As LHDNβs e-Invoice mandate approaches, itβs crucial for Malaysian businesses to ensure their invoicing systems and operations are fully compliant. Whether you’re running a small retail shop or a growing enterprise, this e-Invoice Malaysia Checklist will help you stay ahead of the curve and avoid costly mistakes.
π 1. Determine Your Implementation Phase
LHDN has announced a phased rollout of the e-Invoice system based on annual turnover. First, identify your compliance timeline:
| Annual Turnover (RM) | Mandatory Date |
|---|---|
| RM100 million and above | 1 August 2024 |
| RM25 β 99.9 million | 1 January 2025 |
| RM10 β 24.9 million | 1 May 2025 |
| RM1 β 9.9 million | 1 August 2025 |
| All taxpayers | 1 January 2026 |
β Action: Check your latest audited financial statements and identify your applicable phase.
π 2. Register on the MyInvois Portal (LHDN)
To issue and validate e-Invoices, businesses must register on the official MyInvois Portal provided by LHDN.
β Action:
Set up your business profile
Generate and manage API credentials if integrating with software
π 3. Evaluate Your Current Invoicing System
Can your existing system generate, send, and store structured e-Invoices (e.g., XML/JSON)?
β Action:
Check if your software (e.g., AutoCount, SQL, Xero) supports e-Invoicing
If not, plan for integration using a plugin or API
Consider plugins like IT Simple’s AutoCount e-Invoice API for fast compliance
π 4. Integrate with LHDN via API or Use the Portal
If you generate large volumes of invoices, automating the process is essential.
β Options:
API Integration: Automate real-time invoice validation and submission
Manual Portal Upload: Suitable for low volume invoicing
β Action: Work with your software vendor to ensure seamless API integration and test connectivity with LHDN
π 5. Train Your Team
Everyone involved in HR, Sales, Accounting, Procurement and Operations needs to understand the new process.
β Action:
Conduct a briefing or workshop on how to issue e-Invoices
Prepare SOPs for invoice creation, validation, and corrections
π 6. Update Invoice Templates and Data Requirements
e-Invoice requires specific fields to be valid (e.g., buyer TIN, invoice type, UUID, MSIC and classification codes).
β Action:
Modify invoice templates to include LHDN-required fields
Ensure customer databases are updated with Tax Identification Numbers (TINs)
π 7. Plan for Invoice Correction, Cancellation, and Rejection
Mistakes happen β make sure your process accounts for that.
β Action:
Set up workflows to handle invoice rejections from LHDN
Train staff on how to cancel or reissue a validated e-Invoice
π 8. Ensure Digital Storage and Audit Readiness
LHDN mandates that all e-Invoices be securely stored and auditable.
β Action:
Implement secure digital storage (cloud or on-premise)
Maintain audit logs, timestamps, and backup routines
π 9. Run a Test Before Go-Live
Before your mandatory phase starts, simulate your invoicing process end-to-end.
β Action:
Create test invoices in a sandbox environment
Validate with LHDN
Resolve any issues early
π 10. Stay Updated with LHDN Announcements
The e-Invoice framework may evolve β stay informed.
β Action:
Bookmark https://www.hasil.gov.my
Join webinars or newsletters from trusted accounting bodies
