API Integration vs. Manual Submission: Choosing the Best Method for myInvois Portal

The Inland Revenue Board of Malaysia (IRBM) is rolling out mandatory e-Invoicing as part of its digital transformation efforts to enhance tax compliance and improve business efficiency. This initiative is aligned with global trends, where tax authorities are moving towards electronic invoicing to curb fraud, ensure real-time transaction monitoring, and reduce administrative burdens. As compliance deadlines approach, businesses must evaluate the most suitable method to meet regulatory requirements. The two primary options available are:

1. API Integration: Automating invoice submission via direct system-to-system connectivity.
2. Manual Submission: Using the myInvois portal to enter invoice details manually.

Each method has advantages and challenges, and choosing the right one depends on factors like transaction volume, technical capabilities, budget, and business scalability. In this blog, we will explore both approaches in-depth to help businesses make informed decisions about their e-Invoicing strategy.

Understanding Malaysia’s E-Invoicing System

Before diving into the implementation options, it is essential to understand how Malaysia’s e-Invoicing system works.

Key Objectives of E-Invoicing in Malaysia

• Enhance Tax Compliance: Real-time invoice submission allows tax authorities to monitor transactions more effectively and minimize fraud.
• Improve Efficiency: Digital invoicing reduces paperwork, speeds up processing times, and minimizes manual errors.
• Encourage Digitalization: Businesses can streamline operations by integrating invoicing processes into digital systems.
• Reduce Costs: Automation cuts down on administrative expenses associated with traditional invoicing.

How E-Invoicing Works

When a business issues an invoice, it must be reported to the IRBM in real time. The IRBM validates and assigns a Unique Identification Number (UIN) before the invoice can be shared with customers. The entire process ensures transparency and authenticity in financial transactions.

Businesses can achieve compliance in two ways:

• API Integration: Automates the process by linking accounting software with IRBM’s system.
• Manual Submission: Requires businesses to enter invoices through the myInvois portal individually or in batches.

Now, let’s explore these options in detail.

API Integration: A Streamlined Approach to E-Invoicing

What is API Integration?

Application Programming Interface (API) integration allows businesses to connect their existing Enterprise Resource Planning (ERP) or accounting systems directly with the IRBM’s e-Invoicing system. This means invoices are automatically generated and submitted to IRBM in real time, eliminating manual intervention.

Benefits of API Integration

1. Automation and Efficiency

• Eliminates manual data entry, reducing administrative workload.
• Enhances operational speed, ensuring real-time invoice validation.
• Reduces turnaround time for invoice approvals and payments.

2. Improved Accuracy and Compliance

• Minimizes human errors such as incorrect invoice amounts, missing details, or duplicate submissions.
• Ensures compliance with Malaysia’s e-Invoicing format and validation rules.
• Provides audit trails for tax authorities, improving transparency.

3. Scalability for Growing Businesses

• Suitable for businesses with a high volume of transactions.
• Reduces dependency on manual processes, allowing businesses to scale effortlessly.

4. Integration with Business Systems

• Enables seamless invoicing within existing accounting, ERP, and tax management software.
• Supports multi-user environments, allowing different departments to access real-time invoice data.

Challenges of API Integration

1. Initial Setup Complexity

• Businesses may require IT expertise or third-party vendors to set up API connections.
• Existing accounting software may need updates or customization.

2. Cost of Implementation

• API integration may involve upfront costs for software development, licensing, and maintenance.
• Businesses may need ongoing support for troubleshooting and system updates.

3. Need for Technical Expertise

• IT teams must ensure the system remains compliant with future regulatory changes.
• Proper security measures must be in place to protect sensitive business data.

Manual Submission via myInvois Portal: A Hands-On Approach

What is Manual Submission?

For businesses that lack technical infrastructure or prefer a simpler approach, IRBM provides the myInvois portal, where invoices can be entered manually or uploaded in batches. This method does not require system integration but involves direct interaction with the portal.

Benefits of Manual Submission

1. Lower Initial Costs

• No need for software integration or external IT support.
• Suitable for small businesses with limited budgets.

2. Ease of Use

• Provides a straightforward, user-friendly interface for invoice submission.
• Allows businesses to comply quickly without complex implementation.

Challenges of Manual Submission

1. Time-Consuming Process

• Entering invoices manually can be labor-intensive, especially for businesses with high transaction volumes.
• Batch uploads can help but still require human intervention.

2. Increased Risk of Errors

• Manual entry increases the likelihood of typos, missing data, or incorrect invoice details.
• Errors may lead to rejections or penalties due to non-compliance.

3. Limited Scalability

• As businesses grow, manual invoicing may become inefficient and require migration to an automated system.

Key Factors to Consider When Choosing an E-Invoicing Method

1. Transaction Volume

• High Volume: API integration is ideal for businesses issuing numerous invoices daily.
• Low Volume: Manual submission may be sufficient for businesses with fewer transactions.

2. Resource Availability

• Technical and Financial Resources: Larger companies with IT teams can benefit from API integration.
• Limited Resources: Small businesses may find manual submission more feasible initially.

3. Compliance and Error Management

• API integration ensures real-time compliance and reduces errors.
• Manual submission requires careful monitoring to prevent mistakes.

4. Future Growth and Business Expansion

• API integration supports business scalability.
• Manual submission may become a bottleneck as transaction volumes increase.

5. Implementation Timeline

• API integration takes time and planning.
• Manual submission is quicker to implement but less efficient long-term.

Conclusion: Selecting the Right Approach for Your Business

Choosing between API integration and manual submission for e-Invoicing compliance depends on your business’s operational needs, technical capacity, and long-term growth strategy.

For businesses seeking efficiency, automation, and scalability, API integration is the best choice despite the higher initial investment. Meanwhile, smaller businesses or those with limited IT resources may find manual submission a suitable short-term solution while preparing for full automation in the future.

Partner with Advintek for Seamless E-Invoicing Compliance

At Advintek , we specialize in e-Invoicing solutions tailored to your business needs. As an ISO 27001-certified Peppol Access Point Provider with MDEC accreditation, we provide:

• End-to-end API integration services for seamless e-Invoicing.
• Consultation on compliance strategies to align with IRBM regulations.
• Ongoing support and system upgrades to ensure smooth operations.

Get in touch with Advintek today and ensure hassle-free e-Invoicing compliance for your business!