E-invoicing in Malaysia

Business-to-government (B2G) e-invoicing is mandatory in Malaysia. Suppliers of government entities must submit invoices electronically via the Inland Revenue Board of Malaysia (IRBM)’s MyInvois Portal or API in real-time. E-invoices must follow the UBL 2.1 format (XML or JSON) and undergo digital validation via the IRBM system. The IRBM assigns a QR code and a Unique Identification Number (UIN) to the e-invoice.

Business-to-business (B2B) e-invoicing is also mandatory in Malaysia. As with B2G e-invoicing, issuers must generate and transmit e-invoices via the MyInvois Portal or integrate via API.

Business-to-customer (B2C) e-invoicing is not yet mandatory in Malaysia. However, it’s required when customers request it.

To send compliant e-invoices in Malaysia, taxpayers must follow this process:

• The issuer issues an invoice via the MyInvois Portal or integrates with MyInvois via API.
• The IRBM validates the e-invoice and assigns a UIN and a QR code.
• The issuer and recipient are both notified of IRBM validation.
  
• The issuer shares the validated invoice (PDF or human-readable) with the recipient.

The recipient may reject the e-invoice or the issuer may cancel it within 72 hours, provided justifications are met, such as data errors, duplicates, or late submissions.

Foreign diplomatic offices, individuals not conducting business, and certain statutory or international bodies are exempt from Malaysia’s e-invoicing mandate. Small businesses with an annual turnover under RM 500,000 are generally also exempt.

Malaysia requires real-time e-invoice reporting through the MyInvois system, where all invoices must be submitted to the IRBM for validation before being issued.

Failing to issue an e‑invoice when required could lead to a fine of up to RM 20,000 or even imprisonment for up to six months. Other consequences include higher risk of audits or exclusions from markets.