The Inland Revenue Board (IRB) of Malaysia is setting a benchmark by integrating 4,000 businesses into the E-Invoicing system by August 2024, focusing on those with an annual turnover of RM 100 million. This transition to E-Invoicing will become universal for all business entities by July 2025, signaling a major shift in Malaysia's digital taxation landscape.
The E-Invoicing initiative is a cornerstone of Malaysia's digital agenda, anticipated to invigorate the economy and streamline tax collection efficiency. The system is designed to enhance invoicing accuracy and transparency, curtailing tax evasion and fraud.
Why E-Invoicing?
E-Invoicing is pivotal in Malaysia’s digital journey, aimed at reinforcing the economy and optimizing tax collection processes. It is designed to enhance invoice accuracy, prevent tax fraud, and promote a transparent financial ecosystem.
E-Invoice Essentials
Malaysia's LHDN E-Invoice is an advanced system that necessitates machine-readable formats like XML and JSON to ensure precise and authentic transactions. Every E-Invoice must undergo IRB's validation, featuring a QR code to facilitate real-time verification.
Quick Validation with E-Invoice
The CTC (Continuous Transaction Control) Model by IRBM guarantees swift validation, offering businesses immediate insights into their invoice compliance.
E-Invoice Adoption Timeline
Businesses will transition to E-Invoicing according to the following schedule, which prioritizes entities by their annual turnover:
| Phase |
Implementation Date |
Annual Turnover Requirement |
| 1 |
August 1, 2024 |
Taxpayers with an annual turnover or revenue of more than RM100 million |
| 2 |
January 1, 2025 |
Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM100 million |
| 3 |
July 1, 2025 |
Taxpayers with an annual turnover or revenue of more than RM500,000 and up to RM25 million |
| 4 |
January 1, 2026 |
Taxpayers with an annual turnover or revenue of up to RM500,000 |
Mandatory E-Invoice Content:
Each E-Invoice issued must contain specific details to ensure compliance and traceability:
-
General Information:
- Invoice number
- E-Invoice type and purpose
- Date of issue
-
Supplier & Customer Details:
- Tax Identification Number (TIN)
- Names and addresses
- Contact information (phone, email)
- Business registration and tax details
-
Transaction Information:
- Description of goods/services
- Quantity, unit of measure, and price
- Discounts, taxes, and total amounts
- Standardized product/service classification codes
-
Validation Data:
- Unique Identifier Number from IRBM
- Date/time of validation
- Validation status
-
Digital Certificates/Signatures:
- Ensures the authenticity of the E-Invoice data
-
Additional Information (Optional):
- Payment details, bank account, terms, and references
To explore how TreezSoft Cloud Accounting can transform your financial operations into a compliant and streamlined process, connect with us for a free demonstration today at [email protected] or WhatsApp us now!
Transition to TreezSoft Cloud Accounting
Embrace the digital shift with TreezSoft Cloud Accounting, your seamless solution for LHDN E-Invoicing compatibility. As the era of digital taxation dawns, TreezSoft Cloud Accounting stands ready to guide businesses through the E-Invoicing transition, providing robust, user-friendly software solutions. Starting August 1, 2023, purchasers of TreezSoft solutions will gain complimentary access to the E-Invoice module until 2028, underscoring our commitment to affordable, efficient tax compliance.
Join the Future of Accounting Today
Don't let your business fall behind. Embrace the future of accounting with TreezSoft. Sign up today and be among the first to experience the efficiency and convenience of our e-invoice feature. With TreezSoft Cloud Accounting, you're not just keeping up with the times; you're setting the pace.
TreezSoft is a cloud accounting software for Small and Medium-sized Enterprises (SMEs). You can access your financial information anytime, anywhere and we use automated processes and integration to promote efficiency in your accounting process and financial health management. You can also create unlimited users for FREE for your account in TreezSoft.
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