Malaysia Einvoice

Section 1 -- Quick Reference

Quick Reference

Field	Value
Country	Malaysia
Currency	MYR (Malaysian Ringgit)
E-Invoicing System	MyInvois
Governing Body	Inland Revenue Board of Malaysia (IRBM / LHDNM / LHDN)
Key Legislation	Income Tax Act 1967 (Section 82C); Income Tax (Issuance of Electronic Invoice) Rules 2024 [P.U.(A) 265]
Schema Standard	UBL 2.1 (Universal Business Language)
Format	XML or JSON
Model	Continuous Transaction Control (CTC) — validation before use
Implementation Start	1 August 2024 (Phase 1)
Current Status	Phase 4 active (RM1M-RM5M from 1 Jan 2026); full enforcement from 1 Jan 2027
Portal	myinvois.hasil.gov.my
SDK Documentation	sdk.myinvois.hasil.gov.my

Implementation Timeline

Implementation Timeline

Phase	Annual Revenue (FY2022)	Mandatory From	Relaxation Ends	Full Enforcement
Phase 1	> RM100 million	1 August 2024	31 January 2025	Active
Phase 2	RM25M -- RM100M	1 January 2025	30 June 2025	Active
Phase 3	RM5M -- RM25M	1 July 2025	31 December 2025	Active
Phase 4	RM1M -- RM5M	1 January 2026	31 December 2026	1 January 2027
New businesses (2023-2025, ≥RM1M)	RM1M+	1 July 2026	31 December 2026	1 January 2027

Exemption Threshold

• Businesses with annual turnover below RM1 million are currently exempt
• Revenue determination based on FY2022 Audited Financial Statements (or tax return if no audit required)
• For new businesses commencing from 2026 onwards: mandatory from 1 July 2026 or commencement date (unless first-year revenue < RM1M)

Section 2 -- Mandate Scope

Who Must Comply

• All taxpayers carrying on a business in Malaysia whose annual turnover/revenue meets the threshold for their implementation phase
• Covers: companies, sole proprietors, partnerships, LLPs, cooperatives, associations, trusts, and other entities
• Revenue measured from Statement of Comprehensive Income in FY2022 Audited Financial Statements

Transaction Coverage

Transaction Coverage

Transaction Type	E-Invoice Required
B2B (business to business)	Yes — individual e-invoice per transaction
B2G (business to government)	Yes — individual e-invoice per transaction
B2C (business to consumer)	Yes — individual e-invoice for transactions > RM10,000 (from 1 Jan 2026); consolidated for smaller
Cross-border (exports)	Yes — e-invoice required
Self-billed transactions	Yes — buyer issues self-billed e-invoice
Foreign income receipts	Yes — self-billed e-invoice by Malaysian recipient

Document Types

Document Types

Type Code	Document	Description
01	Invoice	Standard tax invoice
02	Credit Note	Adjustment reducing amount
03	Debit Note	Adjustment increasing amount
04	Refund Note	Refund document
11	Self-Billed Invoice	Buyer-issued invoice
12	Self-Billed Credit Note	Buyer-issued credit note
13	Self-Billed Debit Note	Buyer-issued debit note
14	Self-Billed Refund Note	Buyer-issued refund

Consolidated E-Invoice (B2C)

• Permitted for B2C transactions where individual e-invoice is not required
• Must be issued within 7 calendar days after month-end
• Aggregate all transactions for the period into a single submission
• From 1 January 2026: individual e-invoice mandatory for B2C transactions exceeding RM10,000

Section 3 -- Technical Format

UBL 2.1 Structure

UBL 2.1 Structure

Aspect	Detail
Standard	Universal Business Language 2.1 (ISO/IEC 19845)
Submission Format	XML or JSON (both accepted)
Root Element (XML)	<Invoice>
UBL Namespace	urn:oasis:names:specification:ubl:schema:xsd:Invoice-2
CAC Namespace	urn:oasis:names:specification:ubl:schema:xsd:CommonAggregateComponents-2
CBC Namespace	urn:oasis:names:specification:ubl:schema:xsd:CommonBasicComponents-2
Document Version	v1.1 (current as of 2026)
Character Encoding	UTF-8

