Malaysia is taking significant strides to modernize its financial and administrative systems. One such initiative is the implementation of e-Invoicing. A step that promises to streamline processes, enhance efficiency, and bolster economic growth.
What is e-Invoice?
e-Invoice is a digital representation of a transaction between a supplier and a buyer. It allows for near-real-time validation and storage of transactions through the MyInvois Portal on the LHDN website. It caters to Business-to-Business (B2B), Business-to-Consumer (B2C), and Business-to-Government (B2G) transactions.
Benefits of e-Invoice
Implementing e-Invoicing provides a seamless experience for taxpayers, improves business efficiency, and increases tax compliance. The benefits include:
Source: https://www.hasil.gov.my/en/e-invoice/benefits-of-e-invoice/
Types of bills involved in e-Invoice
Malaysia e-Invoice involves invoices, credit notes, debit notes, and refund notes.
Invoice: A commercial document that itemises and records a transaction between a Supplier and Buyer, including issuance of self-billed e-Invoice to document an expense.
Credit Note: A credit note is issued by Suppliers to correct errors, apply discounts, or account for returns in a previously issued e-Invoice with the purpose of reducing the value of the original e-Invoice. This is used in situations where the reduction of the original e-Invoice does not involve return of monies to the Buyer.
Debit Note: A debit note is issued to indicate additional charges on a previously issued e-Invoice
Refund Note: A refund note e-Invoice is a document issued by a Supplier to confirm the refund of the Buyer’s payment. This is used in situations where there is a return of monies to the Buyer.
Malaysia e-Invoice timeline implementation
Taxpayers with an annual turnover or revenue of more than RM100 million will begin implementation on 1st August 2024 as the first batch. Those taxpayers with an annual turnover or revenue of more than RM25 million and up to RM100 million will start on 1st January 2025, while the rest of the businesses will implement it on 1st July 2025.
Choosing the right business software with Rockbell
Selecting the right business software is crucial for maximizing the benefits of e-Invoicing. At Million, we offer tailored solutions that meet your unique business needs, ensuring you stay ahead in the digital economy. Our software not only supports e-Invoicing but also provides comprehensive tools for managing your financial and administrative operations efficiently.
Million, a leading provider of business software solutions, is set to launch its e-Invoicing feature soon. Million will release an updated version of its software to support e-Invoicing within its system. The new version is expected to be available in June 2024. It will allow users to export information and import reports manually into the MyInvois Portal, along with seamless API integration for enhanced connectivity.
Conclusion
The implementation of e-Invoicing in Malaysia marks a significant milestone in the country’s digital transformation journey. This approach can enhance businesses operational efficiency, ensure compliance, and contribute to a more transparent and sustainable economy. As we move towards a digital future, choosing the right software partner, like Million, can make all the difference in successfully navigating this transition.
For more information on e-Invoicing and how our solutions can benefit your business, please don’t hesitate to contact us.
