The Inland Revenue Board of Malaysia (’IRBM’ or ‘LHDNM’ locally) released guidelines on the implementation of the upcoming e-invoicing mandate. The guidelines are meant to provide Malaysian taxpayers with clear and accessible instructions on implementing e-invoicing and the related compliance requirements, ensuring a smooth and structured transition.

Timeline

The implementation will be conducted in phases, with the first phase starting on June 1, 2024, covering taxpayers with an annual turnover or revenue exceeding RM100 million (USD 22 million). It will be gradually extended to all taxpayers, with a full rollout targeted in 2027.

Below is the detailed implementation timeline:

Impact

The invoicing requirements of Malaysian businesses will change significantly due to the planned introduction of e-invoicing in 2024.

Businesses should proactively prepare for the upcoming e-invoicing mandate and assess their current IT systems, ERP systems, and tax compliance processes to ensure they are aligned with the new requirements.