July 2023 – Inland Revenue Board issues guidance for June 2023 launch of mandatory CTC e-invoicing
Malaysia’s Inland Revenue Board (IRBM) has issued guidance notes on the launch of its B2B e-invoicing via a new MyInvois Portal or API interface, and B2C e-Receipt regimes, due to launch on 1 June 2024.
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.
The guidance covers:
- In-scope transactions;
- 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
April 2023 – IRBM confirms phased introduction June 2024 to Jan 2027 mandatory CTC e-invoicing
Malaysia is to become the latest country to introduce mandatory electronic invoicing for Sales and Services Taxes from 1 June 2024 to 1 January 2027. This will cover B2C, B2B and B2G transactions, including imports and exports. It is only applicable to resident taxpayers.
It will be a phased mandatory introduction by the Inland Revenue Board of Malaysia (LHDNM).
- myTax portal adopted as free e-invoicing service
- January 2024 option to voluntarily adopt e-invoicing with LHDNM;
- June 2024 taxpayers with annual turnover of MYR 100 million and above;
- January 2025 annual turnover of MYR 50 million and above;
- January 2026 annual turnover of MYR 25 million and above; and
- January 2027 all other taxpayers.
- January 2027 B2C transactions via e-Receipt live digital reporting
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.
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.
Asia Pacific e-invoicing
| Country | Date | Comments (click for details) |
| Australia | Jul 2023 | PEPPOL-based e-invoicing with no govt intervention B2B |
| China | Jan 2023 | Special e-fapiao VAT invoice being piloted with 2023 full implementation |
| India | Oct 2020 | B2B pre-clearance with separate B2C; completed Apr 2021 |
| Indonesia | Jul 2015 | e-Factur Pajak electronic invoicing |
| Japan | Oct 2023 | Tax qualified invoices |
| Kazakhstan | Jan 2017 | e-invoicing IS ESF |
| Kyrgyzstan | May 2023 | Mandatory e-invoicing for goods |
| Malaysia | Jun 2024 | e-invoicing pre-clearance |
| Mauritius | 2023 | e-invoicing System with digital transaction reporting |
| New Zealand | Mar 2022 | B2G PEPPOL-based e-invoicing |
| Philippines | Jan 2024 | 2022 pilot of e-invoices; to follow South Korea model |
| Singapore | TBC | Mandatory B2G e-invoicing on InvoiceNow |
| South Korea | 2011 | Near real-time invoice reporting |
| Taiwan | 2017 | Electronic GUI invoices; non-residents since 2020 |
| Thailand | 2018 | E-invoice reporting where adopted |
| Vietnam | Nov 2021 | Pre-clearance B2B verification code e-invoice |
