Malaysia e-Invoicing
Mandatory Electronic Invoicing in Malaysia
Let us Guide you with E-Invoicing Compliance
Learn how to get your company ready to exchange documents in accordance with regulations in Malaysia
Two formats are available for transmitting e-Invoice data:
Direct integration via API
this option directly links up your Enterprise Resource Planning (ERP) to IRB's MyInvois System.
Why choose this option
- Additional modules offered by ERP to meet e-Invoicing requirements
- Company’s preference on in-house solution integrator
Integration through middleware
This option uses a middleware to connect to IRB's MyInvois System.
Why choose this option
- Comprehensive offering for end-to-end e-Invoicing compliance
- Viability to make multiple changes expected throughout the implementation phases - limited changes in ERP
- E-reporting capabilities
How to prepare for e-invoicing?
Businesses can start preparing for e-invoicing by carrying out the following activities:
- Assess your current invoicing process to identify the areas where they can improve efficiency and reduce costs.
- Choose an e-invoicing solution that meets your specific needs and budget.
- Integrate your e-invoicing system with your ERP system to automate e-invoice transmission.
- Educate your staff on the new e-invoicing process.
- Check with your tax internal team or tax consultant to procure the digital certificate , please refer to the MCMC website.
Some core questions that need answers:
- Backend ERP version
- Does your company already have integration suite?
- Does your company plan to sign up SAP Document & Reporting Compliance (DRC) Solution?
- Are the following Master data in place with proper manner and complete with relevant information required in ERP System:
- Business Partner (Customer and Supplier)
- G/L Account and Cost Element
- Cost Center
- Profit Center
- Have you already engaged your tax agent to conduct a tax assessment for e-Invoicing statutory compliance?
- Do you have any EDI processes connected to the creation of outgoing invoices?
- Entity business functionality (production site/sales unit/service/ with or without warehouse…)
- Please share the number of company codes, sales Organisations, customer facing invoice outputs, number of invoices (volume).
- Do you have Inter-/Intracompany operation? (please describe)
- Are you in Wave 1 (1st August go-live) or Wave 2 (1st January 2025) go-live listing?
- When do you plan to kick off the project?
e-Invoicing Implementation Timeline in Malaysia
According to the 2023 Budget, a phased introduction of e-Invoicing is confirmed by the Inland Revenue Board of Malaysia (IRBM). The shared implementation dates by IRBM are in the following:Taxpayers with annual income or sales exceeding RM100 million.
Note: Taxpayers can voluntarily participate in the implementation at an earlier date, regardless of annual turnover or revenue
Taxpayers with annual income or sales exceeding RM25 million and up to RM100 million.
Note: Taxpayers can voluntarily participate in the implementation at an earlier date, regardless of annual turnover or revenue
Mandatory implementation for all other taxpayers.
How can KVP-Solution help you?:
KVP partners with Rizing for SAP ERP via DRC on-premise, in the cloud or a direct integration via customisation.
SAP DRC, Cloud Edition
SAP Document and Reporting Compliance (DRC), Cloud Edition, is a solution available on the SAP Business Technology Platform. It is designed to streamline the exchange of electronic documents and reports between business systems, such as SAP ERP, and external entities.
This cloud-based solution ensures legal compliance by providing a unified experience for online document exchange across various business scenarios in multiple countries and regions. It offers seamless integration with numerous processes, simplifying the complexity of adhering to diverse local requirements.
Key features include:
- Exchanging electronic documents, such as customer invoices.
- Submitting statutory reports.
- Monitoring document exchanges with external parties within the Peppol network.
To use this service, you need an enterprise global account on the SAP Business Technology Platform. Specific integration steps are required depending on the business system and process involved.
UPDATE May 8, 2024 : SAP has released Note No.3459968 - Electronic Invoice Processing for Malaysia: Pre-Implementation Guidance
Want to upgrade your accounting? Consider SAP S4 for your business.
Further we offer an SME Cloud ERP / Accounting solution named Acumatica Cloud ERP, which is ready for e-invoicing.
Our fentu connect can be used to convert files from your Accounting or ERP solution and converts it into the required XML format. It is transmittable through the Peppol Network by Access Point Providers.
