Malaysia E-Invoicing Mandate & Eaglessoft Solution
Malaysia has introduced a clearance-based e-invoicing model that requires invoices to be submitted to and authorized by the tax authority (Inland Revenue Board of Malaysia, IRBM / LHDN) before being sent to the buyer.
This approach is part of Malaysia’s broader push for digital tax compliance and better oversight of transactions.
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LHDNM (Lembaga Hasil Dalam Negri Malaysia) or IRB (Inland Revenue Board)
7 years.
XML or JSON.
The planned implementation schedule for the adoption of the national electronic invoicing system in Malaysia is as follows:
- 01/08/2024: Electronic invoicing for taxpayers with an annual turnover of MYR 100 million or more.
- 01/01/2025: Mandatory electronic invoicing for taxpayers with an annual turnover of more than 25 million MYR and up to 100 million MYR.
- 01/07/2025: Mandatory electronic invoicing for all other taxpayers.
Mandatory.
Key Dates & Phased Rollout
Also, from January 1, 2026, for all industries, transactions exceeding RM 10,000 must be invoiced individually (i.e. no consolidation allowed) for certain services like electricity, telecommunications, luxury goods, etc.
Who Will Be Affected?
Exemptions apply for very small businesses under specific turnover limits (e.g. below RM 500,000 in some guidelines).
All businesses registered for tax in Malaysia – rollout is phased by annual turnover (large companies first, then medium, then all businesses).
Both B2B and B2C transactions – including cross-border and self-billing cases.
No exemptions for most sectors – all industries will eventually fall under the mandate, with limited exceptions for very small businesses.
E-Invoice Clearance Model & Infrastructure
At Eaglessoft, we provide a fully compliant, reliable, and scalable solution for the Malaysia mandate.
QUESTIONS ABOUT THE MALAYSIA REGULATION
No, the issuance of e-Invoice is not limited to only transactions within Malaysia. It is also applicable for cross-border transactions.
Yes, all businesses will be required to issue e-Invoice in accordance with the phased mandatory implementation timeline, which is based on the business’ annual turnover or revenue threshold.
The e-Invoice validation by IRBM will be done in near real-time.
IRBM validation includes a series of checks to ensure the e-Invoice submitted to IRBM conforms to the e-Invoice format and data structure as specified by IRBM. Refer to the SDK for further details.
Currently, there are no industries that are exempted from the e-Invoice implementation. Note that certain persons and types of income and expense are exempted from e-Invoice implementation. Refer to Section 1.6 of the e-Invoice Guideline for further details.
For the purposes of e-Invoice, individual taxpayers should provide TIN with prefix of “IG”. Please refer to e-Invoice Guideline for more details on how to retrieve and verify TIN.
Yes. Taxpayers are recommended to perform reconciliation to ensure no duplication of e-Invoice submitted to IRBM.