Menu
Unleash your potential, experience the power of FAV365 Accounting Solutions.
Get your FREE instant access to watch the demo!
The digital transformation of Malaysia’s tax system is now in progress, and businesses across the country must begin preparing for the mandatory implementation of e-Invoicing. This change, led by the Inland Revenue Board of Malaysia (LHDN), aims to create a more transparent and efficient way of managing business transactions. e-Invoicing being launched on 1 August 2024, all the businesses in Malaysia are required to comply this latest regulations and requirement from Malaysia Government and LHDN based on 4 different timelines.
As a professional software development company – MC Crenergy, we share the responsibility with the Malaysian government as the official digital solutions partner appointed by the government agency Malaysia Digital Economy Corporation (MDEC) to assist local businesses in implementing e-invoicing smoothly and on time.
Therefore, businesses need to receive proper training and understand on how to implement e-invoicing. Additionally, finance team must know how to use the right accounting tools to manage the process and implementation. As one of the professional providers of cloud accounting software in Malaysia, we will share as much of latest information and guidance as possible to businesses to follow the appropriate cloud accounting software such as (FAV365) which is designed to support the upcoming e-invoicing requirements in a user-friendly and practical manner for a smooth implementation. First of all, let’s delve into eInvoice deeper here.
✓ Understanding What is e-Invoice
✓ Why Businesses Should Embrace e-Invoice
✓ Malaysia’s e-Invoice Framework and How It Works
✓ Timeline for eInvoicing Implementation
✓ Introducing the MyInvois Portal & Cloud Accounting Software
✓ Common Questions About e-Invoice in Malaysia
✓ Industry-Specific e-Invoice Guidance
✓ eInvoice Training & Summary
Solving Accounting Challenges With FAV365 Cloud Accounting System
e-Invoice is an electronic/ digital document that replaces the traditional paper like Excel / PDF invoice, that use to record commercial transactions such as the sale of goods or services. Implementing eInvoice process, is to centralised and monitored through LHDN’s new MyInvois Portal.
eInvoice process is apply to all sectors of business transactions, whether business-to-business (B2B), business-to-consumer (B2C), or business-to-government (B2G). The objective is to improve tax reporting accuracy, reduce fraud, and enhance the overall efficiency of the tax ecosystem in Malaysia. It also helping businesses to better track their invoices to smooth up their company audit.
The adoption of e-Invoice provide benefits that go beyond just regulatory compliance. With e-Invoicing, businesses can expect faster payment cycles, reduced processing errors, and ensure accuracy of record-keeping. By eliminating manual data entry and physical paperwork, companies can streamline their invoicing process, more organising documentation, and saving both time and resources.
Moreover, the system supports real-time reporting and provides better visibility over transactions, which is important for making timely financial decisions. For companies using Online Accounting Software Malaysia like FAV365, these benefits are maximised, as the software is equipped to automate invoice creation, validation and submission invoice to MyInvois Portal without hassle.
Malaysia adopts the Continuous Transaction Control (CTC) model for its e-Invoice implementation. Under this model, every invoice must first be validated by LHDN before it can be shared with a customer. This ensures that all business transactions are reported in real time, improving transparency and tax integrity.
Businesses will have two options for issuing e-Invoices: they can either use the MyInvois Portal for manual submission or connect their accounting system via API for automated integration. While Myinvois Portal may suitable for businesses with lower transaction volumes, whereas organisations with more complex or bigger operations will benefit significantly from API-ready systems (direct integration) like FAV365, which handle high volumes with ease and precision through the automation of submitting the invoices.
Additionally, MSME with annual revenue below the threshold (RM150,000.00) are not required to issue eInvoice. And according to Section 82 of the Income Tax Act 1967, every individual who carries on a businesss Malaysia has the duty to keep proper documentation and provide the receipt. Business with annual revenue that more that RM150,000.00(sale of goods) or RM100,000 (from performance of service) is required to issue a receipt which have serial numbered for every transactions. On the other hand, businesses like supplier who supply goods or services to exempted person, it is also requires to issue eInvoice. Example of the exempted person, including Ruler & Ruling Chief like Ruler with title Raja Perempuan, Sultanah, Tengku Ampuan, Raja Permaisuri, Tengku Permaisuri, Permaisuri, Government authority, local authority, statutory authority, facilities provide by the above government authority like (Hospital & Clinics), employees or individual who is not conducting business.
There are 4 stages of rolled out timeline confirmed by LHDN for the adoption of e-Invoice across various business segments. Starting from 1 August 2024, companies with an annual turnover exceeding RM100 million must begin issuing e-Invoices. The 2nd phase begins on 1 January 2025, covering businesses with annual turnover between RM25 million to RM100 million. The 3rd & 4th batch, by 1 July 2025 with RM500 thousands to RM25 million annual turnover and follow by 1 Jan 2026 with annual turnover from RM500 thousands onwards. e-Invoicing becomes mandatory for all businesses, regardless of size or industry.
