Transition to e-invoicing
The Inland Revenue Board (IRB) has mandated the adoption of e-invoicing for all Malaysian businesses.
Transitioning to e-invoicing before the 2025 deadline will mean you meet compliance, avoid penalties, and enhance operational efficiency for your business.
The mandate will be implemented in phases beginning in August 2024 and covers all commercial activities, including domestic and international transactions, and encompasses B2B, B2C, and B2G interactions.
With extensive e-invoicing expertise, BoardRoom will guide your company through this transition, offering tailored e-invoicing solutions to meet compliance requirements and enhance financial processes.
As an e-invoicing solution provider, we offer a comprehensive e-invoicing service that covers every stage of the process, from initial implementation to ongoing support, ensuring compliance and efficiency in your financial operations.
The business benefits of e-invoicing implementation
Increased efficiency
Automating invoice processing reduces manual errors and streamlines transactions.
Cost savings
E-invoicing reduces paper usage and storage costs, leading to significant savings in the long run.
Improved cash flow management
Integration with your accounting system allows for accurate cash flow predictions and managing working capital.
Enhanced security
E-invoicing portals offer greater security and traceability compared to traditional paper invoicing.
Compliance
Ensure adherence to the latest tax regulations and avoid potential fines.
Sustainability
Reducing paper usage contributes to greener, more sustainable business practices.
E-invoicing compliance and requirements for businesses
Malaysian businesses must meet specific e-invoicing compliance requirements before the deadline. To comply with e-invoicing, Malaysian companies must adopt specific e-invoicing formats (XML and JSON) and integrate these into their existing financial systems. The adoption of e-invoicing involves significant changes to backend systems, including system upgrades, process adjustments, and staff training.
The Inland Revenue Board (IRB) specifies that the Malaysian e-invoice format includes 55 fields with transaction details such as seller and buyer information, item descriptions, services provided, quantities, prices, taxes, total amounts, and payment details. Upon successful validation, e-invoices will be assigned a Unique Identification Number (UIN) and a QR code through the e-invoicing portal, MyInvois, allowing for online verification of the invoice.
Businesses need to ensure their accounting systems are compatible with the new formats and that their invoicing processes align with the IRB’s requirements. Partnering with an experienced e– invoicing service provider like BoardRoom can simplify this process. Our tailored e– invoicing solutions are designed to meet Malaysian compliance standards while supporting operational efficiency, cost savings, and better financial visibility.
Understanding the compliance requirements and planning ahead will ensure a smooth transition to e-invoicing. With the right e-invoicing services, your company can avoid penalties, ensure smooth integration, and gain long-term benefits such as improved accuracy, enhanced security, and streamlined tax reporting.
What does BoardRoom offer as your e-invoicing service provider?
BoardRoom provides tailored e-invoicing solutions designed to help businesses transition smoothly to e-invoicing compliance. Starting with a thorough Business Impact Analysis (BIA) and customised gap closure strategy, we offer tailored services to implement e-invoicing for your business through ongoing compliance management. We can handle all aspects of e-invoice management, including accounts receivable and payable, as well as tax advisory and consultancy. BoardRoom’s approach ensures your business is well-prepared for e-invoicing, helping you maximise the benefits and maintain compliance with Malaysian regulations.
Ensure a smooth transition to e-invoicing with BoardRoom’s comprehensive pre-implementation strategy. Our expertise in accounting and tax services guarantees that your e-invoicing setup aligns perfectly with regulatory standards in Malaysia.
We can help with:
- Assessing current invoicing processes and identifying gaps
- Conducting a thorough Business Impact Analysis (BIA) for system compatibility
- Ensuring compliance with Malaysia’s e-invoicing standards
- Evaluating legal documents, HR policies and invoice formats
- Recommending suitable accounting software or middleware
- Developing a gap closure strategy with actionable e-invoicing implementation steps
- Providing staff training for Malaysia’s e-invoicing requirements
- Aligning e-invoicing setup with regulatory standards
Simplify your e-invoicing setup with our expert implementation and technical integration services. As a trusted e- invoicing service provider, BoardRoom delivers customised e- invoicing solutions designed to meet the needs of businesses of all sizes.
We can help with:
- Providing comprehensive project management support
- Drafting and updating Standard Operating Procedures (SOPs) based on BIA findings
- Implementing accounting systems and handling software integration
- Overseeing User Acceptance Testing (UAT) in a Sandbox environment to identify and mitigate issues
- Conducting extensive training on new SOPs and enhanced accounting software
- Engaging with IRBM to resolve any implementation issues to ensure a smooth transition to e-invoicing
Maintain the efficiency and effectiveness of your e-invoicing system with BoardRoom’s ongoing compliance, support, and tailored e-invoicing services. Our role as a reliable e- invoicing service provider does not end after setup; we ensure your business continues to benefit from a fully optimised e- invoicing solution.
We can help with:
- Providing go-live support to ensure a seamless transition to e-invoicing
- Reviewing e-invoice data regularly to ensure accuracy and compliance
- Troubleshooting any issues and assisting with invoice resubmission
- Refining SOPs based on feedback and operational experiences
- Conducting regular system updates and compliance checks
- Preparing e-invoicing implementation reports to keep you informed
Prepare your team for the transition to e-invoicing with our comprehensive awareness workshops. As a trusted e- invoicing service provider, BoardRoom ensures that your employees not only understand the technical aspects of compliance but also how to apply the right e- invoicing solutions in daily operations.
