Malaysia’s E-Invoice Pilot Project and Proposed Rollout Timeline

The Inland Revenue Board (IRB) aims to enhance tax administration and streamline financial records for taxpayers with e-invoicing.

In early March 2023, the Inland Revenue Board (IRB) of Malaysia unveiled a proposed timetable for the gradual implementation of an electronic invoicing system, known as e-invoicing. This initiative aims to improve tax administration management while simplifying financial record-keeping for taxpayers. The plan entails a phased rollout, commencing in 2023 for selected companies, followed by a subsequent implementation based on annual sales. The initial group to adopt the new electronic invoicing (e-invoice) system will consist of 4,000 companies with revenue exceeding RM100 million, starting from June 1 next year.

The ultimate goal is for all businesses in Malaysia to adopt e-invoicing by January 2027. However, specific details regarding the type of e-invoicing system to be adopted have not yet been publicly released. According to Mohd Nizom, the implementation of the e-invoice system aims to enhance efficiency in the country’s tax management administration, aligning with the objectives outlined in the 12th Malaysia Plan 2021-2025 to strengthen digital infrastructure services.

The IRB shared a timeline for the e-invoicing rollout during a recent presentation at the National Taxation Seminar held in early March 2023:

  • In 2023: Infrastructure preparation and the launch of a pilot project for selected companies. Other companies not selected for the pilot project have the option to voluntarily participate.
  • Starting from June 2024: Mandatory implementation for businesses with an annual sales threshold of MYR 100 million.
  • Starting from January 2025: Mandatory implementation for businesses with an annual sales threshold of MYR 50 million.
  • Starting from January 2026: Mandatory implementation for businesses with an annual sales threshold of MYR 25 million.
  • Starting from January 2027: Mandatory implementation for all businesses.

Moreover, starting from January 2024, businesses have the flexibility to voluntarily adopt e-invoicing before the mandatory implementation date that aligns with their sales threshold.

The e-invoice system is a crucial part of the government’s plan to digitise tax administration, serving as an initiative to drive the national digitalisation agenda in line with the Digital Malaysia Economic Blueprint (MyDigital). It is also one of the programs under the National e-commerce Strategic Roadmap (NESR) 2.0, addressing the global need for businesses to exchange information and conduct transactions seamlessly. Businesses are advised to stay informed about the forthcoming changes and evaluate how e-invoicing can enhance their operations and compliance.

How Esker can help with your e-Invoicing initiative

Esker’s technology helps companies get the tools they need to deal with the rise in e-Invoicing technology. With decades of experience under Esker’s belt and robust global infrastructure in place, Esker provides your company precisely what’s needed to make your move to e-invoicing a triumphant one. As a certified solution provider of InvoiceNow, also known as PEPPOL, Esker sends and receives PEPPOL invoices seamlessly through our Accounts Payable and Accounts Receivable solution. Contacts us to learn more.