Data Structure Categories (55 Fields in 8 Groups)

Data Structure Categories (55 Fields in 8 Groups)

Category	Fields Included
1. Address	Street, city, state, postal code, country
2. Business Details	TIN, BRN/SST number, MSIC code, tourism tax number
3. Contact Number	Telephone, email
4. Invoice Details	Version, type, code/number, date, time, currency, tax calculation
5. Parties	Supplier and Buyer identification
6. Party Details	Names, addresses, contact information
7. Payment Info	Payment mode, terms, prepayment details
8. Products/Services	Description, quantity, unit price, tax type, tax rate, tax amount, subtotal

Digital Signature Requirement

• Every e-invoice must include an issuer's digital signature
• Certificate obtained from IRBM-approved certificate authority (PosDigicert or equivalent)
• Signature embedded in UBL cac:Signature element
• XAdES format for XML; equivalent JSON structure for JSON submissions

Section 4 -- Mandatory Fields

Invoice Header

Invoice Header

UBL Path	Field Name	Description	Example
cbc:InvoiceTypeCode/@listVersionID	e-Invoice Version	Current version	1.1
cbc:InvoiceTypeCode	e-Invoice Type Code	Document type	01
cbc:ID	e-Invoice Code/Number	Unique reference	INV-2026-001
cbc:IssueDate	Issue Date	UTC date	2026-05-22
cbc:IssueTime	Issue Time	UTC time	15:30:00Z
cbc:DocumentCurrencyCode	Currency Code	ISO 4217	MYR
cac:Signature	Digital Signature	Issuer signature	(embedded)

Supplier (cac:AccountingSupplierParty)

Supplier (cac:AccountingSupplierParty)

Field	Description	Mandatory
TIN	Tax Identification Number	Yes
BRN / NRIC / Passport	Registration/ID number	Yes
SST Registration Number	Sales & Service Tax number	If registered
Tourism Tax Registration	Tourism tax number	If applicable
MSIC Code	Malaysian Standard Industrial Classification	Yes
Name	Legal name	Yes
Address	Full address (street, city, state, postal code)	Yes
Contact (Phone)	Telephone number	Yes
Contact (Email)	Email address	Yes
Country	Country code	Yes (MY)
State	State code (per IRBM code table)	Yes

Buyer (cac:AccountingCustomerParty)

Buyer (cac:AccountingCustomerParty)

Field	Description	Mandatory
TIN	Tax Identification Number	Yes
BRN / NRIC / Passport	Registration/ID number	Yes
SST Registration Number	Sales & Service Tax number	If applicable
Name	Legal name or individual name	Yes
Address	Full address	Yes
Contact (Phone)	Telephone number	Yes
Country	Country code	Yes

Line Items (cac:InvoiceLine)

Line Items (cac:InvoiceLine)

Field	Description	Mandatory
Item Classification Code	IRBM classification code	Yes
Item Description	Product/service description	Yes
Unit Price	Price per unit	Yes
Quantity	Number of units	Yes
Measurement (Unit)	Unit of measure	Yes
Subtotal	Line amount (Qty × Unit Price)	Yes
Tax Type	Tax category (01=SST, 02=Service Tax, E=Exempt, etc.)	Yes
Tax Rate	Applicable percentage	Yes (if taxable)
Tax Amount	Calculated tax	Yes (if taxable)
Total Excluding Tax	Line total before tax	Yes
Total Including Tax	Line total with tax	Yes

Totals

Totals

Field	Description
Total Excluding Tax	Sum of all line totals before tax
Total Tax Amount	Sum of all tax amounts
Total Including Tax	Grand total
Total Payable Amount	Amount due from buyer

