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 is here to 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 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. Understanding these requirements and planning ahead will ensure a smooth transition to e-invoicing, helping your business comply with regulations and achieve improved operational efficiency.
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 the transition to 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.
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 services.
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.
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 needs.
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. This process simplifies invoicing and enhances accuracy.
2. Why is e-invoicing important?
E-invoicing improves efficiency, reduces costs, enhances security and ensures compliance with tax regulations. It is a crucial step towards modernising business operations.
3. What are the benefits of e-invoicing?
The benefits of e-invoicing include increased efficiency, cost savings, improved cash flow, enhanced security and regulatory compliance. Read more about e-invoicing for tax and accounting excellence in our latest guide.
4. How does e-invoicing work?
E-invoicing involves using software to create, send and store invoices electronically. This system automates many manual processes, reducing errors and speeding up transactions. 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. 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?
Early implementation ensures a smooth transition, avoids last-minute complications, and allows your business to start reaping the benefits of e-invoicing sooner.
7. Are there grants to help with implementation?
Yes, there are various grants and incentives available to support businesses in transitioning to e-invoicing. These include the following:
- 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, as well as expenses related to customised software development. With a six-month transitional grace period starting 1 August 2024, companies who 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) purchase.
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.