E-Invoicing Q&A Snippet

• An e-Invoice is a digital document replacing traditional invoices, credit/debit notes, and refund notes.
• Structured in XML/JSON formats specified by IRBM (LHDN) for machine readability.
• Contains standardized fields: supplier/buyer details, amounts, taxes, product/service descriptions.
• Serves as proof of income/expense.
• Validated in near real-time by IRBM (LHDN)'s Mylnvois System.

• Business-to-Business (B2B)
• Business-to-Consumer (B2C)
• Business-to-Government (B2G)
• Includes: Standard invoices, Credit notes, Debit notes, Refund notes.
• Self-billed e-Invoices required for foreign suppliers not using Mylnvois.

• Businesses below thresholds can opt-in early by notifying IRBM (LHDN).
• Must comply with all technical/data requirements.
• Gains flexibility in transitioning systems ahead of deadlines.

• Businesses starting 2023-2024: >RM500k begin July 2025; others start Jan 2026.
• For 2025+ startups: Deadline is Jan 2026 or commencement date, whichever is later.

1. Train staff on e-Invoice processes.
2. Evaluate IT systems for compatibility (ERP integration).
3. Review current invoicing practices and data accuracy.
4. Ensure access to TINs and mandatory fields (e.g., MSIC codes).

• Entities listed in Appendix 3 (e.g., UN agencies, World Bank) are exempt before July 2025.
• Their suppliers must still issue e-Invoices unless the buyer is explicitly exempt.

• Requires fields like exemption certificates or gazette references.
• Amounts exempted (e.g., SST) must be specified in the e-Invoice.

• The four General TIN types are: EI000000000010: Used for local individuals providing an NRIC (e.g., Ali purchasing a phone with his NRIC) or consolidated invoices. EI000000000020: For foreign buyers/shipping recipients lacking a TIN (e.g., Emily using her passport for a purchase). EI000000000030: For foreign suppliers in self-billed or import transactions (e.g., Lorex Switzerland importing watches). EI000000000040: For government entities or exempt institutions (e.g., a government hospital receiving medical equipment).

• This TIN is used to consolidate multiple transactions at month-end. For example, a seller combines all September purchases into one e-invoice, using EI000000000010 as the general TIN for validation. It also applies to self-billed invoices when validating suppliers' TINs collectively.

• EI000000000020 is used when exporting goods to foreign recipients without a TIN. The recipient's details (name, address, passport) are included in the annexure, while EI000000000020 serves as the placeholder TIN for validation.

• TINs include prefixes based on entity categories: C: Companies (e.g., C20880050010). D: Partnerships (e.g., D4800990020). IG: Individuals (e.g., IG115002000). LE: Labuan entities, PT: Limited Liability Partnerships, F: Associations, etc. These prefixes ensure proper identification of entities in transactions.

• The codes are: 01: Standard Invoice. 02: Credit Note (adjusts downward). 03: Debit Note (adds charges). 04: Refund Note (monetary returns). These codes categorize transaction types for clarity in financial records.

• Self-billed codes start with "1": 11: Self-billed Invoice. 12: Self-billed Credit Note. 13: Self-billed Debit Note. 14: Self-billed Refund Note. These codes indicate that the buyer generated the invoice on behalf of the supplier.

• The category TP (Deceased Person's Estate) is used. For example, a TIN like TP[digits] would represent an estate in transactions.

• Labuan entities use the prefix LE in their TINs. For instance, LE[digits] identifies transactions involving Labuan-registered businesses or trusts.

• EI000000000030 is used when a foreign supplier (e.g., Ahmad from Indonesia) provides only a passport number. This TIN validates the supplier's identity in self-billed transactions.

• The Inland Revenue Board (LHDN) automatically issues TINs to individuals aged 18 and above. These TINs start with IG (e.g., IG115002000) and are 9-11 digits long. They are mandatory for e-invoicing transactions involving local individuals.

1. Invoice: Standard transaction document.
2. Credit Note: Adjusts downward (e.g., returns) without refunds.
3. Debit Note: Adds charges (e.g., extra services).
4. Refund Note: Confirms monetary returns to buyers.

• Within 72 hours: Buyers can request rejection; Suppliers can cancel.
• After 72 hours: Adjustments require new credit/debit/refund notes.
• Notifications sent via portal/API.

• Post-validation: Buyers have 72 hours to reject; Suppliers can cancel.
• Post-deadline: Adjustments need new documents (credit/debit notes).

• e-Invoice becomes immutable after 72 hours.
• Buyers cannot reject.
• Suppliers must issue adjustment documents (credit/debit notes) for corrections.
• Original invoice remains valid.

• Require new e-Invoices (e.g., credit notes for overcharges).
• Original invoices remain valid.
• Amendments tracked via reference numbers.

