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Malaysia e-invoicing Aug 2024; pilot update

Aug 2024 phased e-invoicing – May pilot software kit release

The Malaysian Inland Revenue (LHDN) has confirmed the May 2024 launch of a pilot with over 50 businesses to trial its new Continuous Transaction Control CTC e-invoicing model, requiring sales invoices (XML) to be first sent to the tax authorities for verification via the government’s API.

A beta version of its software development software was released on 9th February 2024. This helps businesses and ERP businesses build their integration to the e-invoicing portal, MyInvois. It includes: release notes; API details to link to MyInvois; and Frequently Asked Questions.

Phased rollout of e-invoicing Aug 2024 to Jul 2025

The first wave of mandatory taxpayers, about 4,000 taxpayers, will start in August.

The timetable for the pre-clearance electronic invoicing regime is:

  1. 1  August 2024: taxpayers with annual turnover of MYR 100 million (approx $21m) and above;
  2. 1 January 2025: taxpayers with annual turnover between MYR 25 million (approx $5m) and MYR 100 million;
  3. 1 July 2025: all other taxpayers

Oct 2023: new guideline and catalogue v2.1

the LHDN published new v2.1 e-invoicing guideline and catalogue. The guidance covers:

  • In-scope transactions;
  • Transaction types
  • Implementation timelines
  • Data fields required
  • Using MyInvois Portal – submissions, validations, notifications, sharing with counter-parties, rejections,
  • Submitting via the API
  • FAQ’s
  • Data security and privacy issues

Need help complying with the new Malaysian requirements? A simple, and quick connection from your ERP, marketplace or invoicing system to our VAT e-invoicing product is all that is required. This can cover you for Malaysia, Singapore, Australia, New Zealand, Indonesia and Japan. Contact us to learn more.

23 Oct 2023: E-invoicing 3 phased launch starting Aug 2024 to Jul 2025

The Malaysian 2024 Budget submitted to parliament today includes a two-month delay to the start of the phased implementation of mandatory e-invoicing. The new timetable for the pre-clearance electronic invoicing regime is:

  1. 1  August 2024: taxpayers with annual turnover of MYR 100 million (approx $21m) and above;
  2. 1 January 2025: taxpayers with annual turnover between MYR 25 million (approx $5m) and MYR 100 million;
  3. 1 July 2025: all other taxpayers

To be confirmed: B2C transactions via e-Receipt live digital reporting

The previous timetable was for a 1 June 2024 launch for large taxpayers, and then phased 2025-26 launches for trances of smaller businesses.

Malaysia will operate a Continuous Transaction Control CTC model, requiring sales invoices (XML) to be first sent to the tax authorities for verification via the government’s API. Once approved, the invoice is given a unique digital Certification Serial Number.  Once returned to the seller, only then can it be sent to their customer in any format. There will be a PEPPOL option for this exchange of invoices. A QR Code must be included with the invoice sent to the customer.

For B2C, transactions where e-Invoices are not required by the end consumers to support the said transactions for tax purposes, suppliers will be allowed to issue a normal receipt or invoice in accordance with the current practices adopted by suppliers. After a certain period or timeframe, suppliers would be required to aggregate the normal receipts or invoices issued to end consumers and issue a consolidated e-Invoice to support the transactions made with end consumers. Further guidance on this will be provided in due course.

 

This is part of a broader digitisation of tax administration. A pilot will kick-off at the start of 2024 with a phased introduction for other taxpayers during the rest of the year.

E-invoicing has been permitted in Malaysian since 2015. Both parties, the vendor and customer, must be in agreement.  Electronic invoices should be retained for at least seven years.

VATCalc’s international live VAT invoice transaction and e-invoice tracker on real-time transaction-based tax reporting lists all the countries imposing transaction-based reporting.

Malaysia had introduced a full VAT regime – termed Sales and Services Taxes – between 2015 and 2018. But it returned to the old sales tax, Goods and Services Taxes. It is likely that Malaysian GST will return.

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Asia Pacific e-invoicing

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