This phased rollout gives businesses ample time to prepare, seek guidance, and adopt the necessary tools. The team behind FAV365 also offers hands-on einvoice Training Malaysia & eInvoice consultation to ensure users are confident and ready ahead of the deadlines. As there will be fine or penalties to those businesses that not comply with Malaysia eInvoice Regulations, the fine will not be less than RM200 and not exceeding RM20,000 or imprisonment not exceeding 6 months or both. Therefore, to avoid the operation misconduct issue or late submission of eInvoice, it is important for business and accountants to organise their invoices and documentations while go through proper procedure of eInvoice submission, especially consolidated eInvoice. Businesses are required to complete monthly submissions for the consolidated eInvoice by the 7th of each month. Therefore, accounting software such as FAV365 is a friendly tool that allows SMEs, business owners, accounting firms or freelance accountants to properly manage and track every business transaction and also make it easier and faster to submit eInvoices to the MyInvois portal without further manual data entry work. It helps improve accuracy and facilitates businesses to keep track of all historical invoices.
The MyInvois Portal is LHDN’s official platform for e-Invoice management. Businesses able to manually issue, submit, and track their e-Invoices using MyInvois Portal. The portal is free to use and suitable for micro or small businesses with low transaction volume.
However, for businesses that deal with many transactions daily, manual entry can become a tedious and time-consuming task. Especially, not just only just the Invoices but others documents like Quotations, Purchase Order, Delivery, Inventory and etc. That is where automated systems like FAV365 truly shine. With built-in integration to the MyInvois API, FAV365 enables you to automate your process by generate and validate e-Invoices within your usual accounting workflow, eliminating double work and human error. This makes it one of the most efficient Cloud Accounting Software Malaysia options available today. FAV365 allow business to manage their full set account, General ledger, bank reconciliation, bank transfer, P&L and etc. It is not just a basic Cloud Accounting software, FAV365 also offer a full comprehensive features for business needs, including Sales Module – allows sales team to manage customers, sending sales quotations, sales orders, billings and even can automate the invoice on time, which making the billing process easier & faster for those for recurring transactions. Also, FAV365 offering the features to manage Purchase, Delivery & Inventory Modules, that allow businesses able to keep tracks on their purchase order, good received, delivery order, delivery return, stock issues, stock receive, stock adjustment, stock transfer, stock takes, stock ageing, stock balance & more! The best thing is all the modules are included and there is NO ADDITIONAL COST for business owners, unlike other accounting software in Malaysia which are expensive and require additional subscription for each module with different fees charged by the service provider.
There are many SMEs businesses often asking whether e-Invoicing is optional. The answer is Yes, all taxpayers, including MSMEs SMEs & MNCs in Malaysia, are required to comply with e-invoicing regulations, with the confirmed phased implementation timelines. Any business falls under the mandatory phase, the organisation have to implement e-Invoicing and validated by LHDN are considered legitimate for tax and audit purposes.
Another common concern is whether existing PDF or paper-based invoices can still be used. Unfortunately, the traditional invoice format will no longer be accepted once e-Invoice is fully enforced. This is why adopting a system like FAV365, an Online Accounting Software Malaysia that’s e-Invoice-ready, is a proactive and wise choice! Also, it is important for business owner to choose a Accounting Software which is sync & updates with LHDN or MyInvois Portal from time to time, to prevent missing out the latest requirement needed and causing penalties.
Malaysian businesses should provide the information based on eInvoices standard requirement. There are total 55 fields, 35 mandatory fields and 20 optional fields, which including details of parties, invoice specifics, and tax-related information. Can refer the explanation & details here (Page 43 – 51). Hence, Cloud Accounting Software that direct integrated with MyInvois System in real time will be the better choice for accountants and finance team!
Different industries have unique workflows, and LHDN has addressed this through specific scenarios in its e-Invoice guideline. For example, retail businesses using POS systems can integrate them with accounting software to issue invoices at the point of sale. However, that will be more easier process for retail businesses by using FAV365 POS solutions, it is a one-stop solutions for retail businesses to streamline their operational processes and sales activities into FAV365 Accounting, that can automatically sync POS activities into the FAV365 accounting system, eliminating the need for duplication of effort or manual entry. Additionally, organisation can save more time and reduce data errors while transferring outlets POS data into accounting system by any third-party POS system. On the other hand, some industry might issue invoices upon completion of a job or at the end of a billing cycle.
For freelancers, small traders, and gig workers, LHDN allows simplified access through the MyInvois Portal, but there will be more advantage if they enrolled with a proper accounting solutions like FAV365 packages. Mid-tiers or larger companies with internal ERP systems or high-volume billing needs can utilise FAV365’s full-featured platform to integrate and scale effectively. No matter your industry, the FAV365 team is ready to provide einvoice Training Malaysia tailored to any sector’s requirements.
