E-Invoicing Process in Malaysia:

1. Create & Submit invoice to LHDN via MyInvois
2. Real-time validation by LHDN system
3. Automatic notifications sent to both parties
4. QR code generation for verification
5. 72-hour rejection window if corrections needed
6. Full data access through MyInvois Portal
Submission Methods: MyInvois Portal (manual) or API integration (automated)

Submission only becomes mandatory once your business hits its compliance phase. Check your e-invoicing start date here.

Comprehensive Guide to E-invoicing in Malaysia

e-invoicing-process-through-myinvois-malaysia

  1. Issuing an E-Invoice: When there is a transaction, either a sale or adjustments to an e-invoice, the supplier creates an e-invoice and sends it to IRBM for validation through the MyInvois Portal or via API.
  2. E-Invoice Validation: IRBM performs real-time validation of the e-invoice to ensure that it meets all required standards and criteria. The supplier receives a Unique Identifier Number via the MyInvois Portal or API once the e-invoice is validated.
  3. Validated E-Invoice Notification: Once an e-Invoice is approved, both the supplier and buyer will receive notifications via the MyInvois Portal or API.
  4. E-Invoice Sharing: Validated e-invoices have a QR code, which may be utilised to verify their existence and status on the MyInvois Portal. After the e-invoice has been cleared, suppliers can share the QR code with purchasers to ensure transparency.
  5. E-Invoice Rejection or Cancellation: The buyer or supplier can reject or cancel the e-invoice within 72 hours of validation, as long as they provide sufficient justifications.
  6. MyInvois Portal Accessibility: Suppliers and buyers can both request and retrieve e-Invoice data through the MyInvois Portal.

To avoid delays or rejection, your e-invoice must follow the correct format and include key fields. See what your invoice must contain.

Special E-Invoice Scenarios

While most e-invoices are involve regular customer transactions, certain internal or non-standard business activities also require e-invoicing. These include:

Staff claims and reimbursements

Businesses may need to issue e-invoices when reimbursing employees for travel, meals, or out-of-pocket office expenses. Particularly if they are claimed back as business expenses.

Need help with staff claims? This step-by-step guide on processing e-invoice staff claims by JomeInvoice walks you through the process clearly and practically.

Inter-branch transfers or internal billing

For businesses with multiple entities or branches, transactions between entities may also require e-invoicing depending on how they recordcosts and revenue.

Deposit refunds or partial adjustments

If a customer requests a refund on a partial order or you need to return a security deposit, they must be reflected as a credit note or cancellation within the e-invoicing system.

How E-Invoicing Works in Different Industries

While the steps to validate and submit e-invoices are the same, how businesses apply them depends on their workflows and tools. See how the e-invoicing process works across different industries:

For a more comprehensive guide, read our complete e-invoicing Malaysia guide and get the latest information on start dates, requirements, exemptions and more.