e-Invoicing Training: The First Step Towards Digital Compliance

Understanding Malaysia’s e-Invoicing Mandate

Malaysia is on a journey to transform itself towards digital tax compliance through the phased implementation of compulsory e-invoicing. This initiative, which is led by the Inland Revenue Board of Malaysia (IRBM), is aimed at increasing transparency, tax administration, and digitalisation efforts to meet global trends.

Implementation Timeline

The e-invoicing mandate is rolled out in phases.

• August 1, 2024: Compulsory for companies whose annual turnover is more than RM100 million.
• January 1, 2025: Applicable to businesses with a turnover ranging from RM25 million to RM100 million.
• July 1, 2025: Covers all other taxpayers irrespective of the turnover.

This gradual process provides businesses with adequate time to adjust, and they experience a smooth transition into the new system.

The e-Invoicing Process in Malaysia

Under the new system, businesses are obliged to send invoices electronically to the IRBM to verify them before communicating with the recipients. The process involves:

1. Invoice Creation: Firms issue invoices in a systematic digital form.
2. Submission to IRBM: Invoices are sent to the IRBM via MyInvois Portal or through app integration using Application Programming Interface (API).
3. Validation: The invoice is approved by the IRBM, which tags a Unique Identifier Number (UIN) and incorporates a QR code to authenticate it.
4. Delivery to Recipient: The invoice is then sent to the buyer with compliance and traceability.

This system improves transaction integrity and allows the tax authorities to monitor transactions in real time.

Integration Options for Businesses

Businesses have two major choices on where to join the e-invoicing system, namely:

1. MyInvois Portal

A free web-based platform by the IRBM, catering to small and medium enterprises (SMEs) having smaller transaction volumes.

2. API Integration

The preferred solution for medium to large businesses with heavy transaction volumes is the use of API integration as a way of addressing e-Invoicing compliance. This approach allows a system-to-system communication directly between your accounting software and the MyInvois System, which is operated by the Inland Revenue Board of Malaysia (IRBM).

Some of the most popular accounting solutions, such as AutoCount and Million, are now 100% compatible with the API integration framework that is offered by the IRBM. These systems allow users to:

• Automatically generate and send invoices to the IRBM without any manual uploading.
• Get real-time validation or unique identifiers (UINs) directly in the software.
• Avoid having to log in to MyInvois Portal for every transaction, enhancing the efficiency of operations.

For instance, AutoCount has built-in support for the e-invoicing model in Malaysia, such as UIN and QR code generation. On the same note, Million Accounting Software makes compliance easier for SMEs and bigger businesses as it provides an easy e-invoice operation that is in line with the latest IRBM regulations.

Benefits of e-Invoicing

Adopting e-invoicing offers numerous advantages:

• Enhanced Efficiency: The automation of invoicing minimizes human errors and speeds up the time of transactions.
• Improved Cash Flow: Efficient invoice processing gives rise to faster payments that help manage the flow of cash better.
• Regulatory Compliance: Makes sure that all the tax regulations are observed at minimum risk of penalty.
• Data Accuracy: The digital records increase the accuracy as well as the reliability of the financial data.
• Environmental Sustainability: Conserves the environment by reducing the usage of paper.

All these rewards together have the effect of leading to a smoother and more transparent operating environment for the business.

Training: The Crucial First Step

Training is mandatory for a successful transition to e-invoicing. Key training components include:

• System Familiarization: The ability to comprehend the functionalities of the MyInvois Portal and the API integration.
• Regulatory Knowledge: Knowing about the regulations and obligations to e-invoicing in the latest updates.
• Data Management: Discovering best practices for data entry and management.
• Security Protocols: The enactment of provisions for protecting sensitive financial information.

Through training investment, staff will be equipped with the prerequisite skills to help operate in the new e-invoicing landscape efficiently.

Below is a visual highlight of an upcoming hands-on seminar featuring AutoCount integration. This session is an excellent opportunity for those who wish to understand the flow from start to finish:

This HRD Corp Claimable will be led by Colin Tan Wei Da and Tee Jun Long, who will offer real-world training on AutoCount software integration with IRBM’s e-Invoice portal.

📍 Venue: Taman Nusa Sentral, Johor
🗓 Date: 6th June 2025
⏰ Time: 1:00 PM – 5:00 PM
🎯 Agenda: Rules, Autocount hands On training, and expert Q&A

Whether your organization is preparing for mandatory compliance or seeking to improve invoice automation, this training will offer the clarity and practical know-how needed to get ahead.

Learn how to implement e-Invoice with hands-on guidance using AutoCount.

Government Support and Incentives

There are several incentives available from the Malaysian government for businesses to adopt e-invoicing:

• Digital Grants: SMEs can receive grants to improve their digital infrastructure.
• Tax Deductions: e-invoicing implementation cost of buying software, as well as training employees, may attract a tax deduction.
• Capital Allowances: Speeded-up capital allowances are available for investments in information and communication technology (ICT) equipment and software.

These incentives are meant to reduce the cost of transition into e-invoicing and increase its adoption.

Ensuring Compliance and Avoiding Penalties

Failure to observe the stipulations of e-invoicing regulations can attract heavy penalties such as fines and court actions. To ensure compliance:

• Stay Informed: Keep track of the updates from the IRBM and other relevant bodies.
• Conduct Internal Audits: Measure internal processes periodically to determine and fix compliance gaps.
• Engage Experts: Seek advice from tax experts or legal professionals to help with complicated regulatory demands.

Preemptive actions are essential in ensuring that compliance is kept up and punitive effects are averted.