e-Invoicing

Ready for action?

The Inland Revenue Board (IRB) had announced that the e-Invoicing initiative will be implemented in phases beginning August 2024. Several guidelines have been issued to provide step-by-step guidance of key aspects of e-Invoicing.

e-Invoicing is applicable to all taxpayers undertaking commercial activities in Malaysia. The mandate extends to both domestic and international transactions. The scope of e-Invoicing typically encompasses business-to-business (B2B), business-to-consumer (B2C) and business-to-government (B2G).

Explore the complexities and nuances involved in implementing e-Invoicing for your business — from changes in technical processes to organisational culture and strategies — and the integration model options available to you.

Switching gears

Implementing e-Invoicing as digital reporting services can be tricky due to the complexity of businesses' current accounting systems and compliance requirements imposed by tax authorities. Ensuring the consistency, completeness, and correctness of data will be a challenge, especially when dealing with large volumes of transactions and diverse data sources.

Transitioning to e-Invoicing will involve significant changes in not just technical processes but organisational culture and management strategies as well.

Keeping up with evolving legal and regulatory framework

Changing management strategy

Assess available technology solutions on your current accounting system

e-Invoicing timeline: Full speed ahead

The first stage of e-Invoicing implementation begins in August 2024 and is mandatory for taxpayers with annual turnover or revenue of more than RM100 million per year. However, the IRB also welcomes organisations who fall outside of this criterion but are ready to volunteer themselves for the implementation.

Mandatory for taxpayers with annual turnover or revenue of >RM100 million

Note: Taxpayers can voluntarily participate in the implementation at an earlier date, regardless of annual turnover or revenue

Mandatory for taxpayers with annual turnover or revenue of >RM25 million and up to RM100 million.

Note: Taxpayers can voluntarily participate in the implementation at an earlier date, regardless of annual turnover or revenue

Mandatory implementation for all other taxpayers.

Gearing up for success

Evaluating your options for data integration in your e-Invoice flow

Based on IRB's guideline, there are two mechanisms to transmit e-Invoices to IRB’s database. The first option is through the MyInvois Portal, a free solution/portal hosted by IRB, and the second is through application programming interface (API).

Option 1:
The formula racing car

Direct integration via API

This option directly links up your Enterprise Resource Planning (ERP) or billing systems to IRB's MyInvois System.

Why choose this option

Additional modules offered by ERP to meet e-Invoicing requirements
Company’s preference on in-house solution integrator

Option 2:
The sports car

Integration through middleware

This option uses a middleware (in our case, a PwC tool) to connect to IRB's MyInvois System.

Why choose this option

Comprehensive offering for end-to-end e-Invoicing compliance
Viability to make multiple changes expected throughout the implementation phases - limited changes in ERP
E-reporting capabilities

How we can help

Providing you external perspectives and insights on e-Invoicing operations and processes, and systems capabilities.

Bringing you a team of consultants with experience in e-Invoicing implementation for a smooth and effective transition.

Providing guidance to you in selecting user-intuitive e-Invoicing solutions that are cost-effective.

Assisting in setting up robust data integration processes, ensuring a smooth implementation.

The PwC tool has inbuilt monitoring mechanisms to give you real-time visibility into invoicing activities, allowing proactive identification and resolution of issues.

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