8~2()211

MALAYSIA
MADANI
• Digital representation of a transaction between a • Validation of e-lnvoice by IRBM is done in near real time
supplier and a buyer
• Safeguards against data tampering
• e-lnvoice replaces traditional paper or electronic
documents such as invoices, credit notes, and debit
notes
• e-l nvoice applies to all taxpayers undertaking commercial activities in Malaysia
• e-l nvoice flow for B2G will be similar to B2B
• e-invoice will be issued for B2C upon the request of taxpayers
• For B2C and certain B2B transactions (where e-lnvoices are not required by the Buyers):
o Issuance of receipt by Suppliers is based on Suppliers' current business as usual practice
o After a certain period, Suppliers would be required to aggregate the receipts issued to Buyers and issue a consolidated e-l nvoice for
IRBM's validation
 E-INVOIS SECARA MANDATORI

Kepada pembayar cukai

dengan pendapatan atau
jualan tahunan melebihi j
RM100 juta mulai 1 Ogos
2024
Revised e-lnvoice implementation timeline as announced in Budget 2024 {feN
A

Pilot Phase Phase 1 Phase 2 Phase 3

May 2024 1 ~ugust 2024 ~ ~anuary 2025 1 ~uly 2025

• Development of e-lnvoice • Mandatory implementation • Mandatory implementation • Mandatory implementation

system and for taxpayers with an for taxpayers with an for all other taxpayers
infrastructure annual turnover or annual turnover or
• Launch pilot programme revenue of >RM100m revenue between RM25m
to test and validate to RM100m
feasibility, functionality ,
and readiness of
Mylnvois system on a
smaller scale prior to
nationwide rollout

Continuous awareness activities and outreach programs through engagement & communication
 Change of
accounting year
end for financial
year 2022
 CONTINUOUS TRANSACTION CONTROL (CTC) MODEL
A model that enables a high level of control through validation of invoice data received by IRBM
as well as allowing flexibility to taxpayers to decide on their preferred ways to transmit e-lnvoice
data to IRBM for near real-time validation
55 data fields for e-lnvoice
4
/ LHDN
. , A

PARTIES ADDRESS PRODUCTS/ SERVICES PAYMENT INFO

II Supplier's Name
Ill Supplier's Address
II Classification
II
50.
Payment Mode

Supplier's Bank Account Number

29. Description of Product or Service

30. Unit Price 51. Payment Terms

31. Tax Type 52. Prepayment Amount

Supplier's Tax Identification Number
3. (TIN)
32. T ax Rate 53. Prepayment Date

33. T ax Amount 54. Prepayment Reference Number

Supplier's Registration / Identification
4.
Number / Passport Number 34. Details of Tax Exemption

5. Supplier's SST Registration Number 35. Amount Exempted from Tax

·-
Supplier's Tourism Tax Registration 36. Subtotal
6. Number 19. &•Invoice Type
37. Total Excluding Tax
I 7. Supplier's e-mail I II e~lnvoice Gode / Number
38. Total lnduding Tax

■. 8.
Supplier's Malaysia Standard Industrial
Classification (MSIC) Code 1•
. El
Original e -tnvoice Reference Number
39. Total Net Amount

-
&-Invoice Date and Time
40. Total Payable Amount
Supplier's Business Activity Description
El Issuer's Digital Signature

BUYER DETAILS m Invoice Currency Code

41.

42.
Rounding Amount

Total T axable Amount Per Tax Type

•
11.

12.
uyers TIN

Buyer's Registration / Identification

Number / Passport Number

Buyer's SST Registration Number

El Currency Exchange Rate

Frequency of Billing
43. Quantity
44.

45.
Measurement

Discount Rate

46. Discount Amount

47. Fee / Charge Rate

1. Shipping Recipient's Name Reference Number of Customs Form No. 1, 9, etc.

2. Shipping Recipient's Address 6. lnooterms

3. Shipping Recipient's T IN 7. Product Tariff Code

Shipping Recipient's Registration/ Identification Number/ Passport Number 8. Free Trade Agreement (FTA) Information

9. Authorisation Number for Certified Exporter

Reference Number of Customs Form No.2

Country of Origin

Details of other charges

XML/ JSON, either one-by-one or in
package
Metadata
Grid
Healthcare Construction Telecommunication

