Malaysia Issues E-invoicing Guidelines

Malaysia Issues E-invoicing Guidelines

The Inland Revenue Board of Malaysia (’IRBM’ or ‘LHDNM’ locally) released guidelines on the implementation of the upcoming e-invoicing mandate. The guidelines are meant to provide Malaysian taxpayers with clear and accessible instructions on implementing e-invoicing and the related compliance requirements, ensuring a smooth and structured transition.

Timeline

The implementation will be conducted in phases, with the first phase starting on June 1, 2024, covering taxpayers with an annual turnover or revenue exceeding RM100 million (USD 22 million). It will be gradually extended to all taxpayers, with a full rollout targeted in 2027.

Below is the detailed implementation timeline:

Phase NumberTargeted taxpayersImplementation Date
1Annual turnover or revenue of more than RM100 million (USD 22 million)June 1, 2024
2Annual turnover or revenue of more than RM50 million (USD 11million) and up to RM100 million (USD 22 million)January 1, 2025
3Annual turnover or revenue of more than RM25 million ( USD 5.5 million) and up to RM50 million (USD 11 million)January 1, 2026
4All taxpayersJanuary 1, 2027

Impact

The invoicing requirements of Malaysian businesses will change significantly due to the planned introduction of e-invoicing in 2024.

Businesses should proactively prepare for the upcoming e-invoicing mandate and assess their current IT systems, ERP systems, and tax compliance processes to ensure they are aligned with the new requirements.

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