Go Digital with
E-Invoicing in Malaysia
Automate your business and save time with SESAMi’s e-invoicing solutions. Connect directly to LHDN and issue electronic invoices to all your customers.
Is your Business Ready for E-Invoicing?
The Inland Revenue Board of Malaysia (LHDN) will gradually introduce country-wide mandatory electronic invoicing in Malaysia that will cover B2G, B2B, and B2C transactions. This initiative by LHDN marks a significant step towards digitization and modernization of the invoicing process in the country. The Malaysian Digital Economy Corporation (MDEC), serving as an established Peppol Authority, will introduce Peppol e-invoicing for all businesses across the country from August 2024 to July 2025.
IMPLEMENTATION TIMELINE
1 August 2024
Taxpayers with annual turnover or
revenue > RM100 million.
1 January 2025
Taxpayers with annual turnover or
revenue > RM25 million, up to RM100 million.
1 July 2025
Taxpayers with annual turnover
or revenue > RM500,000, up to RM25 million.
1 January 2026
Taxpayers with annual turnover or
revenue of up to RM500,000.
Benefits of E-Invoicing
This requirement will not only streamline financial processes but also enhance transparency and efficiency. Businesses and consumers alike will benefit from the ease of electronic invoicing, reducing paperwork and facilitating faster transactions. This move aligns Malaysia with global trends in digital transformation and sets the stage for a more seamless and interconnected economic landscape.
Unifying invoicing processes through submission of transaction documents & data electronically
Seamless system integration for efficient and accurate tax reporting
Enhanced efficiency, and significant time and cost savings
Aligns financial reporting and processes to be digitalized with industry standards
WHY SESAMi?
E-Invoice Transactions
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Frequently Asked Questions
1. What is an e-Invoice?
An e-invoice is a document generated in the prescribed format by the LHDN, enabling automatic processing by a relevant system. It acts as a digital confirmation of a transaction between a seller and a buyer.
2. What is LHDN?
LHDN stands for Lembaga Hasil Dalam Negeri, the Inland Revenue Board of Malaysia. It is the government agency responsible for administering, assessing, collecting and enforcing payment of various taxes in Malaysia, including personal income tax, corporate tax, and goods and services tax, among others. LHDN plays a crucial role in Malaysia’s fiscal policy and tax administration, ensuring compliance with tax laws and regulations.
3. What is MDEC?
MDEC, the Malaysia Digital Economy Corporation, is a government agency under the purview of the Ministry of Communications and Multimedia Malaysia. MDEC focuses on driving digital transformation, adoption, and innovation within the country. Its initiatives aim to foster growth in digital technology sectors, encourage investment in digital businesses and enhance Malaysia’s role as a global player in the digital economy.
4. What is Peppol?
Peppol stands for Pan-European Public Procurement On-Line, which is a framework to send and receive e-invoices. Peppol was created by the organisation OpenPeppol to standardise the exchange of common procurement documents such as eOrders and eInvoices.
5. What type of documents are included in the e-invoicing mandate?
The following documents fall under the scope of Malaysia’s e-invoicing mandate:
- Complete e-invoice
- Credit note
- Debit note
- Refund e-invoice
- Self-billed e-invoice
- Self-billed credit note
- Self-billed debit note
- Self-billed refund note
6. What types of transactions fall under the mandate?
The mandate covers all transactions within the provision of goods and services and certain non-business transactions between individuals.
7. Does my buyer or supplier need to be on SESAMi for me to use e-Invoicing with them?
No, as long as both companies are using e-Invoicing with a Peppol ID. You may send and receive e-invoices from any company with a Peppol ID regardless of their service provider.
8. How can I get started with e-Invoicing?
Reach out to us at InvoiceNow@sesami.com to register your interest or find out more!
SESAMi Peppol Connect
Free for one year for up to 10,000 invoices/year. Afterwhich, RM200/year per user licence fee and RM0.05/invoice.
Get in touch!
SESAMi provides solutions to optimise your invoicing processes and comply with the latest requirements set by LHDN. Our solution enables automated invoice generation, approval, and submission to tax authorities.
+6016-233 8740 (Dr. Kelly)