Personal Finance Term
e-Invoicing
LHDN's system requiring businesses to issue invoices in a standard digital format that is validated by the tax authority in near real-time. It is being rolled out to Malaysian businesses in phases by revenue size.
Under e-invoicing, a seller submits each invoice to LHDN's MyInvois platform (or via an approved service provider), where it is validated and given a unique identifier and QR code before being shared with the buyer. The aim is to improve tax compliance and reduce manual reporting and fraud. The rollout is staged — the largest businesses first, with smaller businesses and the self-employed brought in over later phases — so the date it affects you depends on your annual turnover.
For most salaried individuals there is nothing to do, but freelancers, sole proprietors, and small business owners need to understand when they fall in scope and how to issue compliant e-invoices, including consolidated e-invoices for transactions with consumers who do not need one. If you run any side business, check your phase date early and set up your invoicing process before it becomes mandatory for you.