Section 5 -- Transmission Method

Submission Channels

Submission Channels

Channel	Description	Use Case
MyInvois Portal	Web-based manual submission	Low volume (< 50 invoices/month)
System-to-System API	Direct API integration	Medium-to-high volume
ERP/Accounting Software	Pre-built integration via middleware	Enterprise

API Endpoints (Production)

API Endpoints (Production)

Endpoint	Method	Purpose
/api/v1.0/login/taxpayer	POST	Authenticate via OAuth 2.0 (client credentials)
/api/v1.0/login/intermediary	POST	Authenticate as intermediary system
/api/v1.0/documentsubmissions	POST	Submit e-invoice(s) for validation
/api/v1.0/documents/{uuid}/details	GET	Retrieve validated document
/api/v1.0/documents/{uuid}/cancel	PUT	Cancel an e-invoice
/api/v1.0/documents/{uuid}/reject	PUT	Reject received e-invoice (buyer)
/api/v1.0/documents/search	GET	Search submitted documents
/api/v1.0/documents/{uuid}/qrcode	GET	Get QR code for document

Base URLs

Base URLs

Environment	URL
Production	https://myinvois.hasil.gov.my
Sandbox	https://preprod-api.myinvois.hasil.gov.my
SDK Portal	https://sdk.myinvois.hasil.gov.my

Authentication

• OAuth 2.0 Client Credentials flow
• Client ID and Client Secret obtained from MyInvois portal
• Token validity: 1 hour
• Intermediary systems can act on behalf of multiple taxpayers

Validation Flow

1. Supplier generates e-invoice in UBL 2.1 XML/JSON format
2. Supplier signs the document with digital signature
3. Submit to IRBM via API or portal
4. IRBM validates structure, data, digital signature
5. If valid: IRBM assigns unique identifier + validation timestamp
6. Validated e-invoice shared with buyer (via MyInvois or direct)
7. Buyer has 72 hours to reject (if disputed)

Section 6 -- Validation Rules

IRBM Validation Checks

1. Schema validation — Conforms to UBL 2.1 structure per MyInvois SDK specification
2. Mandatory field completeness — All 55 required fields present
3. Digital signature verification — Valid certificate from approved authority
4. TIN validation — Both supplier and buyer TIN must be valid and active
5. BRN/NRIC consistency — Must match IRBM records
6. Tax calculation — Tax amounts must equal rate × base (within tolerance)
7. Code table validation — MSIC codes, state codes, currency codes, tax types must be from valid lists
8. Duplicate check — Same document ID from same supplier not accepted twice
9. Date/time validation — Must be in UTC; not future-dated beyond tolerance

Validation Statuses

Validation Statuses

Status	Meaning
Submitted	Received, awaiting validation
Valid	Passed all checks; legally valid e-invoice
Invalid	Failed validation; must correct and resubmit
Cancelled	Cancelled by supplier (within permitted window)
Rejected	Rejected by buyer (within 72 hours of validation)

Common Rejection Reasons

Common Rejection Reasons

Error	Description	Resolution
Invalid TIN	TIN not found or inactive	Verify TIN at IRBM portal
Missing mandatory field	Required field absent	Add missing field per SDK spec
Invalid digital signature	Certificate expired or unrecognized	Renew certificate from approved CA
Tax calculation mismatch	Computed tax ≠ stated tax	Recalculate: TaxAmount = Rate × Base
Invalid classification code	Item code not in IRBM table	Look up correct code in classification list
Duplicate submission	Same ID already validated	Use unique invoice number

Section 7 -- Tax Computation Rules

Applicable Taxes

Applicable Taxes

Tax Type	Code	Rate	Applicable To
Sales Tax	01	5% or 10%	Manufactured/imported goods
Service Tax	02	6% or 8%	Prescribed services
Tourism Tax	03	RM10/room/night	Accommodation
Exempt	E	0%	Exempted goods/services
Not Applicable	06	0%	Out of scope

