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.
Benefits of E-Invoicing for Business
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.
Your E-Invoicing Journey
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.
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.
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.
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