Malaysia e-Invoicing Guide

Malaysia has implemented a Continuous Transaction Control (CTC) model through its MyInvois platform, operated by the Inland Revenue Board (IRBM/LHDN). Suppliers submit every e-invoice, whether B2B, B2G, or B2C, to MyInvois, which validates it in near real time before the invoice is shared with the buyer.

The system uses UBL 2.1 format (supporting both XML and JSON), and Appendix 1 of the e-Invoice Guideline lists the 55 data fields an e-invoice can carry. Submissions through the API are signed with the supplier's own digital certificate. On validation, IRBM returns a unique identifier and a QR code that allows anyone to verify the invoice, creating a traceable invoice chain from seller to tax authority.

Malaysia rolled out in turnover-based phases, starting with the largest enterprises (above RM 100 million) in August 2024. Later phases lowered the threshold step by step, and Phase 4 (turnover up to RM 5 million) took effect in January 2026. The originally planned Phase 5 was dropped. Businesses that started operations between 2023 and 2025 with turnover of at least RM 3 million joined on 1 July 2026, and HASiL announced on 30 August 2026 that businesses below RM 3 million are exempt from 1 September 2026.

Businesses with annual turnover or revenue of RM 3,000,000 or more must issue e-invoices through the MyInvois platform. This covers B2B, B2G, and B2C transactions. Invoices reach MyInvois through the free MyInvois Portal, by batch upload or via the API, in UBL 2.1 format.

Businesses with turnover up to RM 5 million have a grace period allowing consolidated e-invoices without penalties until 31 December 2027, extended from December 2026 on 20 April 2026. Invoices in a currency other than MYR must carry the currency exchange rate from September 2025. Businesses below the RM 3 million threshold are exempt from the mandate entirely.

MyInvois operates as a near real-time validation platform. The supplier submits each invoice through the portal, by batch upload or via the API, and API submissions carry a digital signature made with the supplier's digital certificate. The platform validates the invoice structure and data, generally in under two seconds, and returns a unique identifier and a QR code, which the supplier embeds in the copy it shares with the buyer. A validated invoice can be rejected or cancelled only within 72 hours.

The QR code on each validated invoice links back to MyInvois, allowing the buyer (or any party) to verify the invoice's authenticity. Certain B2C transactions may use consolidated e-invoices rather than per-transaction submissions, providing some flexibility for high-volume retail scenarios.

Failing to issue an e-invoice is an offence under section 120(1)(d) of the Income Tax Act 1967, with the fine range listed below. Businesses in the fourth phase are protected from prosecution under section 120 until the interim relaxation ends on 31 December 2027. A validated e-invoice serves as the buyer's proof of expense, although HASiL's e-Invoice general FAQs confirm that tax deductions can still be claimed with existing documentation until the legislation is amended.