Calculation Rules

• Line Tax Amount formula — Line Tax Amount = Taxable Amount × Tax Rate / 100; Rounding: 2 decimal places (standard rounding); Document-level Tax Total = sum of all line tax amounts; Total Including Tax = Total Excluding Tax + Total Tax Amount; Multiple tax types can appear on same invoice (different lines) (Section 7 -- Tax Computation Rules)

Multi-Rate Invoice

• Each line item carries its own Tax Type and Tax Rate
• Invoice totals aggregate across all tax types
• Self-billed invoices follow same calculation rules

Discount/Charge Handling

• Discounts applied at line level (reduce Unit Price or add discount element)
• Charges (e.g., freight, handling) added as separate line items or invoice-level charges
• Tax calculated on net amount (after discount, before charges where applicable)

Foreign Currency

• If DocumentCurrencyCode ≠ MYR, include exchange rate
• Tax amounts may need to be expressed in MYR for SST purposes
• Use Bank Negara Malaysia published rates

Section 8 -- Archiving Requirements

Section 8 -- Archiving Requirements

Requirement	Detail
Retention Period	7 years from end of the year of assessment (Income Tax Act 1967)
Format	Original validated XML/JSON (with IRBM validation response)
Accessibility	Must be retrievable from MyInvois portal; also maintain own copy
Digital Signature	Preserved within the document
QR Code	Generated by IRBM post-validation; contains link to verify e-invoice
Buyer Copy	Buyer can access validated e-invoice via MyInvois portal
Cancellation Records	Cancelled e-invoices remain in system with cancelled status
Medium	Electronic storage acceptable; no paper copy required for tax purposes
Audit	IRBM can request access to any e-invoice via MyInvois system directly

Section 9 -- Penalties for Non-Compliance

Section 9 -- Penalties for Non-Compliance

Violation	Penalty	Legal Basis
Failure to issue e-invoice	RM200 -- RM20,000 fine per instance OR up to 6 months imprisonment	Section 82C, Income Tax Act 1967
Issuing e-invoice with incorrect information	RM200 -- RM20,000 fine per instance	Section 82C
Late submission	Subject to penalty after relaxation period ends	P.U.(A) 265
Repeated non-compliance	Higher end of penalty range; potential prosecution	Income Tax Act 1967

Relaxation Period

• During relaxation period for each phase, IRBM will not impose penalties
• Relaxation is for technical adaptation — taxpayers should still attempt compliance
• Phase 4 relaxation: 1 January 2026 -- 31 December 2026 (full enforcement from 1 January 2027)

Buyer Impact

• Buyers may not claim tax deductions without valid e-invoice from supplier
• Self-billed e-invoices required for certain expense types (foreign services, employee benefits)

Section 10 -- Interaction with Tax Skills

Corporate Income Tax (Form C)

• Revenue reported in Form C must align with e-invoices issued via MyInvois
• IRBM can cross-reference declared revenue against total validated e-invoices
• Deductions must be supported by received/self-billed e-invoices

SST Return

• Sales Tax and Service Tax amounts declared in SST-02 return derived from e-invoice data
• IRBM reconciles SST return against e-invoice tax totals
• Discrepancies may trigger audit or penalty

Transfer Pricing

• Cross-border e-invoices provide documentation for transfer pricing compliance
• Self-billed e-invoices for foreign services create audit trail

Withholding Tax (Section 109)

• Payments to non-residents requiring withholding tax must have corresponding e-invoice
• Self-billed e-invoice issued by Malaysian payer for non-resident service providers

Real Property Gains Tax (RPGT)

• Property transactions require e-invoice issuance
• Captures transaction value for RPGT assessment

Employer Obligations

• Benefits-in-kind and perquisites to employees may require e-invoice/self-billed e-invoice
• Medical benefits, club memberships, accommodation: reportable via e-invoice system
• Links to Form EA/EC employee reporting

Audit Trail

• IRBM maintains centralized record of all validated e-invoices
• Full digital audit trail from issuance to payment
• Reduces paper-based audit requirements; enables data-driven risk assessment

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a tax agent, chartered accountant, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

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