We can help with:
- Providing an overview of the e-invoice initiative and its tax implications
- Conducting training sessions on the impact of e-invoicing on business functions and processes
- Developing awareness, compliance, and implementation strategies tailored to your business needs
Benefit from our wide range of e-invoicing services designed to support your business at every stage of compliance. Whether you require system integration, tax support, or outsourcing, our role as a reliable e-invoicing service provider ensures that your company has access to scalable and efficient e-invoicing solutions.
We can help with:
- Accounting outsourcing for e-invoicing, including support for accounts receivable and accounts payable
- Specialised tax guidance and advice, including e-invoicing compliance and tax strategies
- On-demand e-invoicing consultancy and support
Why choose BoardRoom as your e-invoicing service provider?
With over 50 years of experience in helping businesses achieve their goals across Asia, BoardRoom is one of the leading corporate service providers in the region, specialising in business solutions such as accounting, payroll, and tax filing.
BoardRoom offers a suite of comprehensive e-invoicing services that covers every stage of the process, from initial assessment and implementation to ongoing support, ensuring compliance and efficiency in your financial operations.
By choosing BoardRoom, you gain more than just an e-invoicing solution. You invest in a strategic partnership that drives efficiency, reduces costs, and mitigates risks. Our commitment to your business success is unparalleled.
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Local and International Expertise
Leveraging our knowledge of the business landscape across Asia and the regulatory environment in Malaysia, we deliver tailored services such as Business Impact Analysis (BIA) and gap closure strategies to ensure seamless e-invoicing service implementation.
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Receive End-to-End Support
From project management and system integration to ongoing compliance management and staff training, we have a dedicated and experienced team to offer comprehensive support for your e-invoicing process.
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Optimise Resource Allocation
By outsourcing your e-invoicing implementationto BoardRoom, you can free up valuable internal resources, allowing your staff to focus on core business activities and drive revenue growth.
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YOUR POINT OF CONTACT
Eunice Hooi
Managing Director Asia, Tax & Accounting
Common questions about e-invoicing Malaysia
1. What is e-invoicing?
E-invoicing is the electronic generation, exchange and storage of invoices in a standardised digital format. Unlike traditional paper invoices, an e-invoicing solution integrates directly with accounting systems, ensuring that invoices are validated and stored securely. This process simplifies invoicing, enhances accuracy, and provides businesses with a faster and more reliable way to manage transactions.
2. Why is e-invoicing important?
E-invoicing is more than just a regulatory requirement; it is a way to modernise business operations. By adopting an e-invoicing solution, companies can reduce costs, increase efficiency, improve cash flow management, and strengthen compliance with tax regulations. E-invoicing services also enhance transparency and traceability, giving businesses peace of mind while reducing risks of errors, fraud, and non-compliance.
3. What are the benefits of e-invoicing?
The benefits of implementing e-invoicing services are extensive, including:
- Increased efficiency: Automation reduces manual errors and speeds up invoice processing.
- Cost savings: Paper, printing, and storage costs are significantly reduced.
- Improved cash flow: Seamless integration with financial systems enables accurate forecasting.
- Enhanced security: Digital invoices are validated, tracked, and securely stored.
- Sustainability: Reduced paper usage supports greener business practices.
Working with an experienced e-invoicing service provider ensures that your business maximises these benefits while remaining compliant with Malaysian regulations.
4. How does e-invoicing work?
E-invoicing involves using an approved e-invoicing solution to generate, transmit, and validate invoices through the Inland Revenue Board of Malaysia’s (IRBM) MyInvois portal. Each invoice is assigned a Unique Identification Number (UIN) and QR code for verification.
Read our comprehensive guide to e-invoicing for more information.
5. Who is required to implement e-invoicing?
All Malaysian businesses with annual revenue above RM150,000 must implement e-invoicing by 2025 as per the government mandate. The rollout begins in phases from August 2024, eventually covering B2B, B2C, and B2G transactions.
If you need support on e-invoicing implementation by the deadline, BoardRoom offers relevant services to help.
6. Why should I implement e-invoicing early?
Implementing e-invoicing services early ensures a smoother transition and helps avoid last-minute system disruptions or compliance issues. Early adopters also start enjoying efficiency, security, and cost-saving benefits sooner.
An experienced e-invoicing service provider can conduct a Business Impact Analysis (BIA), identify gaps in your current systems, and implement the right e-invoicing solution well before the government deadline.
7. Are there grants to help with implementation?
Yes, the Malaysian government has introduced several incentives to support businesses adopting e-invoicing services:
- Digital Grant: Micro, small, and medium enterprises (MSMEs) can seek grants of up to RM5,000, with a total allocation of RM100 million, to enhance digital sales, inventory, and accounting systems.
- Tax Deduction: MSMEs are eligible for tax deductions of up to RM50,000 per Year of Assessment from YA2024 until YA2027, encompassing consultation costs incurred during e-invoicing implementation.
- Capital Allowance: The duration of the capital allowance claim has been shortened from four years to three years. Businesses can claim a capital allowance for investments in ICT equipment, computer software packages, and expenses related to customised software development. With a six-month transitional grace period starting 1 August 2024, companies that implement e-invoicing within the stipulated timeline will be granted a reduced capital allowance claim period, from three years down to two years, for information and communication technology (ICT) purchases
The exact details, such as eligibility criteria and the application process, may be subject to updates by the Inland Revenue Board of Malaysia (IRBM), so it’s important for businesses to stay informed and consult with a tax professional to fully leverage any available incentives.
Contact us to learn more about how you can take advantage of these opportunities.