e-Invoicing in Malaysia
The Malaysian government is rolling out e-Invoice gradually to make tax management smoother as part of their plan to boost digital services. This new system lets businesses quickly validate and save transaction records for sales to other businesses, consumers, and the government.
For businesses, there are two ways to send e-Invoices to the tax authority:
1. MyInvois Portal:
– It’s like a website run by the tax authority.
– Anyone can use it for free, even if they don’t have special connections.
2. Application Programming Interface (API):
– This is a techie thing that lets systems talk to each other directly.
– It needs some upfront investment in technology and changes to your existing systems.
– It’s good for big businesses or ones that do lots of transactions.
With e-Invoice, when a sale happens, the seller can send the e-Invoice through either the MyInvois Portal or API. Then, the tax authority stores these validated e-Invoices so businesses can easily look up their past transactions.
It will be implemented in phases with Phase 1 from 1 August 2024, taxpayers with an annual turnover or revenue exceeding RM100 million will be required to comply with the e-Invoice system.
From 1 January 2025, it will be Phase 2 where this requirement extends to taxpayers with an annual turnover or revenue between RM25 million and RM100 million.
The final phase will be starting from 1 July 2025, all taxpayers will need to adhere to the e-Invoice system.
Disclaimer: The information provided in this article serves as a general guide. However, it is essential to recognize that each case is unique and can be influenced by various factors. Laws and regulations may change over time, and individual circumstances may require tailored approaches. The author of this article make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the information provided herein. The article’s content is for informational purposes only and should not be considered as legal advice or a substitute for professional consultation. Readers should always consult with qualified professionals for advice on specific matters and the interpretation of applicable laws and regulations.
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