e-Invoicing in Malaysia

Introducing BDO e-Invoice Middleware. A reliable & proven system in use since 2020.

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Is your business ready for e-invoicing

Are you ready?

The e-Invoicing initiative, as announced by Inland Revenue Board of Malaysia ("IRBM"), is set to roll out in phases starting from August 2024. This e-Invoicing initiative applies to all taxpayers undertaking commercial activities in Malaysia, and extends to both domestic and international transactions.

What are e-Invoices?

An e-Invoice is a digital representation of a transaction between a supplier and a buyer, replacing paper or electronic documents like invoices, credit notes, and debit notes. It contains the same essential information as the traditional documents.

INVOICESCREDIT NOTESDEBIT NOTES
As with traditional documents, they include supplier and buyer information, item description, quantity, price without tax, tax, and total amount to record daily business transactions.

The implementation of e-Invoicing will happen in stages starting 1 August 2024. It is intended to support Malaysia’s digital economy growth and to enhance the efficiency of Malaysia’s tax administration. e-Invoices will replace the traditional paper-based invoices which will enhance the efficiency in recording financial transactions and facilitate real time data collection.



e-Invoicing Implementation Timeline

Mandatory for taxpayers with an annual revenue of more than RM100 million.
Mandatory for taxpayers with an annual revenue of more than RM25 million and up to RM100 million.
Mandatory for all other taxpayers.

Note: For new business or operations commencing from year 2023 onwards, the e-Invoice implementation date is 1 July 2025.

e-Invoice will be implemented in phases to ensure smooth transition... taking into account the turnover or revenue thresholds, to provide taxpayers with sufficient time to prepare and adapt to the e-Invoice implementation.
hasil.gov.my

What Businesses Need To Do To Comply

With a tight timeline for implementation, taxpayers would need to assess the following:

Businesses must issue an e-Invoice in respect of any goods sold or services performed to be transmitted electronically to and validated by the Inland Revenue Board of Malaysia (“IRBM”).

e-Invoices need to be issued by businesses via integration of accounting system to the MyInvois Portal or Application Programming Interface (“API”).

Suppliers are obliged to share the validated e-Invoice with the buyer.

Alternatively, integration may be done through a BDO e-Invoice Middleware to facilitate e-Invoicing compliance and enhance security.

e-Invoicing Mechanisms

IRBM has developed two (2) distinct e-Invoice transmission mechanisms:

(a) MyInvois Portal - A portal hosted by IRBM at no cost
(b) Application Programming Interface (“API”) - integration with IRBM’s MyInvois System directly or through BDO e-Invoice Middleware

For large taxpayers or businesses with substantial transaction volumes, the API option is an ideal solution. Below are the key considerations for integration through API or via BDO e-Invoice Middleware:


e-invoicing api integration


Direct Integration through API

  • API enables direct transmission of data between your ERP/business system and IRBM's MyInvois System for e-invoice validation
  • An in-house IT/technology team is required to enhance the ERP/business system to comply with IRBM's specifications
  • Future enhancements are necessary to keep up with evolving IRBM requirements
  • Maintenance costs may potentially be higher due to repeating system development costs

Integration through BDO e-Invoice Middleware

  • BDO e-Invoice Middleware is software that acts as a bridge between your ERP/business system and IRBM's MyInvois System
  • The complexity of enhancing your ERP/business system will be reduced to just exporting data to BDO e-Invoice Middleware, which will handle and process e-invoices on your behalf
  • BDO e-Invoice Middleware will take care of future enhancements to keep up with evolving IRBM requirements
  • Cost of compliance will decrease over time.

To learn more, check out our in-depth guide to e-Invoicing in Malaysia here.


e-invoicing middleware


A secured, cloud-based e-Invoicing solution.
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How BDO Can Help

GAP ANALYSIS

  • Review and evaluate current invoicing procedures, process workflow (including internal controls) and related system mechanisms to identify changes/improvements required.
  • Conduct reviews on revenue related transaction streams and Tax implication to recommend necessary changes whilst assessing potential limitations and identification of gaps noted from the analysis.
  • Review Standard Operating Procedure (SOP) for e-invoice issuance as well as provide Cybersecurity advisory / recommendation in relation to e-invoice architecture.

PROJECT MANAGEMENT

  • Manage the implementation of e-invoicing together with your accounting software service provider (e.g. Oracle, SAP, MS, etc.) to be compliant to the IRBM’s requirements.
  • Ensure that the implementation is in accordance to a defined scope and timeline.

SYSTEM READINESS ASSESSMENT

  • Review the readiness of the new system to comply with IRBM’s requirements as follows:
    • Gap assessment in respect of data field requirements per IRBM taxonomy
    • Validate e-invoice data to and from IRBM to ensure accuracy and correctness

BDO E-INVOICE MIDDLEWARE SOLUTION

  • BDO e-Invoice Middleware is software that acts as a bridge between your ERP/business system and IRBM's MyInvois System. The complexity of enhancing your ERP/business system will be reduced to just exporting data to BDO e-Invoice Middleware, which will handle and process e-invoices on your behalf. It will take care of future enhancements to keep up with evolving IRBM requirements, decreasing cost of compliance over time.
  • Reliable and proven system in use since 2020.

BDO e-Invoice Middleware 

A BDO Technology Solution

Key Features:

  • Direct ERP – Middleware integration and automation

  • Comprehensive solution for all scenarios of income and expenses

  • Dashboard access to handle 72 hours cancellation and request for rejection

  • Ability to send e-Invoices to customers automatically (using client’s domain) upon validation

  • Storage of processed transactions up to 7 years

  • Adapts to evolving IRBM standards and regulatory changes

  • Add-on: Account Payable invoice management

  • Add-on: Customisable reports

  • Secured platform

  • Dedicated helpdesk

  • Reliable & proven system in use since 2020

Key Features:

  • Uses client’s existing data format generated from ERP system for e-Invoice processing

  • Processing of Account Receivable and Self-Billed e-Invoices

  • Provides daily e-Invoice processing report

  • Lower cost of implementation

  • Fast-tracking e-Invoice adoption in compliance with IRBM’s timeline

  • Adapts to evolving IRBM standards and regulatory changes

  • Secured platform

  • Dedicated support

  • Reliable & proven system in use since 2020

BDO e-INVOICE MIDDLEWARE

  • Simplifying e-Invoice with cloud-based Middleware financial platform
  • Reduction in Cost of Compliance over a period of time
  • Enhancing Privacy for your organisation
  • Reducing Complexity in developing and maintaining your system
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