Malaysia

Tel: +60 (3) 2173 5355

Jeannie Chin Yee Shee

Jeannie Chin Yee Shee

Senior Manager, Tax, PwC Malaysia

Tel: +60 (3) 2173 1188