Malaysia's MyInvois E-Invoicing: What Businesses Need to Know in 2025

Understanding Malaysia's New E-Invoicing Mandate

Malaysia is making a significant leap toward digitalization of tax administration with the implementation of MyInvois, the country's official e-invoicing system. As of 2025, businesses across Malaysia are gradually being required to adopt this system for their invoicing processes.

The Inland Revenue Board of Malaysia (LHDN) has introduced MyInvois as part of its ongoing efforts to enhance tax compliance, reduce tax leakage, and streamline business operations. This system requires businesses to issue and process invoices electronically according to a standard format specified by LHDN.

Implementation Timeline: Are You Affected?

According to the official LHDN guidance (updated on 21 February 2025), the rollout of MyInvois is being implemented in phases based on business annual turnover or revenue:

• Phase 1 (August 1, 2024): Taxpayers with an annual turnover or revenue of more than RM100 million
• Phase 2 (January 1, 2025): Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM100 million
• Phase 3 (July 1, 2025): Taxpayers with an annual turnover or revenue of more than RM500,000 and up to RM25 million
• Phase 4 (January 1, 2026): Taxpayers with an annual turnover or revenue of up to RM500,000

Note: For the most up-to-date and comprehensive information on the e-invoicing implementation timeline, please refer to the official LHDN website.

This phased approach gives businesses time to prepare, but it's crucial to start planning your transition well ahead of your compliance deadline.

Key Requirements for MyInvois Compliance

To comply with the MyInvois system, businesses must:

• Generate invoices that meet LHDN's specified format and requirements
• Include mandatory information such as Tax Identification Number (TIN), detailed item descriptions, tax amounts, and more
• Submit e-invoices to LHDN through their API or portal
• Ensure invoices contain a valid QR code generated by the LHDN system
• Maintain proper digital records of all e-invoices for at least 7 years

Non-compliance with these requirements may result in penalties and difficulties in claiming tax deductions.

Benefits of E-Invoicing for Malaysian Businesses

While adapting to a new system requires some initial adjustment, e-invoicing offers numerous benefits:

• Reduced operational costs: Save on paper, printing, and physical storage
• Improved efficiency: Automate invoice processing and reduce manual errors
• Faster payments: Digital invoices typically result in quicker payment cycles
• Enhanced record-keeping: Easier access to organized financial records
• Environmental benefits: Significant reduction in paper usage

Challenges Businesses May Face

The transition to e-invoicing comes with potential challenges:

• Technical requirements: Understanding and implementing the API integration
• Staff training: Ensuring your team understands the new processes
• System adjustments: Modifying existing accounting or ERP systems
• Compliance verification: Ensuring all invoices meet the required standards

How MyEzyInvois Simplifies Your Compliance Journey

At MyEzyInvois, we've developed Malaysia's first and most affordable plug-and-play e-invoicing solution specifically designed to help businesses seamlessly transition to MyInvois compliance. Our platform eliminates the technical complexities, offering:

• Zero registration fees: We believe essential compliance tools shouldn't come with premium price tags
• Intuitive interface: Generate compliant invoices with minimal training
• Automatic compliance checks: Ensure every invoice meets LHDN requirements
• Direct LHDN submission: Submit invoices to LHDN with a single click
• Auto-fill functionality: Save time with stored customer information
• Multilingual support: Work in English, Bahasa Malaysia, Mandarin, or Tamil

Don't let e-invoicing compliance become a burden on your business. With MyEzyInvois, you can achieve full compliance without the technical hassle or expensive implementation costs that typically come with new regulatory requirements.