What is E-Invoicing in Malaysia? Full Guidelines for 2025

E-invoicing is becoming mandatory in Malaysia — but what exactly an e-invoice is, and how does the MyInvois system fit in? If you’ve been searching for clear, step-by-step answers, you’re in the right place. This guide is designed to help you understand the process, requirements, and benefits of e-invoicing in a simple and practical way.

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Understanding e-invoicing in Malaysia: What it is and why it matters

E-invoicing in Malaysia is more than just sending a PDF. It refers to the digital generation, validation, and exchange of invoices in a structured, machine-readable format, typically XML. The main goal is to improve transparency, accuracy, and tax compliance.

In Malaysia, e-invoicing has been designed around the MyInvois system, introduced by the Inland Revenue Board of Malaysia (LHDN). This system is mandatory, and all e-invoices must be validated through MyInvois before being issued to recipients.

E-invoicing helps reduce human error, streamlines business processes, and strengthens the country’s tax infrastructure. For businesses, it’s not just about staying compliant — it’s also a gateway to digital transformation.

When is e-invoicing Mandatory?

The Inland Revenue Board of Malaysia (LHDN) has established a phased rollout for e-invoicing Malaysia, based on the annual turnover of businesses. This approach allows companies to gradually adapt and ensure readiness.

The official timeline is as follows:

August 2024 – Mandatory for businesses with annual revenue exceeding RM100 million.
January 2025 – Applies to those with revenue above RM25 million.
July 2025 – Expands to businesses earning over RM10 million.
January 2026 – Becomes mandatory for all remaining taxpayers, regardless of size.

This staggered implementation gives smaller businesses time to prepare their systems, processes, and teams. However, adopting e-invoicing early is highly recommended to avoid last-minute complications and to benefit from automation and efficiency gains.

👉 You can view the complete implementation plan and updates on the LHDN e-invoicing portal.

What is MyInvois and how does it work?

MyInvois is the official portal created by LHDN to manage and validate e-invoices before they are sent to recipients. All invoices — regardless of format or software used — must go through MyInvois first.

Here’s how the process works:

Create your e-invoice (in structured XML format).
Submit it to MyInvois via the portal or API.
Receive a response from LHDN: approval or rejection.
If approved, MyInvois returns a unique validation code and a QR code.
You must embed the QR code into the invoice.
Only then can you send it to your customer.

📌 Can I send an invoice without submitting it to MyInvois first?

No. In Malaysia, the invoice must be validated by MyInvois before it’s legally recognized. Sending it directly to your buyer without validation violates compliance rules.

How to do e-invoicing in Malaysia: a step-by-step guide

You can comply with e-invoicing either by manually uploading invoices to the MyInvois portal, or using software that integrates directly with MyInvois to automate the entire process.

Let’s break it down:

Prepare your invoice with required fields (buyer, seller, items, tax, etc.).
Format it in XML, the structured format required by MyInvois.
Submit it via the portal or your integrated system.
Wait for validation (usually instant).
Embed the QR code you receive from MyInvois.
Send the validated invoice to your customer.

📌 Can I use MyInvois without special software?

Yes. Small businesses can log in to the portal and submit invoices manually. However, for companies dealing with high volume, automation via integrated solutions is strongly recommended to avoid delays and errors.

Want to simplify your MyInvois reporting?

Are you looking for a simpler way to comply with MyInvois and send validated e-invoices? With B2Brouter, you can:

Generate and submit your invoices to MyInvois in seconds.
Automatically embed QR codes once validated.
Be Peppol-ready for cross-border e-invoicing
Receive and manage incoming e-invoices from your suppliers in ine place.
Avoid switching between portals or tools — do everything in one place.

👉 Learn more about our solution for Malaysia

What is B2B e-invoicing and how does it fit in?

B2B e-invoicing refers to electronic invoicing between businesses (as opposed to B2C or B2G). In Malaysia, all B2B transactions above a certain threshold must follow the e-invoicing format and be processed through MyInvois. This is crucial for:

Transparent tax reporting
Automated bookkeeping
Accurate audits

Structured, validated invoices become part of a real-time tax reporting system — and help reduce tax evasion while improving cash flow visibility.

📌 Do freelancers or small business owners also need to use e-invoicing?