Petroleum
e-commerce
Operations
 ................................................. ............................................... ...........................•...
.• s - Issuance (Invoice/Debit/Credit/Refund) /
...
.. Option A:
0 ;..- 0 Cancellation via IRBM Mylnvois Portal
l.. O Validation Notification
Mylnvois .
Portal Return validated e-lnvoice 8 lG Request for Rejection
s- Issuance (Invoice/Debit/Credit/Refund) /
0 == Cancellation via AP I (D irect/Technology Provider/
.: Notification

Option B:
- O Service Provider) i O Cancellation Notification
API
Return API response 8
0
e-lnvoice
Sharing
8 Reporting & Dashboards Q storing
s-
0 Request for Rejection
..
l. O Validation Notification
8 Reporting & Dashboards •
\0 Request for Rejection
•
: Notification

., .•.......•......••..............••.....•........••.....•........•.....•••......••......••.....•••.....••.......••..... ..\0 Cancellation Notification

 0 Issuance 2. IRBM Direct/ Technology Provider

Return API response e

Service Provider

0 Issuance 2. Peppel Access Points G) Issuance

Return API response 0 3. Non-Peppel Access Points
ReturnAPI
response
e
0 e-lnvoice sharing l® e-lnvoice sharing

Service Provider

e-lnvoice sharing 0 2. Peppel Access Points

 Once a sale or transaction is concluded,
supplier creates an invoice
• Supplier submits e-lnvoice it to IRBM
via the Mylnvois Portal for validation
This can be done via:
a) Individual Creation
b) Batch Creation

• Once a sale is concluded, supplier/

technology provider creates an IRBM
e-lnvoice in accordance witln the defined Cloud
structure (i.e., XML or JSONI)
• Supplier submits e-lnvoice to IRBM via
API for validation

Legend: - - Invoice Flow •• •• ••► Notrtication Flow Supplier Buyer O IRBM

 • Supplier receives a validated
e-lnvoice as well as a vi sual
representation of the
validated e-lnvoice in PDF
format from IRBM upon
validation

a) Validated e-lnvoice: I RBM

Unique Identifier Number,
date and time of validation
and validation link are
assigned

• Supplier or technology provider will receive an API b) If e-lnvoice returns

IRBM
response with the following information: unvalidated: Error
Cloud
message will be displayed.
a) IRBM Unique Identifier Number from IRBM;
Supplier is required to
b} date and ti me of validation; and correct the error and
c) Information to form validation link* resubmit it for validation
"Refer to Get Recent Documents I Get Document I Get
Document Details in the SOK for further guidance

Legend: - - Invoice Flow •• •• ••► Notrtication Flow Supplier Buyer O IRBM

 • Once th e e-lnvoice is successfully validated, notification
will be sent to the Supplier and Buyer

Both Supplier and Buyer receive an email notification

from IRBM upon validation

Note: Notifications are sent for invoice clearance and buyer

• Supplier shares the validated e-lnvoice with Buyer
• The visual representation of the e-lnvoice generated
from the Mylnvois Portal will include a QR code
• The QR code is used to validate the existence and
status of the e-lnvoice via Mylnvois Portal

• Supplier shares the validated e-lnvoice with Buyer

• In the event the Supplier shares the visual
representation of the e-lnvoice to the Buyer, the
Supplier is required to ensure that the QR code is
embedded accordingly
• The QR code is used to validate the existence and
status of the e-lnvoice via Mylnvois Portal
• All validated e-lnvoices submitted via the Mylnvois
Portal will be stored in IRBM's database
• Taxpayers are reminded to retain sufficient
records and documentation in relation to the
transaction

• All validated e-lnvoices submitted via API will be

stored in IRBM's database
• Taxpayers are reminded to retain sufficient
records and documentation in relation to the
transaction
Step 9 (Mylnvois Portal)/ Step 8 (API) - Reporting and Dashboard {f!N A

Services for Taxpayers

API

• Through API integration, both Supplier and Buyer may request and retrieve
e-lnvoice, which can be seamlessly displayed on their respective systems
• API integration enables access to essential e-lnvoice details (i.e., invoice date,
amount, etc.) and other relevant information submitted to IRBM, in the format of:
o XML / JSON, either one-by-one or in package Both Supplier and Buyer may
o Metadata request and retrieve e-lnvoice
via Mylnvois Portal if needed
• Mylnvois Portal provides essential
invoice details (i.e., invoice date,
amount, etc.) and other relevant
information submitted to IRBM, in
the format of:
o XML / JSON, either one-by-
one or in package
o Metadata
o Grid
o PDF file
___
-wtO!',C:Ol,C:,U,,l
lll.llOOllntJtl.l:_Ol' ...IAY,..,

