The Malaysian government is rolling out mandatory e-invoicing and tax reporting for all Malaysian businesses. The purpose is to improve cashflow and efficiency for businesses and to ensure efficient tax compliance.
Discover below how e-invoicing in Malaysia affects your company and how you can easily send your first e-invoice to Malaysia.
In order to improve business efficiency and productivity the Malaysia Digital Economy Corporation (MDEC) has launched the national e-invoicing initiative. This program aims to digitalize Malaysian businesses and at the same time collaborates with the Inland Revenue Board of Malaysia (IRBM) to implement nation-wide tax reporting and compliance.
As of 1 August 2024 all Malaysian businesses and taxpayers with a revenue of RM100 million and above will be required to use e-invoicing.
On 1 January 2025, this also became mandatory for companies with a turnover between RM 100 and RM 25 million, and since 1 July 2025 for entrepreneurs with a turnover between RM 25 and RM 5 million.
The implementation will be further expanded to all businesses and taxpayers in Malaysia. The next phases are:
1 January 2026 for companies with a turnover between RM 1 and RM 5 million
1 July 2026 for companies with a turnover up to RM 1 million
Consult the latest e-invoicing timeline from the Malaysian government here.
Entrepreneurs with a turnover below RM 50,000 may apply for an exemption. More information can be found in this e-invoicing FAQ from LHDN.
The Malaysian government has recognized Peppol Service Providers as as one of the options to submit e-invoices. The Peppol International Invoice (PINT) specification has been adapted to comply with the tax requirements for Malaysian business.
Read more about the Malaysian PINT (MY PINT BIS) via OpenPeppol.
If you want to send e-invoices to Malaysia you need to send them first to the Malaysian tax authorities (LHDN) before you can send them via Peppol. With Billit, you can connect to both LHDN and the official Billit Peppol Access Point.
Follow the steps below to create an account and send your first invoice.
If you also want to receive e-invoices via Peppol, follow these steps:
Before you send your invoice via Peppol to your customer, you first need to send it to the Malaysian tax authority (LHDN). To connect your Billit account with LHDN, you should follow these steps.
When purchasing a yearly license, you get 1 month for free.
Send free e-invoices through Peppol.
Prices per company number/VAT number and file.
The 37 MYR per month license can be taken out on an annual and quarterly basis.
*: documents, purchase and sales invoices - including receipts and credit notes. Usage outside of license is invoiced at the end of the selected license period.
**: links/integrations with external services/software may incur a cost for the use of that external service/software.
Peppol is a secure and closed network with many advantages:
The identity of everyone affiliated with the network is verified, so you can be sure that the invoices you receive are genuine, and you avoid invoice fraud.
The invoices you send through the network are completely digital, so you can process them automatically in your invoicing software.
E-invoices in the UBL standard are automatically read correctly. This prevents human error during processing.
Linking to your bank account means that outgoing and incoming invoices are automatically matched and you get a better overview of your company's financial situation.
Peppol is fast: your recipient will receive your invoice within 10 minutes of sending it. Combined with automatic processing, this will save a lot of time.
Peppol is an open network for securely sending and receiving business documents such as invoices. It is designed to simplify the purchase-to-pay process between governments and suppliers. Peppol was developed by the European commission but is on its way to become a global standard.
There are many kinds of identifiers for sending invoices via Peppol. Find out the difference between each option below.
| Type | Description | Example | More info |
|---|---|---|---|
| SST (Sales & service Tax Registration Number) | All businesses required to pay sales and services taxed issued an SST registration number. This number must be included on invoices where SST goods or services apply. | W10-2406-32000027 | Verify an SST number |
| SSM (Suruhanjaya Syarikat Malaysia) or BRN (Business Registration Number) | This is the official Tax Identifier for Malaysian companies. It must be added to e-invoices. | 201801007737 | Search for an SSM number |
| EIF (Electronic Invoice Format) | This number is used as an identifier on the Peppol network. It is usually based on the SSM number. | 01201901123456 | Info about the EIF number composition |
