e-Invoicing in Malaysia: Clearance Update 

Malaysian Government Introduces a Six-Month Grace Period for Issuing Mandatory e-Invoices

By Ioana Ploesteanu, Product Marketing Manager, Tradeshift

As we covered previously in our e-Invoicing Mandates Malaysia 2024 article, Malaysia’s new e-invoicing and tax clearance system is being implemented in phases. The first phase, which started on August 1st, 2024, is mandatory for large businesses. However, in an update released by the Malaysian government on July 26th, 2024, a six-month grace period has now been introduced to give businesses flexibility in the initial phase of electronic invoicing implementation.

Here is a summary of what you need to know if you have business operations in Malaysia: 

• Grace Period: Businesses were given a six-month grace period starting from August 1, 2024. 
• Who is Affected: This grace period applies to large businesses with annual revenue of RM100 million (approx. USD 23.8 million) and above.
• Compliance Requirements During Grace Period: During this period, businesses are not required to issue individual electronic invoices, but they can issue monthly consolidated e-invoices for all transactions, including self-billed invoices.
• No Penalties During Grace Period: The Inland Revenue Board of Malaysia (IRB) provides this grace period to accommodate businesses with complex operations, ensure a smooth transition, and avoid penalties if they comply with the consolidated e-invoicing requirements.

The grace period is a welcome relief for businesses needing more time to adjust to the new e-invoicing and tax clearance system. It also provides them with flexibility in the implementation timeline. It will help them better understand the government requirements and the steps to register in MyInvois, the new platform for e-invoicing and tax clearance, and choose a suitable e-invoicing solution to efficiently handle and clear invoices in Malaysia. 

Platforms like Tradeshift Pay offer a competitive edge by streamlining data management, automating invoice generation, and ensuring compliance with complex regulations by connecting directly to the new government portals. With the growing complexity of tax and compliance requirements across borders, investing in a solution that simplifies these processes is essential for businesses looking to optimize operations and mitigate risks.

Three  Reasons to Choose Tradeshift for Invoice Clearing in Malaysia

1. Seamless Integration: Tradeshift is directly integrated with MyInvois, which means you do not need to make any technical efforts.
2. Effortless Clearing: We clear invoices on your behalf, and suppliers are onboarded in real-time with our innovative first invoice onboarding. We use the data from the cleared document to create the correct network connection in a simpler, faster, and better way. 
3. Enhanced Efficiency: Easily communicate with your suppliers through the Tradeshift platform and involve them in the document enrichment process. 

Tradeshift has a proven process for delivering compliance-as-a-service, and provides customers such as AirFrance, Disneyland Paris, Schaeffler with innovative solutions that support their digital transformation journey and ensure they comply with e-invoicing and tax clearance mandates.

We currently offer compliance-as-a-service for 70 countries, including a streamlined process for complying with tax clearance mandates in 12 countries and e-Invoicing mandates. 

Examples of countries with tax clearance or B2B e-invoicing mandates that we support are France, Romania, Malaysia, and Germany with other European and APAC countries on our roadmap. 

To ensure compliance excellence, we continually evaluate emerging global regulations and prioritise the inclusion of additional countries in our roadmap.

We’re also the only company offering cross-zone fapiao e-invoicing capabilities in China and among the first to become a registered PDP (PDP immatriculée) in France.

Start sending and receiving compliant e-invoices with Tradeshift