,
-~--------~
UJTorT....a-------~
·- ~ - - - - - - ~ •

·---------~
•K>IE#lt((:l;Nn _ _ _ _ _ _ _
~
Transactions which involve
29 September 2023 payments (whether in monetary
(updated 6 April 2024) form or otherwise) to agents,
dealers or distributors
 0 Buyer provides f) Supplier issues and Q Supplier shares O Buyer may scan QR 0 Buyer will be able to
Buyer's details to validates e-l nvoice validated code in the visual substantiate the
Supplier for e-l nvoice with IRBM e-lnvoice to Buyer representation of the transaction for tax
issuance validated e-lnvoice purposes
to view e-lnvoice
validity
INVOICE INVOICE
l,ffl l!cil
TAX
Yes ·--
·--·
---· -
Buyer requires
e-l nvoice?
RECEIPT RECEIPT
REr..RECEIPT
•"T INVOICE
Supplier No
==
==
..J

~---'=--
:::j ~ -:

= $ -1===- ,.,..
= $
0 Supplier issues receipts to f ) supplier consolidates all Q Supplier issues and
Buyer (same as current receipts (monthly basis) validates consolidated
business practice) e-l nvoice with IRBM
 0 Buyer provides f) Supplier issues and Q Supplier shares O Buyer may scan QR 0 Buyer will be able to
Buyer's details to validates e-lnvoice validated code in the visual substantiate the
Supplier for e-lnvoice with IRBM e-lnvoice to Buyer representation of the transaction for tax
issuance validated e-lnvoice purposes
to view e-lnvoice
validity
INVOICE
lffl
TAX
Yes

Buyer requires
e-l nvoice?

Snppll•

Buyer's / Shipping Buyer's/ Shipping "000000000000" for

Recipient's TIN Recipient's Buyer's / Shipping
identification number Recipient's identification
number
Buyer's / Shipping Buyer's / Shipping "EI0000000001 O" for
Recipient's Recipient's TIN Buyer's / Shipping
identification number Recipient's TIN
 Buyer requires
e-l nvoice?
RECEIPT RECEIPT
INVOICE
Supplier No
-- ..J REf ~•P"t
::::l
=1:
RECEIPT
-- lffl-=
$
$
0 Supplier issues receipts f ) supplier consolidates all E) Supplier issues and
to Buyer (same as current receipts (monthly basis) validates consolidated
business practice) e-l nvoice with IRBM
 Buyer requires
e-l nvoice?
RECEIPT RECEIPT
INVOICE
Supplier No
-- ....J

--
:::l
REf i'•P~
RECEIPT
-- lffl-=
$
$
0 Supplier issues receipts f ) supplier consolidates all E) Supplier issues and
to Buyer (same as current receipts (monthly basis) validates consolidated
business practice) e-l nvoice with IRBM
 it
II Transactions with Buyers - Types of activities or transactions where
e-lnvoice is required for all transactions (i.e., no consolidation allowed) A

Industry/ Activity Types of activities or transactio ns

1 Automotive Sale of any motor vehicle

2 Aviation Sale of fligh1 ticket , private charter

Details to be provided in d ue course [currently being put on hold unt il such time
when the details are made available]
3 Luxury good s and jewellery
"Taxpayers are allowed to issued consolidated e -lnvoice (in the event the
buyers do not request for e -lnvoice) until further notice
Construction contractor undertaking construction contract , as defined in the
4 Construction
Income Tax (Construction Contracts) Regulations 2007
Wholesalers and retailers of c onstruction
5 Sale of construction materials, regardless of volume sold
materials
Pay-out to winners for all betting and gaming activities, except (i) casino and
6 Licensed betting and gaming
(ii) gaming machines [until further notice)

7 Payment to agents / dealers I distributors Payments made to agents, dealers or distributors

 Scenario 1: Supplier 1 issues e-lnvoice to Buyer Disbursement
Supplier 1 issues an e-lnvoice to Buyer for the goods sold or services • Supplier 1 will issue an e-lnvoice
0 rendered directly to the Buyer, subsequently
Supplier 2 will issue an e-lnvoice to
the Buyer for the goods supplied or
Payment made on
I"'\
~-' behalf of Buyer services rendered by Supplier 2 to
Buyer

~
Supplier 1 -
Supplier 2
(Third Party/ Intermediary)
Buyer
• Supplier 2 should neither include the
payment made on behalf of Buyer in
Supplier 2's e -l nvoice nor issue an
additional e-lnvoice to recover the

