E-Invoice Advisory Service in Malaysia

WHAT IS E-INVOICING?

e-Invoicing is a digital system for exchanging invoices, credit notes, and debit notes in Malaysia. Instead of using paper or simple electronic documents like PDFs, businesses use a system that generates invoices in formats like XML or JSON, as specified by the Inland Revenue Board (IRB). This allows for automated processing and real-time reporting of transactions to the IRB.

WHO SHOULD USE E-INVOICE?

e-Invoicing is for all taxpayers in Malaysia involved in commercial activities, including:

All individuals and legal entities engaged in these types of transactions must comply with e-Invoice requirements.

E-INVOICE OVERVIEW WORKFLOW: HOW DOES IT WORK?

In the era of e-Invoicing, there is a transformative shift in how invoices are created, shared, and stored. Below is a workflow diagram outlining the steps of the entire e-invoicing process:

The e-invoice overview workflow above represents a comprehensive process illustrating the steps involved in the creation, validation, sharing, and storage of electronic invoices. The process begins with the supplier issuing an invoice, which can be done through two different options. Option A allows the supplier to issue the invoice, debit note, credit note, or refund note directly through the IRBM MyInvois Portal. Option B offers the alternative of issuing these documents via an API through a direct or technology provider.

Once the invoice is issued, it is sent for validation, and the IRBM system responds by returning the validated e-invoice to the supplier. A validation notification is then sent to inform the relevant parties that the invoice has been validated. Following validation, the validated e-invoice is shared with the buyer, ensuring that the buyer receives the official invoice for their records and payment processing.

If the buyer identifies any issues with the invoice, they can submit a request for rejection, ensuring that any discrepancies are addressed promptly. Upon receiving a request for rejection, a notification is sent to the relevant parties, indicating that there is an issue with the invoice that needs to be resolved. In cases where the invoice needs to be canceled, a notification is sent to inform all parties of the cancellation.

All validated invoices, along with their statuses, are securely stored in the IRBM Database, ensuring that they are archived for future reference and compliance purposes. Both suppliers and buyers have access to reporting and dashboards, providing detailed insights into the status of invoices, including issuance, validation, sharing, rejection requests, and cancellations. These dashboards help in monitoring and managing the invoicing process efficiently.

YYC Advisors excels in providing e-invoice advisory services, guiding businesses through the intricacies of e-invoice Malaysia systems. Our expertise ensures that every step, from issuance to storage, is handled with precision, enhancing compliance and operational efficiency. The e-invoice workflow involves the issuance of invoices by the supplier, validation and sharing with the buyer, and managing any rejections or cancellations, all while ensuring that the information is securely stored and easily accessible for both parties. This process not only streamlines invoicing but also ensures compliance with regulatory requirements and enhances the overall efficiency of financial transactions.

If you would like to find out more about e-Invoicing in Malaysia, please click on this article to know more.

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