• Issue a credit note (to reduce amounts) or debit note (to increase charges).
• Reference the original invoice's UIN.
• Undergo separate validation.

• Suppliers issue a refund note e-Invoice.
• References original invoice UIN.
• Includes refund amount, reason, buyer's bank details (if applicable).

• Links adjustment documents (credit/debit/refund notes) to original invoices.
• Ensures traceability and compliance during audits.

• e-Invoices must be in XML or JSON.
• Adhering to Universal Business Language (UBL) 2.1 standards.
• Ensures interoperability with IRBM (LHDN)'s systems and third-party software.

• Always Mandatory:
• Supplier/Buyer Name
• Supplier/Buyer TIN
• Supplier/Buyer Reg/ID Number
• Supplier MSIC Code & Activity
• Supplier/Buyer Address
• Supplier/Buyer Contact Number
• e-Invoice Version, Type, Code/Number
• e-Invoice Date/Time
• Issuer Digital Signature
• Invoice Currency Code
• Product/Service Classification & Description
• Unit Price
• Subtotal (line item)
• Total Excluding Tax
• Total Including Tax
• Total Payable Amount
• Conditionally Mandatory:
• Tax Type, Rate, Amount
• Tax Exemption Details & Amount
• Currency Exchange Rate (if non-MYR)
• Original e-Invoice Reference (for adjustments)
• SST Reg Number (if applicable)

• Optional field indicating recurring billing cycles (e.g., monthly subscriptions).
• Aids automating periodic invoices but doesn't affect validation unless required.

• Optional 'Rounding Amount' field captures minor adjustments (e.g., RM0.50).
• Ensures final figure matches payment receipts without affecting tax calculations.

• Optional field for internal billing codes (e.g., project IDs).
• Aids reconciliation and tracking; does not affect validation.

• Optional fields ('Discount Rate', 'Fee Amount') capture adjustments.
• Must be itemized for transparency.
• Net amounts excluding taxes clearly stated.

MyInvois is Malaysia’s official e-Invoicing platform developed by LHDN to facilitate the generation, validation, and management of e-Invoices.

All businesses in Malaysia will gradually be required to use MyInvois based on a phased implementation plan starting in 2024.

As of the date this answer was written, January 1, 2026, please check with the LHDN and/or the relevant government agency to see if this information has been changed or updated.

• To enhance tax compliance
• Improve efficiency
• Reduce fraud
• Streamline the invoicing process

Businesses can register through the LHDN portal and follow the onboarding process.

1. Register with LHDN
2. Integrate systems
3. Test e-Invoicing submission
4. Start issuing compliant e-Invoices

Certain businesses or transactions may be exempt, subject to LHDN approval.

All industries, including manufacturing, retail, services, and e-commerce, must comply.

• JSON
• XML

Each e-Invoice is validated through a unique invoice reference number and timestamp.

Yes, businesses can integrate their ERP or accounting systems using APIs provided by MyInvois.

• Digital signatures
• Encryption
• Real-time validation

Validation is done in real-time or within a short processing period.

Corrections can only be made through a credit note or debit note.

Refunds are managed via credit notes, which must also be submitted through MyInvois.

Businesses may face fines, audits, and potential restrictions from LHDN.

No, paper invoices will no longer be recognized for tax purposes.

Yes, MyInvois is designed to be accessible for businesses of all sizes.

It provides real-time invoice tracking and ensures accurate tax reporting.

1. Suppliers create/submit e-Invoices.
2. Portal validates in real-time.
3. Validated invoices get UIN & QR code.
4. Buyers can request rejection within 72 hours.
5. Suppliers can cancel within 72 hours.
6. Validated invoices stored in IRBM (LHDN) database.
7. Both parties access dashboards for reporting.

• Portal: Suits small-scale users without APIs.
• API: Benefits large enterprises with high transaction volumes, offers automation.

• Retrieve e-Invoices (XML, JSON, PDF, metadata).
• Dashboards display status, amounts, dates, tax details.
• Aids reconciliation and audits.

• Assist in generating/transmitting e-Invoices via API.
• Handle integration, digital signatures, compliance checks.
• Suppliers remain responsible for data accuracy and timeliness.

• Upload spreadsheets (Excel) with predefined columns.
• Portal validates each entry.
• Returns error reports for corrections.
• Processed in near real-time.

• Provides technical guidelines, API endpoints, sample code.
• Helps developers implement workflows, signatures, error handling.
• Ensures compliance with IRBM (LHDN) standards.

• Digital certificates (.cer/.pfx) authenticate issuer identity.
• Certificate's hashed signature embedded in API request.
• Ensures non-repudiation and data integrity.