Scenario 2: Supplier 1 issues e-lnvoice to Supplier 2 Supplier 1

Supplier 1 issues an e-lnvoice to Supplier 2
0 for the goods sold or services rendered
Reimbursement
• Supplier 1 will issue an e-lnvoice to
I
~, Payment for goods or
services
Supplier 2, subsequently Supplier 2
will issue an e -l nvoice to the Buyer to
record the amount incurred on behalf

~
-
of Buyer alongside the goods sold or
service rendered by Supplier 2
Supplier 1 Supplier 2 Buyer
(Third Party/ Intermediary)
32
Legend: Supplier 1 Supplier 2
Examples of employment perquisites & benefits: Examples of expenses incurred by employee on behalf of
• Employees' pecuniary liabilities (e.g., utility bills, parking fees, the employer:
and car maintenance charges) • Accommodation
• Club membership • Toll
• Gym membership • Parking
• Professional subscriptions • Telecommunication expenses
• Allowances (e.g., travelling, petrol, toll rate, parki ng rate , • Expenses incurred in a foreign country
meals, etc.)
 Payment to agents, dealers, distributors, etc. Agents, dealers, distributors, etc. Taxpayer that makes the payment

2 Goods sold or services rendered by foreign suppliers Foreign seller Malaysian purchaser

3 Profit distribution (e.g., dividend payments) Recipient of the distribution Taxpayer that makes the payment
Merchant, service providers
4 e-commerce e-commerce / Intermediary platform
(e.g., driver, rider)

5 Pay-out to all betting and gaming winners Recipient of the pay-out Licensed betting and gaming provider

Acquis~ion of goods or services from individual

taxpayers who are not conducting a business lndividua I taxpayer providing goods or
6 Person acquiring goods or services
(applicable only If the other self-billed circumstances are not services
applicable)

Interest payment, except:

i. Business (e.g. , financial institutions, etc) that
charge interest to public at large (regardless
7 businesses or individuals) Recipient of interest payment Taxpayer that makes the interest payment
ii. Interest payment made by employee to employer;
and
iii. Interest payment made by foreign payer to
Malaysian taxpayers
Supplier's TIN Supplier's "000000000000" for
Registration / Supplier's identification
Identification number
Number / Passport
Number
Supplier's Supplier's TIN "EI0000000001 O" for
Registration / Supplier's TIN
Identification
Number / Passport
Number
l!I Transactions which involve payments (whether in monetary form or it A

Ill otherwise) to agents, dealers or distributors

request)/ normal receipt from
Current transaction flow between Seller, agent/ dealer/ distributor and Purchaser Seller to Purchaser
• Purchaser acquires goods or
services from the Seller
• Seller required to issue an
Commission paid to e-lnvoice to the Purchaser to
0 agents, dealers or
distributors 0 Sale of goods or
services rendered
record the transaction
• If Purchaser does not request for
an e-lnvoice to be issued, Seller
will issue a normal receipt to the
Seller (Supplier) Agent /dealer/ Purchaser Purchaser
distributor (Buyer)
Issuance of self-billed e-lnvoice
from Seller to agent / dealer /
distributor
• Seller assumes the role of
Supplier to issue self-billed
e-lnvoice for proof of expense
and at the same time proof of
IRBM provides a concession to individual Suppliers in providing TIN and identification number income for agent I dealer /
details (refer Section 3.5.4 and Section 8.8 of e-lnvoice Specific Guideline) distributor

36
Legend: Supplier Agent / Dealer I Distributor
 Current transaction flow between Foreign Seller and Malaysian Purchaser • Importation of goods - Latest by end of
the month following the month of customs
0 Sale of goods or services rendered clearance being obtained
• Importation of services - Latest by end of
the month following the month upon (1)
Foreign Seller issues invoice to Malaysian payment made by the Malaysian Purchaser;
~ =----------c;:; Purchaser for goods sold or services rendered or (2) receipt of invoice from Foreign Seller,
whichever earlier

--=
Foreign Seller
(Supplier)
Malaysian Purchaser
(Buyer)
(Note: This is in accordance with the
prevailing rules applicable for imported
taxable service)
• Malaysian Purchaser may extract the details of
the Foreign Seller from the invoice / receipt / bill
issued by the Foreign Seller or request for the
relevant details from the Foreign Seller

