Retail is one of the most dynamic yet demanding industries. Whether you run a kedai runcit, clothing boutique, car workshop, or an electronics shop, daily operations are fast-moving. Managing stock, dealing with walk-in and online customers, restocking shelves, and keeping overheads in check can already stretch your resources.
Now with the Inland Revenue Board of Malaysia (IRBM) mandatory e-invoicing rollout, even small and mid-sized retail businesses need to prepare for a shift in how they issue invoices and track financial transactions. This guide walks you through what e-invoicing means for retail, how it affects your operations, and how to stay financially stable throughout the transition.
Read our e invoicing Malaysia guide here
What is E-Invoicing in the Context of Retail?
E-invoicing is the digital issuance, validation, and submission of invoices to the IRBM through its MyInvois system. Starting from 2024, Malaysian businesses, including retailers, will be required to issue e-invoices for all taxable sales and business expenses.
Retail businesses that fall under this requirement include:
- Kedai runcit (mini markets, convenience stores)
- Clothing and accessories shops
- Toy shops and hobby stores
- Electronics retailers
- Car workshops and repair shops
- Online shops and sellers across various platforms
Whether you operate fully offline, through marketplaces, or across both, you’ll need to ensure your transactions are recorded and invoiced digitally.
Retail Transactions That Require E-Invoices
The IRMB guidelines mandate that both income and expense transactions must be supported by e-invoices.
| Income Transactions | Expense Transactions |
| Product sales (walk-in and online) | Inventory purchases from suppliers |
| Repair or service charges | Rental of shop premises or warehouses |
| Pre-orders and deposits collected | Equipment, utilities, and advertising spend |
| B2B wholesale transactions | Digital tools or POS system subscriptions |
Refer to the IRBM specific industry guideline for the most updated details on e-invoicing for retailers. All e-invoices must be issued in a structured digital format (XML or JSON) and submitted via the MyInvois system either through direct entry or API integration.
Keeping these digital records helps with audit readiness, reduces tax-related disputes, and provides clearer visibility into your cash flow.
How E-Invoicing Applies to Retailers
Walk-in Purchases
For every sale, regardless of size, an e-invoice must be issued once the customer completes payment.
Online Sales
Whether through your own website or platforms like Shopee or Lazada, you are required to issue e-invoices for all completed sales.
Bulk or B2B Transactions
If you supply goods in bulk to other retailers or corporate clients, you must issue e-invoices for each payment made, including for deposits and balance payments.
Returns and Refunds
If a customer returns a product, you must issue a credit note e-invoice to reflect the refunded amount.
Challenges Retail Businesses Will Face with E-Invoicing
System Compatibility Issues
Many existing POS systems used by small retailers may not integrate with the MyInvois system, requiring system upgrades or replacement.
Manual Processing for Small Shops
Retailers without a digital system may need to manually submit e-invoices through the MyInvois portal, which can be time-consuming if you handle high volumes.
Cash Flow Strain
You may need to pay for stock, rent, or salaries even while waiting for payments from B2B clients or during slower periods.
Staff Training and Operational Overhead
Retailers may need to train frontline staff to manage invoicing, refunds, and reporting to ensure compliance.
Tip for Retailers Using Manual Systems
If your business doesn’t use a digital POS, you can still issue e-invoices manually via the MyInvois Portal. While this is acceptable, upgrading to an API-compatible POS system may save time and reduce errors in the long run.
How Retailers Can Prepare for E-Invoicing
Preparing early can reduce disruption. Here’s how:
- Review your current POS system to determine if it supports e-invoicing integration.
- Choose an IRBM-approved e-invoicing solution provider if your system needs upgrading. Need help understanding how to choose the right system? Explore JomeInvoice’s blog for more e-invoicing insights tailored to retail businesses.
- Create internal SOPs for how and when invoices are issued—including refunds, deposits, and daily sales.
- Train your team, especially cashiers and managers, to handle e-invoicing and use the new tools confidently.
- Plan ahead financially for both the system costs and possible short-term operational delays.
Financing Solutions to Support Retailers During the Transition
Complying with e-invoicing requirements may offer long-term benefits, but short-term costs can stretch your cash flow. Retailers must often invest in new systems, restock goods ahead of high seasons, or cover rent and wages while dealing with payment delays.
Funding Societies offers financing solutions designed for SMEs in retail:
Invoice Financing
Turn your issued e-invoices into upfront working capital. Access up to RM1 million to cover inventory restocking, rent, or supplier payments.
Micro Financing
Quick and collateral-free financing of up to RM200,000. Ideal for upgrading your POS system, onboarding new staff, or covering utilities during quieter months.
Islamic Financing Options
Shariah-compliant financing products are available for retail SMEs looking for ethical alternatives.
Government Support: Budget 2025 Incentives for Retailers
To support SMEs transitioning to e-invoicing, the government has announced several financial initiatives in Budget 2025:
- RM3.2 billion allocated for microloans through TEKUN and BSN
- RM50 million in matching grants for SMEs investing in digital tools, including e-invoicing systems
- RM3.8 billion from Bank Negara to support automation and digitalisation for SMEs
- RM20 billion in loan guarantees through SJPP, with RM5 billion reserved for Bumiputera entrepreneurs
Additional Tax Deduction
From YA 2024 to 2027, MSMEs can also claim up to RM50,000 per year in tax deductions for ESG-related costs, including consultancy fees for e-invoicing implementation.
Retailers can tap into these incentives to ease the cost of compliance and digital upgrades.
Final Thoughts
E-invoicing may feel like a hassle upfront, but it’s an opportunity to professionalise your operations, track cash flow more clearly, and avoid future tax complications.
With financing from Funding Societies and support from government grants, your retail business can make the transition smoothly, and continue growing with stronger financial management.
