The Inland Revenue Board of Malaysia (LHDN), has just announced that an electronic invoicing (e-invoicing) system will be implemented within the first half of 2024 as part of the government’s digitalisation agenda.
LHDN’s Chief Executive Officer Datuk Dr Mohd Nizom Sairi had said that it would help to streamline and enhance the country’s tax system, promote transparency and give a more accurate compliance risk assessment. He explained the implications of its implementation in his speech at the National Tax Conference, Bernama reports.
Additionally, this system is to address the revenue leakage issue. These leakages usually result from issues such as the shadow economy, which are economic activities that are hidden or unseen by official authorities.
Overview of e-Invoice
Following is an overview of the e-Invoice workflow. It provides a step-by-step walk through from the pointof sale up to the point of storing cleared e-Invoices on LHDN’s database.
Source: LHDN
In order to accommodate tax certainty, Dr Sairi also said that LHDN has put in place the Tax Corporate Governance Programme (TCG).
“This initiative serves as a platform for both tax administration and taxpayers to collaborate in an open and honest manner to enhance the organisation’s corporate tax compliance affairs,” he said.
Implementation timeline
According the LHDN, the implemention will start rolling out in 2nd half of 2024 in phases. The implementation date will start with businesses with revenue over RM100 million and downwards to all taxpayers by July 2025.
2 ways to transmit e-invoice to LHDN
LHDN provides two e-invoice transmission mechanism:
1. MyInvois Portal hosted by LHDN
2. Application Programming Interface (API)
The process to submit e-invoice using MyInvois Portal or API is shown below.
The process to submit e-invoice using MyInvois Portal is shown below.
In order to use the MyInvois Portal, users will need to login to MyTax Porta first. For more information on this system, business owners can refer to LHDN’s e-Invoicing guideline.
