Malaysia

Provinces

General

Provinces

General

About

General

About

General

Regulated by the Royal Malaysian Customs Department (RMCD). Aims to modernize tax reporting, enhance transparency, and ensure tax compliance in line with regional initiatives.

Implementation Timeline

Date	Requirement	Details
2024 (Planned)	Introduction of E-Invoicing Framework	The RMCD plans to introduce a phased approach to e-invoicing, starting with larger businesses to comply with the national tax reporting requirements
2025 (Planned)	Mandatory E-Invoicing for VAT-Registered Businesses	All VAT-registered businesses will be required to issue e-invoices for both domestic and crossborder transactions

Who Needs E-Invoices?

E-invoicing in Malaysia is expected to be mandatory for:

Large Enterprises: Early adoption through pilot programs.
VAT-Registered Businesses: Required to comply under the new framework.
Exporters: Must issue e-invoices for cross-border transactions.
Non-Resident Businesses: Required for transactions with VAT obligations in Malaysia.

E-Invoicing vs. E-Billing

Aspect	E-Invoicing	E-Billing
Purpose	Compliance with RMCD regulations	Informal or customerfocused transactions
Format	Standardized XML via certified platforms	Flexible, non-regulated formats
Usage	Mandatory for taxable transactions	Optional for internal use

Key Features of Malaysia’s E-Invoicing System

Malaysia’s e-invoicing system will involve:

Submission Platforms: Businesses must submit invoices via certified platforms in XML format.
Validation: RMCD validates compliance and assigns a unique Invoice Reference Number (IRN).
Archiving: E-invoices must be stored electronically for 7 years under Malaysian tax laws.

E-Invoicing Dataset

E-invoices in Malaysia are expected to include the following critical data:

Buyer/Seller IDs: Taxpayer identification numbers.
Invoice Details: Invoice number, issue date, and payment terms.
Goods and Services: Descriptions, quantities, unit prices, and VAT/GST details.
Taxes: Applicable VAT or GST rates and amounts.
Transaction Info: Total amount payable, currency, and payment method.
Digital Signature: Ensures authenticity and data integrity.

E-Invoicing Across Transaction Types

B2B Transactions;

Mandatory to ensure compliance with VAT regulations.
Streamlines cross-border transactions and VAT refunds.

B2C Transactions:

Not yet mandatory but encouraged for transparency and process optimization.

B2G Transactions:

Required for government-related transactions to ensure compliance and transparency.

Penalties for Non-Compliance

Non-compliance with Malaysia’s e-invoicing regulations may result in:

Fines: Monetary penalties for failure to issue or report e-invoices correctly.
Operational Challenges: Rejected invoices can disrupt payments and business operations.
Legal Risks: Risk of audits and reputational damage for repeated violations.

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