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Media Release from LHDN on 21 July 2023.
An e-Invoice is a digital representation of a transaction between a supplier and a buyer. e-Invoice replaces paper or electronic documents such as invoices, credit notes, and debit notes.
An e-Invoice contains the same essential information as traditional document, for example, supplier’s and buyer’s details, item description, quantity, price excluding tax, tax, and total amount, which records transaction data for daily business operations.
It is a file created in the format either in the Extensible Markup Language( XML) or JavaScript Object Notation (JSON), that can be automatically processed by relevant systems. It is not invoice data in PDH or World Formats, or images of the invoice as JPG or TIFF, or HTML on a webpage.
An e-Invoice is a digital representation of a transaction between a supplier and a buyer. e-Invoice replaces paper or electronic documents such as invoices, credit notes, and debit notes.
An e-Invoice contains the same essential information as traditional document, for example, supplier’s and buyer’s details, item description, quantity, price excluding tax, tax, and total amount, which records transaction data for daily business operations.
It is a file created in the format either in the Extensible Markup Language( XML) or JavaScript Object Notation (JSON), that can be automatically processed by relevant systems. It is not invoice data in PDH or World Formats, or images of the invoice as JPG or TIFF, or HTML on a webpage.
The implementation of e-Invoice not only provides seamless experience to taxpayers, but also improves business efficiency and increases tax compliance. Overall benefits include:
1. Unified invoicing process through the streamlining of transaction document creation, and submission of data electronically to IRBM. The automation of data entry for transactions reduces manual efforts and human errors;
2. Facilitate tax return filing through seamless system integration for efficient and accurate tax reporting;
3. For larger businesses, the adoption of e-Invoice enables the streamlining of operations, resulting enhanced efficiency and significant time as well as cost savings through automated processes, seamless data integration, and improved invoice management; and
4. For micro, small and medium-sized enterprises (MSMEs), the phased implementation offers a progressive and manageable transition to e-Invoice, allowing MSMEs to align their financial reporting and processes to be digitalised with industry standards, ensuring that MSMEs to adapt over a longer period and mitigating potential disruptions.
To ensure a smooth transition and provide businesses sufficient time to adapt, the IRB will implement the e-invoicing in phase by categories.
(Refer to the timeline image)
To facilitate taxpayers’ transition to e-Invoice, IRBM has developed two (2) distinct e-Invoice transmission mechanisms:
a. Portal (MyInvois Portal) hosted by IRBM; and
b. Application Programming Interface (API).
MyInvois Portal contains all the functionalities required for taxpayers (supplier) to perform e-Invoice actions (i.e., generate, submit, view, cancel or reject invoice, etc.) and is specifically designed for the following purposes: · Allows all taxpayers to view and search for their respective e-Invoices; and · Provides MSMEs with the capability to issue e-Invoice and taxpayers who are not able to issue an e-Invoice on their own system. Taxpayers are required to login to MyTax Portal to utilise MyInvois Portal to perform their e-Invoice obligations in accordance with the rules and requirements outlined by IRBM.
Utilise the MyTax Portal
API allows taxpayers to submit e-Invoices directly to IRBM. Taxpayers would need to configure the API integration by setting up call-backs (specific taxpayers system addresses) and log into the available IRBM APIs via the Digital Certificate issued by IRBM (authentication mechanisms). The API configuration will be included in the SDK, which is expected to be issued in Q4 of 2023. The e-Invoice structure has been specifically designed to cater to B2B, B2G and B2C transactions to ease e-Invoice procedures for businesses and individual taxpayers. The following formats will be available for transmission of e-Invoice data:
1. Extensible Markup Language (XML): XML is defined as a simple textbased format for representing structured information. It is one of the most widely used formats for sharing field structured information today. The syntax rules for XML are strict. It will not process files that contain errors and error messages will be sent to inform that rectification is required. Almost all XML documents can be processed reliably by computer software.
2. JavaScript Object Notation (JSON): JSON is a lightweight text-based data interchange format that is simpler to read and write as compared to XML. Though it is derived from a subset of JavaScript, it is language independent. Therefore, the code for generating and parsing JSON data can be written in any other programming language.
The e-Invoicing initiative is all about improving tax processes and helping businesses grow. We understand that some small businesses might find it a bit challenging to shift from manual operations. But no worries! As a trusted & local top digital service provider in Malaysia, MC Crenergy is always here to support businesses and work with the government to keep up with the digital era and stay ahead in the digital economy.
LinkedIn : MC Crenergy | Datanory | IT Solution Provider
Updated On : 8th Aug 2023
MC Crenergy Sdn Bhd
No. 200801020316 & No. 821628A
H-5-2, Setiawalk,
Persiaran Wawasan,
Pusat Bandar Puchong 47160,
Puchong, Selangor Darul Ehsan, Malaysia
Email: info@crenergy.com.my
Contact:
(+6) 03 8600 7097 (General)
(+6) 019 277 1628 (Support)
(+6) 011 5550 8388 (Consultant)
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