It depends on your revenue. By 2026, all businesses, regardless of size, will be required to comply. It’s best to prepare early.

The role of Peppol: recommended, but not mandatory

Peppol (Pan-European Public Procurement Online) is an international framework that enables businesses to exchange electronic documents — like invoices — across different systems using a common, standardized format. It ensures that documents are machine-readable and legally valid across borders.

Malaysia initially explored a Peppol-based e-invoicing model, widely used in Europe and parts of Asia. While Peppol is not mandatory, it is recommended by the government to help businesses adopt a more structured and interoperable invoicing process.

Why use it?

Ensures structured, interoperable e-invoices
Facilitates cross-border invoicing
Eases the transition to MyInvois
Helps businesses align with future-proof digital standards

📌 Is Peppol required for MyInvois?

No. But using Peppol standards helps generate structured invoices, making it easier to meet MyInvois requirements — and future-proofs your business for international trade. Check out our full article explaining the Peppol network and its benefits.

Why e-invoicing matters for every business: benefits beyond compliance

Even though e-invoicing in Malaysia is driven by regulation, its advantages go well beyond legal compliance. Businesses that adopt e-invoicing early benefit from:

Faster invoice processing – Digital workflows reduce delays and speed up approvals and payments.
Fewer manual errors – Automation ensures data accuracy, reducing disputes and rejections.
Better cash flow control – Real-time tracking helps businesses plan and manage finances more effectively.
Improved relationships with suppliers – Accurate, timely invoices lead to smoother collaboration and trust.
Seamless audit-readiness – All data is validated, traceable, and ready for inspections or compliance checks.
Scalability and efficiency – As your business grows, automated invoicing reduces workload and admin overhead.

By digitizing early and aligning with e-invoicing Malaysia requirements, businesses gain not just compliance — but also a smarter, more agile financial process.

🏅Certified and affordable E-Invoicing in Malaysia

We’re proud to be listed by the Ministry of Digital and Malaysia Digital Economy Corporation (MDEC) among the Freemium and Affordable E-Invoicing Solution Providers. This recognition confirms our solution meets both Peppol and MyInvois requirements — making it a trusted choice for businesses in Malaysia.

If you need a reliable way to manage e-invoicing from end to end, B2Brouter makes it simple — without extra costs or complexity.

👉 Read the official announcement

Final guidelines: best practices to stay compliant with MyInvois

To ensure your business is ready for e-invoice Malaysia regulations and avoids compliance issues, follow these essential best practices:

✅ Use structured XML formats
All invoices submitted to MyInvois must follow the official XML schema. This ensures that the tax authority can read and validate every field correctly — from amounts to parties involved.

✅ Submit every invoice through MyInvois
Your invoice is only considered legally valid once it has been validated through the MyInvois platform. Sending it directly to your customer before validation may lead to non-compliance penalties.

✅ Wait for validation before sending
Once validated, MyInvois will return a unique QR code and a document status. Only then should the invoice be delivered to your customer — now containing the QR code that proves compliance.

✅ Archive validation responses and QR codes
Always keep records of both the invoice and the response received from MyInvois, including the QR code. This is vital for audits, corrections, and legal traceability.

✅ Stay updated with LHDN regulations
The e-invoicing Malaysia framework continues to evolve. Check regularly for updates on formats, deadlines, and technical requirements via the official LHDN e-invoice portal.

The shift toward e-invoicing in Malaysia marks a significant change in how businesses handle their invoicing and tax compliance. While the process may seem complex at first, understanding the structure, deadlines, and tools available — like MyInvois and Peppol — will help you adapt confidently and stay compliant.

Whether you’re a large corporation or a small business owner, preparing early will save you time, reduce errors, and position your business for future growth.

If you’re still exploring the best way to implement e-invoicing, don’t hesitate to consult trusted providers or explore certified solutions that support both MyInvois integration and Peppol compatibility.

💡 Did you know?

With B2Brouter, you can handle every step of the MyInvois process — from generating structured XML e-invoices to submitting them, receiving QR validations, and sending them to clients — all in one place.

Our platform is directly connected to MyInvois and Peppol, which means you’re always compliant and future-ready — without needing multiple tools or manual uploads.

👉 See how B2Brouter can simplify your e-invoicing