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E-invoicing is required in Malaysia

Electronic invoicing, or "e-Invoicing," is becoming required for enterprises by the Malaysian Inland Revenue Board (IRB). August 2024: Businesses that generate more than RM100 million in revenue annually must employ e-invoicing. Regardless of sales volume, e-invoicing will be required for all Malaysian enterprises by July 2025.

Introductory File Upload
Businesses can upload and synchronise their invoices with the government platform using one of two techniques described in the IRB's e-invoice recommendations. This makes the main points clearer and speaks in easier terms. 

Forget paper invoices, upgrade to e-invoices for a faster, more secure way to get paid!

E-invoices are like supercharged invoices that zip through your systems, slash errors, and save you time and money.

Here's why you should ditch the paper and switch to e-invoices:

• Lightning speed: Get paid instantly with automatic invoice delivery and processing.
• Effortless workflows: Say goodbye to manual data entry and hello to a smooth accounts payable process.
• Error-free accuracy: E-invoices eliminate manual data entry for flawless invoice data.
• Cost savings: Reduce expenses on printing, postage, and document storage.
• Eco-friendly: Go green and eliminate paper waste!

When Does Your Business Need to Implement E-Invoicing?

E-invoicing is being phased in to ensure a smooth transition for businesses. The specific timeline for your business depends on your annual turnover or revenue.

• Businesses with audited financial statements: Your implementation date will be based on the turnover or revenue reported in your 2022 audited financial statements.
• Businesses without audited financial statements: Your implementation date will be based on the revenue declared in your 2022 tax return.
• Businesses that changed their accounting year end in 2022: Your turnover or revenue will be adjusted to a 12-month period for determining your implementation date.

The Importance of E-Invoice Compliance

Adhering to LHDN's e-invoice requirements is crucial. Failure to comply can result in severe penalties, including:

• Financial penalties ranging from RM200 to a substantial RM20,000
• Possible imprisonment for up to six months

These penalties underscore the importance of timely e-invoice implementation and adherence to LHDN regulations.