Is your company ready for E-invoicing?

What is E-Invoicing and How Does it Impact your Company in Malaysia?

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E-Invoicing Malaysia

E-Invoicing is now a part of Malaysia’s tax system, and it’s changing how businesses in the country work. Instead of using paper or electronic documents for things like invoices, credit notes, and debit notes, e-Invoicing with centralised Continuous Transaction Control (CTC) is taking over to make financial operations smoother and more precise.

An e-Invoice includes the same important details as traditional invoices, such as information about the supplier and buyer, a description of the items, quantities, prices before taxes, the tax amount, and the total cost. This information is used to keep track of daily business transactions.

E-Invoicing Timeline

Benefits of E-Invoicing for Business

Integrated Invoicing Procedure

Enhance your business's efficiency by adopting end-to-end process integration, which harmonises your invoicing process. Through streamlined document creation, submission, and automated data entry, e-Invoices facilitate seamless transactions.

Simplified Tax Return Submission

Experience the advantages of a fully integrated system, ensuring precise and efficient tax reporting, with seamless operation for your business.

Facilitates Operational Optimisation

E-Invoicing revolutionises operations, empowering large businesses with streamlined processes, driving efficiency, and delivering significant time and cost savings.

Digitised Financial Reporting in Real Time

By embracing e-Invoicing in Malaysia, you can align your financial reporting and processes with industry standards tailored for micro, small, and medium-sized enterprises (MSMEs).

Comparison of the Submission Methods

There are 2 ways to generate e-Invoices, automatic submission via Direct Application Programming Interface (API) Integration, or manual submission via MyInvois Portal. To decide which submission method is more suitable for you, let’s look at the intrinsic difference between these 2 methods.

As highlighted in the table above, it is more convenient for businesses with larger transactions to login and transmit the e-Invoice details through an Enterprise Resource Planning (ERP) system that offers Direct API Integration. It is hassle-free and more efficient since the whole process is fully automated.

IFCA API Integration is available in the suite of IFCA ERP systems, including PropertyX, ContractX, HotelX and more. These digital solutions are designed to reduce your workload by automating your business processes, including the submission of e-Invoices.

Ideal Submission Method For Businesses
with High Transaction Volumes

Direct Submission to LHDN through Software with API (Application Programming Interface)

The Importance of Automated
e-Invoicing Solution

Issuing Self-Billed e-Invoices with Ease

Whether it is Commission to Agents, Overseas Purchases, E-Commerce, Dividends, Taxes, or Gaming Payouts.

Reconciliation Between LHDN and Your Accounts

With Discrepancies between LHDN server and your system identified, it is easier than ever to reconcile the accounts.

Ultimate Compliance
Solution

Ensure Tax Compliance with efficient
e-Invoice issuance, insightful dashboards, role-based access, alert systems, as well as over 7 years of data archiving.

Penalty for
Non-Compliance

Under the Income Tax Act 1967, business owners may be fined between RM200 and RM20,000, or be imprisoned up to 6 months or both for non-compliance!

Your E-Invoicing Journey

E-Invoice Creation

When a sale or transaction takes place, which may include e-Invoice adjustments, the supplier initiates the e-Invoice creation process and sends it to the Inland Revenue Board of Malaysia (IRBM) for validation.

The submission can be done either automatically through the Direct API (Application Programming Interface) Integration provided by Enterprise Resource Planning (ERP) systems which streamlines the process, or manually at the MyInvois Portal.

Direct API Integration via an ERP system is preferred by businesses with a higher amount of sales, because it is automated and more efficient, thus hassle-free does not create additional workload for the businesses.

E-Invoice Validation

The validation of e-Invoices involves a real-time assessment by IRBM to ensure that they adhere to the necessary standards.

Following successful validation, suppliers can acquire a Unique Identifier Number from IRBM through Direct API Integration or Mylnvois Portal. This IRBM-issued number not only enhances traceability but also acts as a safeguard against e-Invoice tampering.

Validated E-Invoice Notification

When the e-Invoice validation process is successfully completed, whether automatically through the Direct API Integration or manually through Mylnvois Portal, IRBM will send the notifications to both the supplier and buyer.

This timely notification process ensures that all relevant parties are informed of the successful validation of the e-Invoice.

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E-Invoice Distribution

Upon successful validation, it becomes the supplier’s duty to furnish the approved e-Invoice to the buyer, including an integrated QR code. The QR code serves as a tool to verify the status of this e-Invoice via Mylnvois Portal.

Disapproval or Voiding of e-Invoice

Following the issuance of an e-Invoice, a specified timeframe is allocated for two essential actions:

  • Buyers may request the rejection of the e-Invoice.
  • Suppliers may request the cancellation of the e-Invoice.

 

It’s important to note that both rejection requests and cancellations must be substantiated by valid justifications.

Review of e-Invoices

Both the supplier and buyer can conveniently review their e-Invoice transactions via Mylnvois Portal.

What Can IFCA e-Invoicing Solution Do for You?

Ensuring Compliance Always

The system will be automatically updated whenever new rules and regulations are introduced, eliminating hassles on your side.

Seamless Integration with IFCA ERP Software

The e-Invoicing Solution works well with all IFCA ERP Software without disrupting your smooth business operation.

Accurate e-Invoicing Process

Experience high success rate with automated data validation and retries for guaranteed compliance.

Dedicated support team

Get personalised guidance from your dedicated account manager, who is ready to answer any compliance or technical questions.

Extra Features to Overcome Any Challenges

Automatically reconcile e-Invoices against your sales figures, and brilliant data analytics to assist you in all scenarios.

24/7 Reliability

Enjoy a robust API (Application Programming Interface) stack with auto-scaling and backup servers for uninterrupted service.

Start Your Company’s E-Invoicing Journey Today

Register Now

By registering, you confirm that you agree to the storing and processing of your personal data by IFCA MSC BHD as described in the Privacy Statement.

IFCA Software elevates efficiency with our award-winning Integrated End-to-End System. Streamline transactions, manage accounts, and ensure compliance effortlessly. Discover the power of E-invoicing with IFCA Software.