Malaysia’s E-Invoicing Mandate – What You Need to Know and How NOVA Simplifies Compliance

The new year brings significant changes to the business landscape in Malaysia with the second phase of the e-invoicing mandate now in effect. As of January 1, 2025, mid-sized businesses with annual turnovers between MYR 25 million (~$5 million) and MYR 100 million are required to adopt the MyInvois e-invoicing platform. This follows the first wave in August 2024, which applied to large enterprises.

Understanding the E-Invoicing Mandate

Malaysia’s e-invoicing mandate, spearheaded by the nland Revenue Board of Malaysia (LHDN), introduces a Continuous Transaction Control (CTC) model. Under this system:

• E-invoices are submitted to the MyInvois portal for pre-clearance in XML or JSON formats via APIs.
• Approved invoices are issued a Certification Serial Number before being sent to customers.
• Businesses can automate this process through ERP integrations, streamlining compliance and reducing manual errors.

The transition began with a soft launch phase in 2024 for large taxpayers, allowing them to test the system without penalties until February 2025. This approach aims to ensure a smooth rollout for mid-sized businesses now joining the mandate and the broader implementation slated for July 2025 for all other taxpayers.

Why E-Invoicing Matters

E-invoicing offers businesses an opportunity to digitize their tax administration processes, ensuring:

• Compliance with regulatory requirements.
• Increased efficiency by reducing manual invoicing and streamlining workflows.
• Enhanced transparency with accurate audit trails and real-time reporting.

This is part of Malaysia’s broader effort to modernize its tax system and align with global trends in digital tax reporting.

NOVA’s E-Invoicing Solution: Automate and Integrate with Ease

For sell-side stockbrokers and investment banks, adapting to the e-invoicing mandate can be challenging without the right tools. NOVA’s e-invoicing solution simplifies compliance by seamlessly integrating with your existing platforms and connecting directly to the MyInvois system via APIs.

Key benefits of NOVA’s solution include:

• End-to-end Automation: Eliminate manual processes by automating invoice submission, pre-clearance, and approval.
• Seamless Integration: Compatible with your current platforms, minimizing disruption to your operations.
• Audit-Ready: Maintain a comprehensive and accurate audit trail for all transactions.
• Regulatory Compliance: Stay ahead of regulatory deadlines with robust features designed to meet MyInvois requirements.

Whether you’re just beginning your e-invoicing journey or looking for a more efficient solution, NOVA ensures your transition is hassle-free and future-ready.

Explore how NOVA’s solution can help you comply with Malaysia’s e-invoicing mandate while optimizing your operations. Learn more about our e-invoicing solution here.

Looking Ahead

As the mandate progresses, businesses across Malaysia are embracing this shift to digitization. By automating invoicing and compliance processes, organizations can focus on growth and innovation while staying aligned with regulatory requirements.

At NOVA, we’re here to help you every step of the way. Contact us to learn how our e-invoicing solution can transform your compliance journey.