The Malaysian MyInvois Mandate: Key Dates and Requirements

Hey business owners!

As you probably know, Malaysia is gearing up for a significant shift in how we handle invoicing. The mandatory e-invoicing system for pre-approval is rolling out soon, and it’s essential to get familiar with the timeline and requirements. Let’s break down what you need to know in a straightforward, casual style.

Detailed Timeline for the Rollout in Malaysia

Here's the lowdown on the key dates you should mark on your calendar:

• August 1, 2024: Businesses with an annual turnover exceeding MYR 100 million must start using MyInvois.
• January 1, 2025: The requirement extends to businesses with an annual turnover of more than MYR 25 million and up to MYR 100 million.
• July 1, 2025: All other businesses, regardless of turnover, will need to comply with the MyInvois pre-approval mandate (LHDN Malaysia) (EDICOM).

These staggered dates are designed to help businesses gradually transition to the new system, ensuring everyone has ample time to prepare.

Specific Requirements for Businesses at Each Stage

Let’s dive into what’s expected from businesses at each stage:

1. August 1, 2024: Large Enterprises.
2. January 1, 2025: Medium-Sized Businesses.
3. July 1, 2025: All Other Businesses.

Compliance Guidelines and Penalties for Non-Compliance

Staying compliant is crucial. Here’s what you need to know:

• Ensure Accuracy: Your e-invoices must be accurate and include all required details such as invoice number, date, supplier and customer details, line items, totals, and taxes.
• Timely Submission: Invoices should be submitted in real-time or as soon as the transaction occurs.
• System Integration: Use IRBM-approved software for generating and submitting to MyInvois.
• Record Keeping: Maintain digital records of all e-invoices as required by law.

Penalties for Non-Compliance:

• Fines: Businesses failing to comply with the e-invoicing requirements may face fines.
• Audits: Increased likelihood of audits from the IRBM.
• Legal Action: In severe cases, non-compliance could lead to legal action and reputational damage (LHDN Malaysia) (Global VAT Compliance).

Official Resources and Guidelines from the IRBM

To help you navigate these changes, the Inland Revenue Board of Malaysia (IRBM) has provided several resources:

• IRBM Website: The official site offers guidelines, FAQs, and updates on e-invoicing. Check it out here.
• MyInvois Portal: This portal will be your go-to for submitting e-invoices and ensuring compliance. It provides tools and support for businesses of all sizes.
• Guideline Documents: Download the latest versions of the e-invoice guidelines (version 3.0) and specific guidelines (version 2.2) for detailed instructions (KPMG).
• Support Channels: IRBM has set up support channels to assist businesses with the transition. Don’t hesitate to reach out if you need help.

Final Thoughts

Transitioning to MyInvois system is a significant change, but it’s one that promises greater efficiency, cost savings, and security for your business. Stay ahead of the curve by familiarising yourself with the key dates, specific requirements, and compliance guidelines. Use the resources provided by the IRBM to ensure a smooth transition.

Stay tuned for our next article where we’ll explore the benefits of Pre Invoice approval in more detail. Until then, start preparing and embrace the future of invoicing!