Malaysia’s new e-Invoicing regulations: What Malaysian Rezerv users should know

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The Malaysian government is taking a bold step toward modernizing its tax system with the introduction of mandatory e-Invoicing. This initiative is part of the broader MyInvois program led by the Inland Revenue Board of Malaysia (IRBM) to enhance tax compliance, streamline business processes, and ensure greater transparency in financial reporting.

e-Invoicing will be rolled out in phases, beginning with larger businesses on August 1, 2024, before expanding to include all businesses with an annual turnover above RM150,000 by July 1, 2025. This means businesses across Malaysia need to gear up and integrate their operations with the new system to stay compliant.

For businesses using Rezerv, this transition will be seamless. Our platform is evolving to support Malaysia’s e-Invoicing requirements, helping business owners navigate these changes with ease. This article will cover everything you need to know about e-Invoicing in Malaysia and the updates coming to Rezerv’s business portal to ensure compliance.

What is e-Invoicing?

e-Invoicing, or electronic invoicing, is a system where invoices are created, shared, and validated in a digital format, ensuring compliance with standardized government regulations. Unlike traditional invoices, e-invoices are transmitted in real-time to the Malaysian government’s MyInvois portal for validation and recordkeeping. This makes e-Invoicing a more transparent and efficient approach to managing transactions.

An e-Invoice serves as a digital record of a transaction between a seller (supplier) and a buyer (purchaser). It contains essential information such as seller and buyer details, item descriptions, quantities, prices, tax breakdowns, payment details, and the total amount. Once validated through the MyInvois portal, the e-Invoice is assigned a Unique Identification Number (UIN) and a QR Code, making it easy to verify online.

Key features of e-Invoicing in Malaysia:

• Real-time submission and validation through the MyInvois portal.
• Inclusion of a UIN and QR Code for secure and instant verification.

Key dates to temember:

• August 1, 2024: Businesses with an annual turnover exceeding RM100 million must begin issuing e-Invoices.
• January 1, 2025: e-Invoicing extends to businesses with an annual turnover of more than RM25 million.
• July 1, 2025: All businesses with a turnover above RM150,000 are required to comply.

This phased rollout aims to help businesses adapt gradually to the new system. At Rezerv, we’re committed to making this transition simple and effective by integrating e-Invoicing features directly into our platform.

Rezerv’s upcoming changes to support e-Invoicing

To support the Malaysian government’s new e-invoicing mandate, Rezerv is introducing several updates to ensure our platform is fully compliant with the latest regulations. Here’s what’s coming:

A. For subscription payments between Rezerv and business owners

Rezerv is introducing a new invoice format for subscription payments made between Rezerv and business owners. This updated format will include all required fields specified by the MyInvois system, along with a QR code and Unique Identification Number (UIN) generated by the MyInvois portal.

Here’s how it will work:

• Business owners can access the new e-invoice format through the Settings > Billing page on the Rezerv business portal.
• Rezerv will handle the submission of each e-invoice to the MyInvois portal via an API integration for validation before making it available to download.
• Once validated, business owners will be able to download the e-invoice with the embedded QR code for their records or tax reporting needs.

B. For monthly statements of account

To help business owners ensure their tax reports comply with Malaysia’s e-invoicing regulations, Rezerv is introducing updates to its Monthly Statement format.

These updates include:

• Monthly Statements of Account will now follow the updated e-invoice format, ensuring they meet the regulatory standards set by the Malaysian government.
• Business owners can download their monthly statements in XML, JSON format from the Settings > Monthly Statement of Account page.
• Business owners can now upload this XML file for revenue reporting purposes via MyInvois portal.
• We do not automatically submit this as some business owners are using their own accounting software to do this.

Figure 1 - Example of consolidated e-Invoice in XML format

Figure 2 – Example of consolidated e-Invoice in JSON format

C. For transactions between business owners and customers

Rezerv is also introducing new features to help business owners handle e-invoicing for their transactions with customers. While Malaysian businesses (e-Commerce based) are not required to issue e-invoices to customers unless specifically requested, Rezerv makes it easy to fulfill such requests when they arise.

Here’s how it works:

• Generate e-Invoices: If a customer requests an e-invoice, business owners can navigate to the Customer Transaction page, where a new “Generate e-Invoice” button will be available. This feature allows business owners to create an e-invoice for a specific transaction.
• Let Rezerv handle the validation: When generating the e-Invoice, Rezerv will use an API to submit the invoice details to the MyInvois portal. Once validated, the invoice will include a Unique Identification Number (UIN) and a QR code, ensuring it complies with Malaysia’s e-invoicing standards.
• Send to customers: After generating the e-Invoice, business owners can share it directly with the customer

Figure 3 – Example of visual presentation of validated e-Invoice in statement form (in PDF format)

The e-Invoice features outlined above will be launched on Rezerv by June 2025, ensuring all businesses comply with the new regulations by July 2025.

For more details on Malaysia’s e-invoicing requirements and how Rezerv supports these changes, refer to the provided PDF document (pages 104–106). These pages outline additional guidelines, including categorizing Rezerv as an e-commerce platform under the new regulations.

If you have any questions or need further clarification, our team is always ready to assist.