e-Invoicing & Middleware

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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 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 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 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 Middleware

  • 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 Middleware, which will handle and process e-invoices on your behalf
  • 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 Middleware financial platform.

Send the data to us and we'll take care of the rest.
BDO

How BDO Can Help


Business and Tax Process GAP Analysis


System Implementation Support for Direct API Integration 


Middleware Support


Post-Implementation Support & Guidance

e-invoicing middleware

Why BDO Middleware

  • Limited modifications to existing Enterprise resource planning (“ERP”) and business system
  • Agility in adapting to regulatory changes 
  • Diverse Integration with – API, SFTP, Upload – Excel or CSV
  • Specific workflow management
  • Platform to implement specific business processes like option to email invoice to customer, accept/ reject, self-billing etc. 
  • Ensuring businesses remain compliant by reducing errors
  • Enhanced security measures by providing a Centralised Platform for managing access controls, encryption, and authentication
  • Automated e-Invoicing processing resulting in increased efficiency
  • Robust eco-system for tax filing and administration
  • Scalable architecture accommodating incremental volume of invoices
  • Comprehensive solution for all scenarios of Income and Expenses
  • Dedicated Helpdesk providing 24/7 support to Taxpayers.

BDO 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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