Introduction
With Malaysia set to implement mandatory e-invoicing for all taxpayers by 1 January 2027, companies across the nation are racing to understand what e-invoicing is, how it works, and which solutions are best suited to their needs. The Inland Revenue Board of Malaysia (LHDN) has announced a phased approach starting 1 August 2024 for large taxpayers, making it crucial for businesses of all sizes to prepare early.
In this article, we’ll explore everything you need to know about e-invoicing solutions in Malaysia — from how they work to the top software providers, pricing, legal compliance, and key implementation steps.
What is E-Invoicing?
E-invoicing refers to the digital exchange of invoice data between businesses and tax authorities using a standardized format. Unlike a PDF or paper invoice, e-invoices are structured data files that can be automatically validated, processed, and stored.
In Malaysia, all e-invoices must be submitted to the LHDN’s MyInvois system, powered by Peppol (Pan-European Public Procurement OnLine) protocols, before being delivered to recipients.
Why Is Malaysia Implementing E-Invoicing?
The Malaysian government is moving toward e-invoicing to:
- Curb tax evasion
- Increase transparency
- Automate compliance and audits
- Streamline business processes
- Improve national tax collection efficiency
Mandatory adoption is a key part of Malaysia’s Digital Economy Blueprint (MyDIGITAL).
E-Invoicing Implementation Timeline
| Taxpayer Category | Annual Revenue | Implementation Date |
| Large Taxpayers | > RM100 million | 1 August 2024 |
| Medium Taxpayers | RM25M – RM100M | 1 January 2025 |
| Small Taxpayers | RM1M – RM25M | 1 July 2025 |
| All Businesses | < RM1 million | 1 January 2027 |
Key Features of E-Invoicing in Malaysia
- Real-Time Submission: Invoices must be submitted to LHDN before being shared with buyers.
- Validation Mechanism: LHDN will return a validated invoice with a unique identification number (UUID) and QR code.
- Structured Data Format: Must follow Peppol BIS Billing 3.0 standards (XML format).
- Digital Signature: All e-invoices must be digitally signed by the issuer.
- Retention Rules: Businesses must retain invoice data for at least 7 years.
Who Needs E-Invoicing Solutions?
If you fall into any of the following categories, you need to implement an e-invoicing solution before your scheduled date:
- Sdn Bhd companies
- Enterprise & SME businesses
- Freelancers & consultants
- Cross-border sellers
- Companies applying for tax incentives or government grants
Benefits of E-Invoicing Solutions in Malaysia
Implementing a proper e-invoicing solution can bring numerous advantages:
1. Automated Compliance
Reduce the risk of penalties by submitting invoices that are fully compliant with LHDN standards.
2. Faster Payment Cycles
E-invoices allow for faster delivery, validation, and approval, reducing payment delays.
3. Improved Record-Keeping
Digital systems help you store, search, and retrieve invoices instantly — critical for audits.
4. Error Reduction
Eliminates manual data entry and human errors in invoicing.
5. Cost Savings
Reduce paper, printing, and mailing costs.
Choosing the Right E-Invoicing Solution in Malaysia
Here are 6 factors to consider when selecting an e-invoicing solution:
1. LHDN-Approved Peppol Access Point
Ensure your provider is recognized by MDEC and LHDN to transmit invoices via Peppol.
2. Integration with Existing Software
Look for e-invoicing platforms that integrate with accounting tax tools like Xero, SQL, QuickBooks, or AutoCount.
3. Ease of Use
A simple, user-friendly dashboard is essential, especially for SMEs and startups.
4. Cloud-Based Access
Cloud solutions allow remote access and easier collaboration.
5. Customer Support
Reliable onboarding and post-sale support are vital, especially during the transition.
6. Security
Ensure end-to-end encryption and adherence to data protection laws.
Top E-Invoicing Solutions in Malaysia (2025)
Here are some of the most reliable options:
1. GoSenang
An affordable, all-in-one digital compliance provider offering:
- Peppol-compliant e-invoicing
- Company formation registration
- Online accounting & taxation planning Malaysia filing
- Monthly pricing: From RM49/month
2. SQL e-Invoicing
Popular among SMEs and accountants:
- Local accounting system with e-invoice support
- Offline & cloud hybrid
- Customizable formats
3. AutoCount Cloud
- Known for its strong integration with POS and accounting
- Offers e-invoicing API
- Suited for medium to large businesses
4. Xero + StoreHub
- Integrates cloud accounting (Xero) with POS (StoreHub)
- Excellent for retail or F&B businesses
- International support
5. InvoiceNow (via Peppol)
- Government-endorsed platform
- Interoperable with regional partners (e.g. Singapore)
How to Implement E-Invoicing in Your Business
Follow these 6 steps:
Step 1: Assess Your Readiness
Determine your annual revenue to check your implementation deadline. Review existing invoice and accounting workflows.
Step 2: Choose an E-Invoicing Solution
Evaluate and onboard a service provider that’s Peppol-compliant and suited to your industry.
Step 3: Register with MyInvois Portal
Sign up with LHDN’s MyInvois Portal. If using a software vendor, this may be done automatically.
Step 4: Staff Training
Educate your finance and sales team about the changes and how to use the new system.
Step 5: Test and Validate
Do pilot runs with actual invoices and ensure LHDN validation processes are working.
Step 6: Go Live
Start using e-invoices for all transactions by your designated deadline.
Common Challenges and How to Overcome Them
| Challenge | Solution |
| Lack of IT knowledge | Choose a vendor with strong onboarding support |
| Data migration from old systems | Use hybrid systems with import/export features |
| Manual process habits | Gradually introduce automation and provide team training |
| Integrating multiple departments | Choose a cloud-based system with user access roles |
E-Invoicing for Cross-Border and International Transactions
Malaysia’s adoption of Peppol ensures your system can work across borders with countries like:
- Singapore
- Australia
- European Union
- Japan
This makes invoicing across countries easier and compliant.
Final Thoughts: Get Ready Now, Not Later
E-invoicing isn’t just a legal obligation — it’s an opportunity to modernize your business, reduce costs, and improve efficiency. Companies that start early will enjoy smoother transitions and avoid the last-minute scramble.
Call to Action
If you’re a business owner, accountant, or SME manager — now is the time to act. Explore Malaysia’s top e-invoicing solutions and start preparing today.
Want a plug-and-play solution?
✅ Try GoSenang – Malaysia’s trusted one-stop shop for e-invoicing, tax filing, and more.
💼 Visit gosenang.com to schedule a free demo.
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