e-Invoicing Guidelines for the year 2023 are now accessible starting 21 July 2023

The Inland Revenue Board of Malaysia (IRBM) aims to facilitate the country’s transition from traditional to electronic invoicing methods.

The initial phase of the Electronic Invoicing (e-invoicing) system is set for pilot implementation in the first half of 2023. Subsequently, the mandatory implementation is scheduled to commence in June 2024 for businesses with an annual sales turnover threshold of RM100 million.

Through a series of roadshows covering selected zones, namely Klang Valley, Northern Zone, Sarawak Zone and Sabah Zone, the Inland Revenue Board of Malaysia remains committed to continue strategising to ensure the successful implementation of the e-invoicing initiative according to the planned timeline.

The Inland Revenue Board of Malaysia issued a Media Statement and e-invoice guideline year 2023 on 21 July 2023.

Media Statement

In this Media Statement, the Inland Revenue Board of Malaysia (IRBM) is pleased to announce the release of the e-Invoicing General Guidelines for the Year 2023 on its official portal.

This is an important reference and guidance for taxpayers on the e-Invoicing implementation.

The guidelines cover vital areas such as:

– e-invoicing implementation concepts;

– e-invoicing implementation timeline;

– e-invoice issuance and submission process to IRBM;

– Readiness assessment guidance for taxpayers; and

– Specifications of required data fields.

Accompanying the guidelines are Frequently Asked Questions (FAQs) that address common taxpayer queries on e-Invoicing.

Taxpayers can now access and download the e-Invoicing guidelines and FAQs via https://www.hasil.gov.my/e-invois/ to learn more about e-Invoicing requirements and processes.

IRBM welcomes taxpayer feedback on the e-Invoicing implementation at [email protected] as we work together to facilitate a smooth transition. Additional e-Invoicing resources will be provided along the way.

For any inquiries, taxpayers may contact:

  1. Hasil Care Line at 03-8911 1000 / 603-8911 1100 (overseas),
  2. HASiL Live Chat or
  3. the Feedback Form on IRBM’s portal – Customer Feedback Form – CFF (hasil.gov.my)

e-Invoicing Guideline

Here is an overview of the key points covered in the IRBM e-Invoicing Guideline for the Year 2023:

Introduction

e-Invoice Concepts

Implementation Timeline

e-Invoice Models

e-Invoice Overview Workflow

Below demonstrates an overview of the e-Invoice workflow from the point a sale is made or transaction is undertaken, and an e-Invoice is issued by the supplier via MyInvois Portal or API, up to the point of storing cleared e-Invoices on IRBM’s database for taxpayers to view their respective historical e-Invoices

e-Invoice model via MyInvois Portal

Taxpayers must log in to MyTax Portal to utilise MyInvois Portal to perform their e-Invoice obligations per the rules and requirements outlined by IRBM.

Here is an overview of the e-Invoice model using the MyInvois Portal:

The MyInvois Portal provides an accessible and user-friendly avenue for especially small taxpayers to fulfil e-Invoicing obligations with minimal investment needed in additional technology or systems.

The step-by-step processes make it easy for taxpayers to create, share and retrieve e-Invoices through the portal.

e-Invoice model via API

The API model allows taxpayers to directly submit e-Invoices to IRBM’s MyInvois system using integration with IRBM’s APIs.

Taxpayers or their technology providers will need to configure the API integration, which involves:

The API configuration will be included in the Software Development Kit (SDK), which is expected to be issued in Q4 of 2023

The e-Invoice data can be transmitted in XML or JSON format based on the defined structure containing the required fields.

The critical steps in the API model are:

  1. e-Invoice creation and submission via API in the standard format
  2. Validation by IRBM via APIs – errors are returned if any
  3. Notifications are sent to the supplier and buyer upon e-Invoice clearance.
  4. Supplier shares cleared e-Invoice with the buyer.
  5. Buyer/supplier can reject/cancel e-Invoice within 72 hours of validation.
  6. Accepted e-Invoices stored in IRBM’s database
  7. e-Invoice data can be retrieved via APIs by supplier and buyer

The API integration requires some upfront investment in technology but offers seamless transmission of high e-Invoice volumes. IRBM will provide a software development kit (SDK) to facilitate integration.

The API model is ideal for large companies with huge transaction volumes.

Readiness Assessment

key impacts on Small & Medium Enterprises (SMEs)

Here are some of the key impacts and considerations for Small & Medium Enterprises (SMEs) with regard to e-Invoicing implementation:

In summary, the impact on SMEs is manageable given the longer transition timeframe and accessible options like the MyInvois portal. Some process changes may be required but the benefits outweigh the effort of migrating to e-Invoicing.

10 Essential Steps for Preparing for e-Invoicing Implementation

Here are some suggested actions for businesses to take now to prepare for the upcoming e-Invoicing implementation:

Being proactive and making early preparations will ensure a smooth transition for your business to the new e-Invoicing system.

Key Roles of Tax Agents in e-Invoicing Implementation

Here are some of the key roles tax agents can play with regard to e-Invoicing implementation:

With their expertise, tax agents can guide clients to successfully adopt e-Invoicing with minimal disruption to their business operations.

Conclusion Overall, the guidelines provide comprehensive details to facilitate taxpayer transition and preparedness for e-Invoicing implementation.

Let us work hand in hand for the successful implementation of e-Invoicing in Malaysia.

References:

1. Media Statement

184.1-IRB-MR-210723_e-Invoice-Guideline-Yr-23Download

2. e-invoice guideline year 2023 on 21 July 2023.

184.2-IRB_e-Invoice-Guideline-Yr-23-2Download

Other related articles that you may be interested in

e-Invoicing Guidelines for the year 2023 are now accessible starting 21 July 2023

Benefits of e-invoice

A comparison of the key aspects between the e-Invoice model via MyInvois and via API Portal

Transitioning to e-Invoices: Assessing the Options for Your Business [What Businesses Need to Know]

Pre-Submission: e-Invoice Submission Requirements via MyInvois Portal & API

MyInvois Made Easy: Step-by-Step e-Invoicing on the Portal

马来西亚内陆税收局 (IRBM) 2023 年电子发票指南快速略读

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