Mandatory E-Invoicing in Malaysia: what you need to do

As a small business owner, you must follow new rules for how to invoice your customers. The Inland Revenue Board of Malaysia (IRBM) is rolling out a national initiative requiring businesses to adopt electronic invoicing and report transactions. Your deadline depends on your turnover.

Instant invoicing.

Two hands fist bump through a device to show that eInvoicing is instant, direct and electronic.

What is E-Invoicing?

E-Invoicing is a structured way to send invoices in a digital format – streamlining the process and encouraging faster payments. The Malaysian government is phasing in a mandatory E-Invoicing initiative, which asks businesses to report their financial transactions to IRBM.

A small business owner checks their Xero account and uses their laptop to send an e-invoice.

All small businesses must comply by set dates

Check out this timeline for your deadline to implement E-Invoicing, and requirements you’ll need to follow.

E-Invoicing uses the Peppol network

Send your invoices between accounting systems via Peppol’s secure global public network rather than by email.

Xero helps you follow E-Invoicing guidelines

Register for electronic invoicing in Xero and let the clever automations handle the data entry for you.

Xero has strong E-Invoicing experience

Trust Xero as one of the largest international E-Invoicing providers, supporting 450,000 global customers.

Who needs to follow the E-Invoicing rules?

The government’s rules apply to all businesses across Malaysia. E-Invoicing and monthly reporting to IRBM will soon be your new normal – a faster, more secure way to handle your billing. Make sure to familiarise yourself with what E-Invoicing means for your small business.

Here are LHDN’s full E-Invoicing in Malaysia guidelines (PDF)
Two small business owners using Xero as their E-Invoicing software

Your timeline to introduce E-Invoicing

The government is rolling out E-Invoicing in phases based on your business turnover. If your annual turnover is between RM500,000 and RM25 million, you have until 1 July 2025 to switch to electronic invoices, for example. You’ll then have a 6-month ‘relaxation period’ with slightly different rules:

  • Included
    You won’t need to issue individual E-Invoices during this initial 6 months
  • Included
    Instead, you can issue consolidated E-Invoices for all your business transactions and activities
  • Included
    This gives you time to prepare for your full E-Invoicing implementation
Check out the full E-Invoicing timeline
Xero has e-invoicing built in, so you’re ready to send e-invoices to the government departments you do business with.

Benefits of E-Invoicing for Malaysian businesses

Why the change in process? The old system of sending invoices by email – or in the post – is replaced with electronic invoices, giving you more accuracy and security when it comes to billing. E-Invoicing:

  • Included
    Saves time filing with IRBM
  • Included
    Makes it easy to stay compliant
  • Included
    Digitises your tax and financial reporting
Read more about how E-Invoicing helps your business.
A cafe owner sends an eInvoice from their laptop.

Master your electronic invoicing with Xero

It’s easy to follow government rules with Xero software. Instead of using the MyInvois portal each time, let Xero automate the data entry and save yourself precious hours on your admin. Xero is a certified Peppol service provider that’s accredited by MDEC. And it’s simple to get started!

Here’s how to set up E-Invoicing with Xero (PDF)
The Bills screen in Xero shows a list of bills, including e-invoices received as draft bills ready to be approved and paid.

Keep growing with Xero’s accounting software

Introduce E-Invoicing and grow your business with confidence. Xero’s accounting software supports your goals, whether it’s strengthening your billing process, streamlining your payroll admin, or understanding your financials with in-depth customised reporting.

Discover more about E-Invoicing in Malaysia with Xero

Frequently asked questions about e-Invoicing

Along with more than 20 countries worldwide, Malaysia uses Peppol as the network provider for e-Invoicing due to its maturity, interoperability, and well-governed standards. MDEC (Malaysia Digital Economy Corporation) is Malaysia’s Peppol authority. It accredits Malaysia's Peppol service providers and Peppol-ready solution providers, specifying local requirements and technical standards, governing the overall Peppol framework compliance, and promoting the business adoption of e-Invoicing in Malaysia.

Learn more about MDEC

Along with more than 20 countries worldwide, Malaysia uses Peppol as the network provider for e-Invoicing due to its maturity, interoperability, and well-governed standards. MDEC (Malaysia Digital Economy Corporation) is Malaysia’s Peppol authority. It accredits Malaysia's Peppol service providers and Peppol-ready solution providers, specifying local requirements and technical standards, governing the overall Peppol framework compliance, and promoting the business adoption of e-Invoicing in Malaysia.

Learn more about MDEC

You can look up which businesses are registered for e-Invoicing in the Peppol directory for Malaysia.

Search for registered businesses in the Malaysia Peppol directory

You can look up which businesses are registered for e-Invoicing in the Peppol directory for Malaysia.

Search for registered businesses in the Malaysia Peppol directory

e-Invoicing is included in Xero Starter, Standard and Premium plans; you don’t need to purchase any additional add-on or external service, and accountants and bookkeepers can register on behalf of their business clients. Businesses will still receive bills by email and other methods.

Learn how e-Invoicing works

e-Invoicing is included in Xero Starter, Standard and Premium plans; you don’t need to purchase any additional add-on or external service, and accountants and bookkeepers can register on behalf of their business clients. Businesses will still receive bills by email and other methods.

Learn how e-Invoicing works

Prepare for your switch to E-Invoicing

Here’s more info on electronic invoicing. You can use Xero’s E-Invoicing system if you’re on a Xero Starter, Standard, or Premium plan.

Malaysia’s national E-Invoicing initiative

Learn how E-Invoicing helps small businesses and why the government supports it.

Here’s the MDEC initiative page

What you need to know about E-Invoicing

Discover how E-Invoicing is the easier way to invoice in this Xero blog post.

Check out Xero’s blog post on E-Invoicing

Register at the MyInvois portal

Connect Xero to E-Invoicing using your TIN (tax identification number).

See how to register

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