Additionally, some businesses practise of using Proforma Invoice before customers making any confirmation of the goods or services from the seller. Therefore, some business owners are asking do Proforma Invoices required to submit as e-Invoice? The answer is NO, Proforma Invoices do NOT need to be submitted as e-Invoices under Malaysia’s e-Invoicing requirements. It is because Proforma Invoice is a preliminary document that issued to customer before a sale is confirmed, often used to declare the intent to deliver goods or services, especially in international trade. It does not represent an actual sale or payment obligation, and hence is not a valid tax invoice or commercial invoice under LHDN’s (IRBM) e-Invoice guidelines. Only official invoice are required to be submitted as eInvoice when sale is confirmed with specific items indicated in the official invoice that selling to customers.
Other than Sales or Tax invoices must submit as eInvoice, these transaction types of documents are required to submit as well? According to LHDN, you must submit e-Invoices for these transaction types, including credit notes / debit notes, self-billed invoices (either for overseas suppliers or other business model, example ecommerce platform), and also the documents that represent actual supply of goods/services or payment. Refer to some explanation of self-billed invoices, this information will be useful for those organisation that dealing with oversea business. A self-billed e-Invoice is an electronic invoice that the buyer (Malaysian business) generates on behalf of the supplier (overseas entity) to document the purchase of goods or services, it is because foreign company/ supplier may not have the access to Malaysia MyInvois Portal. Therefore, if Malaysia companies are engaging with overseas suppliers who are not registered within the country, local businesses are required to issue self-billed e-Invoices to document such transactions for tax purposes and also ensures that expenses related to foreign purchasing are properly recorded and substantiated. There are some required details of Suppliers in order to issue a self billed eInvoice, such as Supplier’s Name, Supplier’s Tax Supplier’s Address, Details of the goods or services provided, Identification Number (TIN), if the supplier TIN, the company can may input “NA” in the respective fields. Whereby FAV365 has done a perfect design in the system for all the required fields. Also, the advantage of using FAV365, it is super convenient for local business that dealing with global business, as FAV365 are supporting multi-currency invoicing, including export business.
As Malaysia moves forward with the nationwide adoption of e-Invoicing, all local businesses must comply with government regulations and be fully prepared for this digital shift. Many organisations may find these change are very complex at first, but with the right accounting tools and guidance, it can actually become an opportunity to streamline operations, improve accuracy, and reduce paperwork and tax-related errors.
The use of cloud-based solutions is becoming increasingly important and common, especially for companies that deal with high transaction volumes and also operate across multiple departments. This is where FAV365 truly makes a difference. As one of the most complete and affordable cloud accounting software in Malaysia, FAV365 empowers businesses to automate their full accounting cycle, from invoicing to delivery, purchase, inventory, and financial reporting, all in one solutions. Its direct integration with the LHDN MyInvois portal enables users to issue and submit e-Invoices in real-time, avoiding double entry and reducing the risk of penalties due to error & late submission.
Malaysian businesses also need to have to right knowledge to apply the process together with the right system. Understanding when and how to issue e-Invoices, what supporting documents are required, and how to manage consolidated invoices or self-billed invoices are all part of the process. That’s why we’ve designed our eInvoice Training Malaysia program to help business owners, accountants, and finance teams to smooth their implementation process and MC Crenergy also conducted eInvoice Onboard Training for FREE for the batch 3 businesses. Therefore, whether you’re already using an online accounting software in Malaysia or still relying on manual processes, this training will provide you with the practical know-how to make the switch confidently. MC Crenergy team will guide you through real-life scenarios, answer your questions, and sharing the easiest way with FAV365 to simplifies e-Invoice compliance across various industries.
REMEMBER no one is happy to getting a fines. Thus, organisation must speed up their invoicing implementation processes to familiar the practise and prepare the future-proof their business operations, now is the time to act. Last but not least, here with the Sign Up links to register the Free e-Invoicing Onboard Training and take the first step towards smoother operations and digital compliance. Let FAV365 and our dedicated support team help you lead your business into the next generation of accounting — Simple, Smart, and Scalable.
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)
Every business has its own culture, procedure, and processes; there is no one-size-fits-all software in the market to fit all unique needs and requirements without compromising on results.
By knowing what clients are facing, their challenges, requirements and expectations, we are able to deliver a tailored-fit, customized solution with a higher success rate, shorter adaptation period, and greater flexibility.
MC Crenergy has the experience and expertise to customize technology that empowers client’s operations. A customized solution that fits client’s needs perfectly, reducing friction and resistance, while promoting greater success in adaptation & business performance.