• Structural integrity (XML/JSON).
• Mandatory fields check.
• Digital signature verification.
• Taxpayer validity check.
• Referenced document validation.
• Duplicate detection.
• Immediate validation during submission, background checks follow.

• Structural checks (XML/JSON).
• Mandatory fields present.
• Valid taxpayer TINs.
• Non-duplication.
• Correct tax codes.
• Referenced document validity (e.g., original invoice for credit notes).

• Encryption
• Authentication
• Access controls
• Firewalls
• Audit logs
• Breach monitoring
• Compliance with privacy laws
• Regular system reviews.

• Identical invoices (supplier/buyer, amounts, dates) submitted closely.
• System flags potential duplicates.
• Taxpayers must resolve by canceling or proving legitimacy.

• Checks if referenced invoice exists, is valid, matches amounts.
• Invalid references (e.g., canceled invoice) trigger rejection.
• Requires resubmission with correct details.

• Ensure codes (currency, tax types) align with IRBM (LHDN)'s lists.
• E.g., 'USD' matches ISO standards, tax rates match legislation.
• Ensures data consistency.

• Cross-checks TINs, registration numbers, SST status against IRBM (LHDN) databases.
• Invalid/inactive records result in rejection.
• Requires updates via MyTax Portal.

• Imports/exports require annexure fields: customs form numbers, Incoterms, tariff codes, country of origin.
• Self-billed e-Invoices mandatory for foreign suppliers not using Mylnvois.

• Annexure fields: customs form numbers (e.g., Form No.1), Incoterms, tariff codes, country of origin.
• Self-billed e-Invoices if foreign supplier lacks Mylnvois access.
• Exporters include FTA details/Certified Exporter numbers if applicable.

• Must include their tourism tax registration number.
• Mandatory for such entities, optional for others.

• Specify currency code (e.g., USD).
• Include exchange rate to MYR at transaction date.
• Converted MYR amount displayed alongside foreign currency value.

• Follow B2B workflows.
• May require additional government-specific fields (e.g., ministry codes).
• Must align with public sector procurement guidelines.

• Omit SST registration number field.
• Must still include other tax details (e.g., exemptions) if applicable.

• If shipped to third party, annexure fields capture recipient's name, address, TIN.
• Buyer's details remain in main invoice.
• Ensures clarity in supply chain.

• Prepayments documented via optional fields (amount, date, reference).
• Final e-Invoice deducts prepaid amounts.
• Partial payments require clear terms/references.

• May lead to penalties under tax laws (e.g., missing deadlines).
• Exemptions exist for technical outages if compliance efforts proven.

• Likely align with existing tax laws for late/missing submissions.
• IRBM (LHDN) may impose fines or audits.
• Exemptions apply for technical issues or valid delays.

• Taxpayers must retain evidence of compliance efforts (timestamps, drafts).
• IRBM (LHDN) evaluates cases individually.
• Penalties waived if outages verified via system logs.

• Retain timestamps/draft invoices as proof of compliance efforts.
• IRBM (LHDN) reviews cases individually.
• Penalties waived if outages verified.

• Under Income Tax Act 1967 Section 138(4)(aa).
• Validated data shared with Royal Malaysian Customs Department.
• Used for tax enforcement (e.g., SST compliance).

• Suppliers: Create, submit, share e-Invoices.
• Buyers: Verify accuracy, may request rejections.
• Both: Access validated invoices via portal, retain records for 7 years.

• Validated e-Invoices stored indefinitely in IRBM (LHDN)'s database.
• Taxpayers must retain copies for seven years (per recordkeeping laws).

• Mylnvois Portal
• API guides & SDKs
• Training materials
• Helpdesk assistance
• Voluntary early adoption support.

• MSIC codes are mandatory.
• Errors may cause validation failures or misreporting.
• Update codes via MyTax Portal and resubmit.

• Embedded in visual representation (PDF).
• Allows buyers to verify validity/status via Mylnvois Portal.
• Contains link to IRBM (LHDN)'s database for real-time checks.

• Validation link to IRBM (LHDN) database.
• Unique Identifier Number.
• Invoice date and status.
• Redirects to Mylnvois Portal for verification.

• Assigned during validation.
• Ensures traceability and prevents tampering.
• Appears on validated e-Invoices.
• Used for referencing in audits or adjustments.

• https://www.hasil.gov.my/en/e-invoice/

• https://www.hasil.gov.my/en/e-invoice/reference-for-the-implementation-of-e-invoice/guidelines/

• https://www.hasil.gov.my/en/e-invoice/reference-for-the-implementation-of-e-invoice/frequently-asked-questions/industry-specific-frequently-asked-questions/

• https://sdk.myinvois.hasil.gov.my/

• https://www.hasil.gov.my/en/e-invoice/reference-for-the-implementation-of-e-invoice/frequently-asked-questions/