To support growth of the digital economy, the government intends to implement e-Invoicing in stages in effort to enhance the efficiency of the country’s tax administration management. The implementation of e-Invoicing will improve the quality of services and reduce compliance costs to taxpayers, while increasing the efficiency of business operations, as was announced by the Ministry of Finance.
While not mandatory in Malaysia, e-invoicing has been possible since 2015. To receive electronic invoices, written consent or authorization is necessary, supported by the Tax Identification Number (TIN) introduced in 2022. In March 2023, Malaysia decided to implement mandatory e-invoicing to enhance service quality, reduce compliance costs, and boost business efficiency. The phased plan, starting with a 2024 pilot program for selected companies, covers B2G, B2B, and B2C transactions, both domestic and cross-border, based on the CTC connected to the Peppol network.
The 2024 Finance Bill includes provisions modifying the timeline for introducing the e-invoicing mandate in Malaysia. It assumes the postponement of the initial stage of the e-invoicing obligation by two months. After the changes, the schedule for introducing the e-invoicing is as follows:
Issuers of invoices will be required to deliver them to government entities for verification and approval before sending them to recipients. Each invoice at this stage will be provided with a certificate with its serial number, which will be proof for both the issuer and the recipient that it has been issued correctly. An additional invoice verification method will require a QR code. Invoices will be exchanged mainly through the PEPPOL channel. The myTax portal will also be made available, which will enable manual issuing and receiving of e-invoices
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