Malaysia E-Invoicing Implementation Starting August 1st

The Inland Revenue Board (IRB) has announced that the e-Invoicing initiative will roll out in phases beginning in August 2024. 

e-Invoicing will apply to all taxpayers engaged in commercial activities within Malaysia, covering both domestic and international transactions.

e-Invoice Implementation Timeline

• 1st August 2024: Applicable to taxpayers with annual turnover > RM 100 million

• 1st January 2025: Relevant for taxpayers with annual turnover between RM 25 million and RM 100 million

• 1st July 2025: Applicable to all other taxpayers.

Disclaimer Notice: Please note that any information regarding e-invoicing may be subject to change based on government updates. For the most current and accurate information, kindly refer to the official website of the Inland Revenue Board of Malaysia (LHDN).

What is an E-Invoice?

An e-invoice, or electronic invoice, is a digital version of a paper invoice used in business transactions. It contains the same information as a traditional invoice but is created, transmitted, and stored in a digital format. E-invoices streamline the invoicing process, reduce errors, and improve efficiency.

4 Types of E-Invoices

• Invoice: A document issued by a seller to a buyer, detailing the products or services provided and the amount due.

• Debit Note: A document issued by a seller to a buyer, indicating an increase in the amount owed due to errors in the original invoice or additional goods/services provided.

• Credit Note: A document issued by a seller to a buyer, indicating a reduction in the amount owed due to returns, errors in the original invoice, or discounts.

• Refund: A document issued to return funds to a buyer, usually due to a product return or overpayment.

Two Ways to Submit an E-Invoice

There are 2 ways to submit and e-invoice, upon successful transactions, businesses may choose to perform:

• Manual Submission via Myinvois Portal: Log in to the Myinvois portal, upload the e-invoice manually, and submit it.

• Automated Submission via API Integration: Integrate your invoicing system with the Myinvois API to automate the submission process, reducing manual effort and errors. EasyStore offers free API e-Invoice submission.

e-Invoicing Ready with EasyStore

• Collect and Remember Customer Tax Info: EasyStore supports e-invoices by collecting and remembering customer tax info (TIN or IC number). This feature ensures that your customers' tax details are always available, reducing repetitive data entry and enhancing the overall experience.

• Auto E-invoice Submission: Once transaction is successful, the order details will automatically submitted to LHDN through API integration and validated within 2 seconds. Upon approval, both customers and businesses receive instant notifications on the status.

• Customer e-invoice QR Code: Customers can access their e-invoice details through the  QR code available across online store, shopping app, and POS orders.

• Support 3rd party e-Invoice submission: For businesses that prefer to submit e-invoices through accounting software, EasyStore’s e-invoice tool can streamline the collection of customer tax info for later submission through the accounting software.

• e-Invoice Dashboard: Securely store the e-invoice for future reference and compliance purposes. EasyStore keeps your records organized and easily accessible, meeting all regulatory requirements.

How Businesses Can Leverage E-Invoices

Here’s how your business can benefit from e-invoice tools and position itself as customer-centric.

• More Customer Touchpoints: Offering to assist customers with e-invoices provides additional touchpoints, enhancing customer interactions. It shows that your business is proactive in meeting customer needs and can significantly improve customer satisfaction and loyalty.

• E-Invoice Tools For Customers: Having e-invoice tools readily available makes the process seamless for customers. When customers find it easy to receive and manage their e-invoices, they are more likely to perceive your brand as customer-first. This perception can differentiate your business from competitors and foster long-term customer relationships.

• Customer Data Collection: E-invoices provide an excellent opportunity to collect customer data. Use this data to personalize experiences and tailor your offerings to better meet your customers' needs.

Conclusion

EasyStore Unified Commerce Solution 

EasyStore is a unified commerce solution that unifies retail and ecommerce business. 

Over 50,000 brands have grown their businesses by embracing unified customer experiences (UCX) strategy through EasyStore across multiple sales channels - online store, retail outlets, marketplaces, and social media, ensuring consistency in product and service offerings for a seamless shopping journey.