As Malaysia moves toward digitalisation, the Inland Revenue Board of Malaysia (LHDN) is introducing a nationwide e-Invoice system starting in 2024 and continuing into 2025. This guide explains what e-Invoicing is, why it matters, and how your business can comply—especially if you’re a small or medium enterprise (SME).
What Is an E-Invoice?
An e-Invoice is a digital version of a traditional invoice. It is created, sent, and stored electronically in a structured format. Unlike scanned PDFs or image-based invoices, e-Invoices are machine-readable and designed for automated processing.
Why Is Malaysia Introducing E-Invoicing?
- To reduce tax fraud and under-reporting
- To streamline compliance for businesses and tax authorities
- To modernise the country’s tax infrastructure
Who Needs to Comply?
All businesses in Malaysia will eventually be required to adopt e-Invoicing. LHDN has introduced a phased rollout based on annual turnover, beginning with large companies and gradually including smaller ones.
Key Features of Malaysia’s E-Invoice System
- Real-time invoice validation via LHDN’s MyInvois portal
- Invoice data submitted directly to LHDN for approval
- QR code on approved e-Invoices for authenticity
Benefits for Malaysian Businesses
- Faster and more accurate invoice processing
- Improved compliance and reduced risk of audit
- Better cash flow management
How Kinrasoft Helps with E-Invoicing
Kinrasoft’s cloud accounting software is fully prepared for Malaysia’s e-Invoice implementation. It allows SMEs to:
- Generate and send e-Invoices that comply with LHDN requirements
- Automate submission to LHDN’s MyInvois platform
- Track approval status and QR codes seamlessly
With Kinrasoft, your business can stay compliant without the stress and complexity of managing new government systems manually.
Conclusion
The e-Invoice system is more than a tax requirement—it’s an opportunity to modernise your accounting process and improve operational efficiency. With the right tools, compliance can be easy and even beneficial.