Malaysia CTC e-invoice Reporting
Since August 2024, e-invoicing in Malaysia has been mandatory for taxpayers with an annual turnover or revenue of more than RM100 million (~€20 million).
The mandate follows the continuous transaction control (CTC) model and requires e-invoices to be validated by the country’s tax authority, as well as electronic reporting of certain transactions.
The rollout to all other taxpayers undertaking commercial activities in Malaysia is ongoing, with full implementation targeted for July 2026.
Read on for an overview of Malaysia e-invoicing requirements and bookmark this page to stay updated with the latest mandate developments.
Malaysia e-invoicing adopts a continuous transaction control (CTC) approach. E-invoices must be submitted and cleared via MyInvois, the e-invoicing portal of the Inland Revenue Board of Malaysia (IRBM), known as MyInvois platform.
The IRBM requires mandatory e-invoicing for key sectors, while implementing a phased revenue-based approach through the MyInvois platform. Since August 2024, Malaysian taxpayers with an annual turnover or revenue of more than RM100 million have been required to submit and clear e-invoices for the above transactions.
Sectors in the scope of mandatory e-invoicing include:
- Automative
- Aviation
- Luxury goods and jewellery
- Construction
- Licensed betting and gaming
- Payments to agents, dealers and distributors
- Any single transaction exceeding RM10,000 (approx. 2,000 euros) (effective 1 January 2026)
- Electricity (effective 1 January 2026)
- Telecommunications (effective 1 January 2026)
For transactions not in the scope of mandatory e-invoicing and the buyer does not request an e-invoice to be issued, the IRBM allows businesses to submit consolidated e-invoices on a monthly basis, with suppliers required to aggregate transactions and submit these within seven calendar days after month-end through the MyInvois portal.
For cross-border transactions, Malaysian taxpayers must issue a self-billed e-invoice to document the expense, but foreign parties do not need to implement the Malaysian e-invoicing system.
B2G e-invoicing in Malaysia
Malaysia introduced mandatory B2G e-invoicing at the same time as the obligation came into effect for B2B transactions. This means that taxpayers supplying public bodies must issue compliant electronic invoices.
These e-invoices must be formatted in XML or JSON and processed via the MyInvois portal. They must be secured with an electronic signature that utilises a local certificate.
The use of Peppol in Malaysia
Malaysia was an early adopter of Peppol in terms of international adoption.
Peppol is a pan-European e-invoicing initiative and the Malaysian Digital Economy Corporation (MDEC) spearheaded the framework’s adoption as part of the country’s drive towards mandating e-invoicing.
Malaysia aligned its e-invoicing standards with Peppol’s framework and standards to help push B2B transactions towards digitisation. As a result, taxpayers
Learn more about Peppol e-invoicing.
Timeline of e-invoicing adoption in Malaysia
- 2015: Malaysia introduces voluntary e-invoicing
- October 2022:The Malaysian Ministry of Finance announces plans for e-invoicing pilot program for select taxpayers
- November 2023:Mandatory e-invoicing implementation timeline is delayed to August 2024
- February 2024: Inland Revenue Malaysia publishes Software Development Kit and e-invoicing guidelines
- August 2024:Mandatory e-invoicing and clearance in Malaysia for taxpayers with an annual turnover or revenue of more than RM100 million (approx. 20 million euros)
- January 2025: Mandatory e-invoicing for taxpayers with an annual turnover or revenue between RM25 million (approx. 5 million euros) and RM100 million
- July 2025: Mandatory e-invoicing for taxpayers with an annual turnover or revenue between RM5 million (approx. 1 million euros) to RM25 million (approx. 5 million euros)
- January 2026: Mandatory e-invoicing for taxpayers with an annual turnover or revenue between RM1 million (approx. 200 thousand euros) to RM5 million (approx. 1 million euros)
- July 2026: Mandatory e-invoicing for taxpayers with an annual turnover or revenue up to RM1 million (approx. 200 thousand euros)
Taxpayers with an annual turnover or revenue below RM500,000 (approx. 100 thousand euros) are exempt from mandatory e-invoicing requirements.
For the latest updates and an in-depth timeline, bookmark our Malaysia e-invoicing system blog.
Setting up e-invoicing in Malaysia with Sovos
Malaysia’s e-invoicing mandate allows submission of e-invoices via a third-party API. Sovos’ e-invoice and e-reporting compliance solutions are suitable for Malaysia and other international tax requirements.
It’s hard to stay on top of tax and e-invoicing requirements, especially when your organisation operates in many countries. That is where Sovos comes in. Your compliance is our business; let us take care of your tax obligations—especially as rules and regulations evolve—so you can focus on growth.
Complete the form below to speak with one of our e-invoicing experts
FAQ
Is e-invoicing mandatory in Malaysia?
E-invoicing has been mandatory for certain transactions for specific taxpayers since August 2024. The rollout to all other taxpayers undertaking commercial activities in Malaysia is ongoing, and full implementation is targeted for completion by July 2026.
Is e-reporting mandatory in Malaysia?
There is a consolidated e-invoice requirement for transactions where e-invoicing is not mandatory, and the buyer does not request an e-invoice to be issued. Taxpayers must aggregate all invoices and receipts issued and issue a consolidated e-invoice via the MyInvois, on a monthly basis (within seven days from the month end).
Should I use e-invoicing in Malaysia?
The Malaysian government is gradually introducing this requirement across different taxpayer groups. All businesses conducting commercial activities in Malaysia should identify which implementation phase applies to their organisation. The rollout to all remaining taxpayers is progressing, with complete implementation targeted for completion by July 2026.
What is the e-invoicing authority in Malaysia?
The Inland Revenue Board of Malaysia (IRBM) is the country’s e-invoicing authority. It is responsible for the MyInvois Portal, the platform used to submit, clear and validate e-invoices in the country.
How will businesses use e-invoicing in Malaysia?
Taxpayers within scope of the e-invoicing mandate submit documents via the country’s MyInvois Portal for validation, before sharing with the buyer. The real-time e-invoicing process saves time and resources for businesses and facilitates cross-border and international trade.
Where else is e-invoicing available in Asia-Pacific?
Malaysia is one of many countries in Asia Pacific to adopt e-invoicing including China, South Korea, Singapore, Japan and the Philippines.
Is Sovos certified as a Peppol Service Provider by the Malaysia Digital Economy Corporation (MDEC)?
Yes, Sovos has been granted accreditation as a Peppol Service Provider by the Malaysia Digital Economy Corporation (MDEC). We are authorised to register end-user participants in Malaysia Service Metadata Publisher (SMP).
Peppol Service Providers, or Peppol Access Points (APs), are tasked with establishing and managing the connectivity gateways that serve as access nodes within the e-invoicing network. They ensure compliance with Peppol standards, facilitate the routing of e-invoices to the appropriate destination APs and handle the registration and updating of participant information in the Malaysia SMP.
