The Inland Revenue Board of Malaysia (IRBM) has announced that starting from June 1, 2024, businesses with an annual turnover of RM100 million and above will be required to adopt e-invoicing. This requirement will be extended to all other businesses from January 1, 2027. The mandate applies to both domestic and cross-border transactions.
To facilitate the adoption of e-invoicing, the IRBM has provided two options for transmitting e-invoices. Suppliers can either create an e-invoice and share it with the IRBM via the MyInvois Portal or use an Application Programming Interface (API). This flexibility allows businesses to choose the method that best suits their operations.
The Malaysia Digital Economy Corporation (MDEC) serves as Malaysia’s Peppol Authority and is responsible for accrediting Peppol service providers and Peppol ready solution providers. The accreditation process takes into consideration local requirements and technical standards. This ensures that businesses in Malaysia can seamlessly integrate with the Peppol e-invoicing network.
To provide an update on the progress of the Malaysian e-invoicing initiative, Datuk Fadzli Abdul Wahit, Senior Vice President of Digital Industry Development at MDEC, will be presenting at the E-Invoicing Exchange Summit in Singapore from December 4 to 6, 2023. This summit brings together expert speakers and thought leaders from around the world to discuss the latest developments and future trends in e-invoicing and e-reporting.
Among the notable speakers at the summit are Kiren Kumar, Deputy Chief Executive of IMDA Singapore; André Hoddevik, Secretary General of OpenPeppol; Mark Stockwell, Director of eInvoicing at the Taxation Office of Australia; Michael Alp, COO of the Ministry of Business, Innovation and Employment of New Zealand; Hiroyuki Kato, Director of the Digital Agency at the Government of Japan; Mehrdad Talaifar, Digital Tax Technology Strategy and Operational Tax Transformation Executive from the UAE; Michel Gilis, Head of the Interoperability Working Group at GENA – Global Exchange Network Association; and Dolf Kars and Alex Baulf, Board of Directors at DBN Alliance, USA.
The E-Invoicing Exchange Summit offers a unique opportunity for attendees to engage with these leading experts from governments and industries. It provides a platform to discuss recent developments and future trends in e-invoicing and e-reporting, with a specific focus on APAC countries.
For more information about the E-Invoicing Exchange Summit and special ticket rates for public sector entities and businesses that generate a high volume of invoices, please visit the event’s website at www.exchange-summit.com/events/asia/agenda.
This announcement from the IRBM marks a significant step towards digitalizing business processes in Malaysia. By mandating e-invoicing, the government aims to streamline operations, reduce paperwork, and enhance efficiency in the business ecosystem. It also aligns with global trends towards digital transformation and the adoption of technology to drive economic growth.
The adoption of e-invoicing will bring numerous benefits to businesses, including faster payment cycles, reduced errors, improved cash flow management, and enhanced data analytics capabilities. It will also contribute to a greener and more sustainable business environment by reducing the consumption of paper and other resources.
As businesses prepare for the implementation of e-invoicing, it is crucial for them to familiarize themselves with the requirements and choose the most suitable method for their operations. The IRBM and MDEC will provide guidance and support to businesses throughout the transition process to ensure a smooth and successful implementation.
In conclusion, the mandatory adoption of e-invoicing in Malaysia is a significant development that will drive digital transformation in the business sector. It presents an opportunity for businesses to improve their operations, enhance efficiency, and contribute to a more sustainable future. The E-Invoicing Exchange Summit provides a platform for knowledge sharing and collaboration among industry experts, further accelerating the adoption of e-invoicing in Malaysia and the wider APAC region.