Malaysia is introducing mandatory e-Invoicing to modernize the tax system and improve transparency. Starting 1 July 2025, all businesses, big or small, must issue digital invoices that are validated by the Inland Revenue Board of Malaysia (LHDN) before sharing them with customers.
Key Deadlines
- 1 August 2024 – For businesses with annual revenue over RM100 million
- 1 July 2025 – Mandatory for all businesses, regardless of size
What You Need to Do
- Understand the Process:
You must send your invoices to LHDN for approval. Only validated invoices with a QR code can be issued to your customers. - Update Your System:
Ensure your accounting software is compatible with LHDN’s MyInvois platform. - Review Customer Data:
Make sure details like company name and tax ID are correct. - Train Your Team:
Staff involved in sales, finance, or invoicing should know how to handle the new system.
Why It Matters
E-Invoicing isn’t just about following government rules—it offers real benefits for your business. By switching to a digital invoicing system, you reduce manual errors, improve processing speed, and create clear audit trails that make tax filing easier. It also helps build trust with customers and the tax authority, as all invoices are validated by LHDN. Most importantly, complying with e-Invoicing requirements helps you avoid penalties, delays in payment, or issues during tax audits.
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