FOREIGN INCOME
• All foreign income received in Malaysia from outside of Malaysia requires an e- lnvoice for tax purposes
• Recipient of foreign income would assume the role of Supplier and issue an e-1nvoice to person who makes payment to recipient
• The Income Recipient is required to issue the e-lnvoice latest by the end of the month following the month of receipt of the said foreign income

3/
Legend: Supplier
 DOMESTIC DISTRIBUTION Roles of taxpayers who are required to issue
self-billed e-lnvoice:
The taxpayer that makes the distribution is required to
assume the role of Supplier and issue a self-billed • Supplier: Recipient of the distribution
e-lnvoice to the recipient of the distribution • Buyer: Taxpayer that makes the distribution

However, certain taxpayers are exempted from issuing self-billed e-lnvoice on profit distribution:

1. Taxpayers that are not entitled to deduct tax under Section 108 of the Income Tax Act 1967

2. Taxpayers who are listed on Bursa Malaysia

 Service Provider delivers
goods to Purchaser

Supplier 2-
Servlce Provider (e.g.,
Logistic Service)

G) E•commerce
platform notified
Service Provider on
the job

E<ommerce platform
notified Merchant on
the order

D
Purchaser
G)Goodssold
E-commerce
0 place order via
Supplier 1 - &commerce Purchaser
Merchant platform platform
Cybersecurity Standards
• Mylnvois system is in compliance and certified with
- ISO/IEC 27001 Information Security Management System (ISMS)
- ISO 22301 Business Continuity Management System BCMS Audit Certification
released on
---~ - - --- -
o.ttingttort.cl...

••
SOftwore Otv.iopment KJt (Sote)
for Inland Revenue Boord Of

,.....
_________ ..... _.,._
Moloyskl (IRBM) Mylnvols

________
- -·-----------
____ ...______ __
Sy;-tem
----·
------ ., _
,.
·- ,.

-------
 T his means the invoice has passed initial structure validations but is still pending additional
Submitted 1
validations to be completed
Valid T he status of a successful invoice validation
Invalid T he status of a submitted invoice with validation issues
Cancelled T he status of an invoice cancelled by the Supplier

PROD myinvois.hasil.gov.my api .myinvois.hasil. gov. my

preprod-
SANDBOX preprod.myinvois.hasil.gov.my preprod-api.myinvois.hasil.gov.my
api.myinvois.hasil.gov.my
 PROD PROD E t . t.

SANDBOX Sa dbo En ostma e · o ment ·son

[I] Where can taxpayers obtain guidance on Digital Signature?

The comprehensive guidance on Digital Signature creation and validation can be found on the Signature page.

48
 API ACTUAL/STUB I API ACTUAL/STUB
1 L . T S t Actual 9 Cancel Document Stub

2 Lo ·n as lnte ed·a S stem Stub 10 Re·ect Doc ment Stub

3 GtAIID tT Stub 11 Get Recent Documents Stub

4 G tD tT Stub 12 Get-Submission
- ---- Stub

5 GtD tT V . Stub 13 Get Document Stub

6 Get-Notifications
- ---- Stub 14 Get Document Details Stub

7 V Id t T ' TIN Actual 15 Search Documents Stub

Actual (limited to
8 Submit Documents Structure Validator
only)
so
Signature

= -=----
=-

---
•••
---
• ••
 Review current Ident ify possible Initiate
process and perform business scenarios communication
Preparation
data-mapping of the and develop test p lan and data collection
55 data fields / test script requirements

Review and update

Validate and compare
Document the test invoicing
Testing Taxpayer 's ERP data
results p rocesses and
to IRBM system's data
internal workflows

Continuously
Continuously review Review and update
validate and compare
and update invoicing invoicing
Go-Live Taxpayer's ERP data
processes and p rocesses and
to IRBM system's
internal workflows internal workflows
data
Digitalisation grant of up to Reduction in the capital allowance claim Tax deduction of up to
RMS,000 for MSME (total period from 4 years to 3 years, where the RMS0,000 tor each YA be
a/location of RM100 million) tor capital allowance rate will be revised to 40% given on ESG-related
the upgrade of: initial allowance and 20% annual allowance expenditure, including
for: consultation fee tor the
• sales system implementation of
• inventory system • Purchase of JCT equipment and computer e-lnvoice incurred by MSMEs
• digital accounting system software packages
• Consultation, licensing and incidental tees Effective from YA2024 to
related to customised computer software YA2027
development

Effective from YA2024

·----
~ 0 . t; - n t ( • )
...~ - . . . -. . . ()I