Malaysia is rolling out a mandatory e-Invoicing system as part of the government’s digital tax transformation initiative led by the Inland Revenue Board (LHDN). If you’re a Malaysian business owner, it’s crucial to understand who needs to comply and when your business is required to start.
This post explains the key deadlines and compliance criteria, and how small and medium-sized enterprises (SMEs) can prepare effectively—especially with cloud solutions like Kinrasoft.
Who Is Required to Comply with Malaysia’s E-Invoice?
All businesses operating in Malaysia will eventually be required to adopt the e-Invoice system, regardless of industry or size. However, the implementation is being phased in based on annual revenue thresholds.
LHDN E-Invoicing Compliance Timeline:
- August 1, 2024: Businesses with annual turnover ≥ RM100 million
- January 1, 2025: Businesses with turnover ≥ RM25 million and < RM100 million
- July 1, 2025: All remaining businesses and taxpayers (including individuals and micro SMEs)
These dates are set by the LHDN and are applicable to all registered taxpayers, including those offering goods, services, and digital products in Malaysia.
How Do You Know If Your Business Must Comply?
Your obligation to comply depends on your company’s reported annual revenue based on the most recent tax filing. LHDN may send formal notices, but it’s your responsibility to ensure your compliance status is accurate and up to date.
What Happens If You Don’t Comply?
- Potential tax audits or penalties by LHDN
- Issues with customer transactions or payments
- Loss of credibility in digital B2B and B2G environments
How Kinrasoft Helps Malaysian SMEs Prepare for E-Invoicing
With Malaysia’s e-Invoicing compliance deadlines approaching, businesses need reliable and efficient tools. Kinrasoft Cloud Accounting Software is designed to help SMEs transition smoothly:
- Automatically generate e-Invoices that meet LHDN standards
- Submit invoices to the MyInvois platform directly from your dashboard
- Track invoice approval and access QR codes instantly
Kinrasoft supports your compliance needs while saving time and reducing manual errors—ideal for SMEs without dedicated finance teams.
Conclusion: Be Ready Before the Deadline
Malaysia’s e-Invoice compliance timeline is fast approaching. Understanding who needs to comply and when allows your business to stay ahead and avoid disruptions. By adopting Kinrasoft, you ensure full compliance while upgrading your overall financial operations.