Malaysia’s push for digitalisation takes a major step forward with the mandatory e-invoicing rollout effective 1 July 2025. This shift, led by the Inland Revenue Board (LHDN), affects all Malaysian businesses, especially SMEs and payment gateway Malaysia providers like Paydibs. Understanding how e-invoicing works, and its integration with payment systems, is now critical for tax compliance, automation, and real-time reporting.
What Is E-Invoicing and Why Is It Now Mandatory?
E-invoicing refers to the electronic generation, validation, exchange, and archiving of invoices in a structured digital format. Under the LHDN’s e-invoicing framework, invoices must be issued in real time and validated through the government’s MyInvois platform.
The objective: reduce fraud, automate tax reporting, close the VAT gap, and increase transparency.
Who Is Affected by the July 2025 E-Invoicing Mandate?
From 1 July 2025:
- All businesses in Malaysia (regardless of annual turnover) must adopt the e-invoicing model.
- Earlier phases (2023–2024) applied only to large companies (RM100m+ turnover), but now micro, small and medium enterprises (MSMEs) must comply.
- Both B2B and B2C transactions are included under this mandate.
How Does E-Invoicing Work in Malaysia?
Here’s a simplified flow:
- Seller creates a structured invoice (JSON/XML format).
- Invoice is sent to LHDN via the MyInvois system for validation.
- Once validated, LHDN returns a Unique Identifier Number (UIN) and QR code.
- The validated invoice is sent to the buyer and stored electronically.
What’s the Role of Payment Gateways Like Paydibs?
Payment processors and gateways will now play a critical part in facilitating e-invoicing by:
- Auto-generating invoice data when transactions occur via FPX, card, DuitNow, or wallet payments.
- Integrating MyInvois APIs into POS and online checkout systems.
- Storing validated invoices securely in cloud environments compliant with tax recordkeeping laws.
Paydibs and similar providers can offer e-invoicing-as-a-service to SMEs that lack the resources for custom integration.
Key Benefits of E-Invoicing for Businesses
- Faster processing and payments
- Improved cash flow visibility
- Real-time compliance and audit readiness
- Lower administrative cost (no manual tax filings)
- Reduced fraud via real-time invoice validation
Challenges SMEs May Face
Challenge | Suggested Action |
Lack of technical know-how | Use a gateway with integrated e-invoicing |
System migration complexity | Start with a plug-and-play API solution |
Training & awareness | Attend LHDN webinars, consult your tax agent |
Conclusion: Prepare Now or Risk Non-Compliance
With penalties and audit risks on the line, Malaysian businesses can no longer delay e-invoicing adoption. Partnering with a payment provider like Paydibs that supports MyInvois integration will make compliance easier, especially for SMEs. Start your migration roadmap today to ensure smooth operations post-July 2025.
常见问题
1. What is MyInvois?
MyInvois is LHDN’s government platform that validates and approves digital invoices before they’re shared with buyers.
2. Do sole proprietors need to follow the e-invoicing mandate?
Yes, even sole proprietors and freelancers are included under the July 2025 requirement.
3. What happens if I issue a manual invoice instead?
Manual invoices issued after July 1, 2025 will not be recognised for tax purposes and may result in penalties.
4. Can I use Excel to create e-invoices?
No. Only structured digital formats like JSON or XML, sent through the MyInvois system, are accepted.
5. Do I need to change my payment gateway?
Not necessarily but your payment gateway must support e-invoicing or integrate with MyInvois. Payment gateway like Paydibs already do.
6. How long must I store validated e-invoices?
Invoices must be stored electronically for at least 7 years, as required by Malaysian tax law.
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