E-Invoicing Malaysia Explained: Who Issues, Manages & Oversees It?
E-invoicing is set to become a cornerstone of modern tax compliance the more Malaysia advances into digital transformation. With the Inland Revenue Board (LHDN) spearheading the initiative, understanding who provides, issues, and manages e-invoices is essential for every business, freelancer, and service provider.
This article clarifies the roles involved in Malaysia’s e-invoicing ecosystem—especially the distinction between the system provider, the issuer of an e-invoice, and those responsible for ensuring compliance.
Who Issues an E-Invoice?
The seller or supplier of goods or services is responsible for issuing an e-invoice.
Whether you’re:
- A business selling products to another business (B2B)
- A company providing services to consumers (B2C)
- Or a vendor supplying to the government (B2G)
The party delivering the goods or services must generate and submit the e-invoice.
Examples include:
- A retail business invoicing a distributor
- A freelancer billing a client for design services
The e-invoice is created by the supplier and submitted via LHDN’s MyInvois platform for validation and approval.
Who is Responsible for Invoicing?
While the seller issues the e-invoice, they are also fully responsible for:
- Accurate data entry (amounts, tax information, buyer details)
- Immediate submission to the MyInvois platform
Responding to any rejection or validation feedback from LHDN
These responsibilities typically fall under a business’s finance, accounting, or operations team. Ensuring correctness and compliance is vital, as errors can delay payments and potentially trigger penalties.
Who is Required to Issue an E-Invoice?
Malaysia’s e-invoicing rollout is based on annual business turnover:
Business Turnover | Mandatory E-Invoicing From |
Over RM100 million | 1 August 2024 |
RM25 million – RM100 million | 1 January 2025 |
RM500,000 – RM25 million | 1 July 2025 |
RM150,000 – RM500,00 | 1 January 2026 |
This applies to:
- Companies and SMEs
- Sole proprietors and freelancers
- Partnerships and LLPs
Relevant transactions include sales, services, rental, royalties, and more. Every taxable supply or income-generating activity eventually needs to be recorded via e-invoice.
How to Generate an E-Invoice in Malaysia
1. Via the MyInvois Portal (Manual)
Suitable for small businesses and freelancers. Users log in and manually enter invoice details into the online form.
2. System/API Integration
Ideal for medium to large enterprises using ERP or accounting software. Your system connects directly to MyInvois to automate invoice submission.
Step-by-step process:
- Prepare invoice data (including buyer and seller details, item descriptions, tax information)
- Submit to MyInvois via portal or API
- LHDN validates the invoice to ensure accuracy and compliance with the required format
- Approved e-invoice is returned and shared with the buyer
E-invoices must follow LHDN’s format (typically JSON), and include all mandatory fields. LHDN may also certify third-party e-invoicing providers who assist with integration and compliance.
Who is the Supplier on an Invoice?
The supplier refers to the person or business that sells the goods or services.
On an e-invoice, the supplier’s details are mandatory, including:
- Business name and registration number
- Tax identification number (TIN)
- Registered business address
The supplier is always the issuer of the invoice and is legally responsible for its accuracy and submission.
Who Will Issue the Invoice?
The seller or supplier is always the party issuing the invoice.
Even on e-commerce platforms like Shopee or Lazada, the underlying seller is legally the issuer of the e-invoice. These platforms may assist by automating invoice generation, but responsibility ultimately rests with the seller.
In some cases, platforms might issue invoices on a seller’s behalf via integration with MyInvois, but sellers remain accountable for the accuracy of all invoice data.
Conclusion
To summarise:
- LHDN provides the MyInvois platform, but does not issue invoices or act as a service provider
- The supplier or seller is both the issuer and the responsible party for e-invoices
- Malaysia’s rollout plan requires all businesses to comply by beginning 2026
- Generating e-invoices can be done manually or via integrated software systems
As the compliance date approaches, it’s critical for businesses to:
- Understand their role in the e-invoicing process
- Ensure their systems or teams are ready for submission
- Consider early adoption to avoid last-minute disruptions
IFCA software serves as an e-invoice software provider in Malaysia with the software, EIX, aiming to assist businesses with their e-invoicing. If you’re looking for affordable and user-friendly software,
