Malaysia is rolling out a comprehensive mandatory e‑invoicing (e‑Invoice) regime under the oversight of the Inland Revenue Board (LHDN/HASiL) and the Malaysia Digital Economy Corporation (MDEC). The system is based on a Continuous Transaction Control (CTC) model, where invoices are verified by the tax authority in real time via the MyInvois portal or through API integration
A phased rollout plan ensures businesses have ample time to comply:
During each six month soft rollout period, businesses can issue consolidated e‑Invoices to ease the transition penalties are waived if they comply with consolidation rules.
Technical & Operational Framework
- IDEA & PEPPOL: Malaysia has adopted the Peppol e‑invoicing framework to standardize formats and interoperability. MDEC serves as the Peppol Authority, while LHDN manages compliance and enforcement
- File Formats: Accepted invoice formats include UBL 2.1 XML or JSON, transmitting via MyInvois portal or API
- PEPPOL PINT 1.2.x: Latest version released on 3 June 2025 ensures Malaysia’s regional billing and self‑billing needs are met
- Invoice Data: Each invoice must include ~55 data fields details range from seller/buyer info to tax breakdown and must include a Unique Invoice ID and QR Code from MyInvois
- Buyer Rejections: Buyers have 72 hours to reject an invoice. Corrections or cancellations must be justified
- Data Retention: E‑Invoices must be archived for at least 7 years, with off shore storage allowed upon approval
Why e‑Invoicing Matters
The initiative is a key part of Malaysia’s MyDIGITAL plan, aiming to:
- Reduce tax leakage and fraud
- Improve compliance transparency
- Boost operational efficiency and eliminate manual errors
- Accelerate cash flow and reduce disputes
- Promote sustainable, paperless practices
By mid‑October 2024, already 7,400 businesses had issued 58 million e‑Invoices, indicating strong appetite even among SMEs
Preparing Your Business
- Assess readiness: Review current systems and issuing volumes
- Choose a transmission method:
- Manual input via MyInvois web portal (ideal for SMEs)
- API integration for automated, high-volume invoicing
3. Work with a Peppol Access Point Provider (AP) for seamless compliance
4. Train your finance team und run tests before your phase deadline
5. Go live and continuously monitor compliance ensure QR codes, unique IDs, archiving, and error handling are in place
Why Act Now?
- Beat deadlines: Don’t wait until your phase begins early adoption reduces risk.
- Avoid soft-period complications: Although penalties are suspended, reconciliation time is short.
- Gain operational benefits ASAP: Automation, fewer errors, faster payments, better data.
- Stay competitive: Being early helps in digital-ready local and international dealings.
How Melasoft Portal Simplifies It All
Once your readers understand the requirements, it’s the perfect moment to position your platform as the solution without overt marketing upfront.
Introducing Melasoft Portal
For freelancers, SMEs, and growing companies in Malaysia, Melasoft Portal is the easy way to send e‑Invoices compliant with LHDN and Peppol standards no IT teams or integration fuss required.
Key Benefits:
- Ready-to-send Templates
Customize invoices in minutes: select a template, add branding, hit Send and the system delivers to both your customer and LHDN’s MyInvois. - XML & JSON Support
Meets the UBL 2.1 or JSON technical specs required by MyInvois. - Peppol-Connected & MDEC-Accredited
Operates via certified Peppol APs through MDEC accreditation, ensuring full interoperability and legal compliance. - Email/OCR Parser
Email or upload PDFs, and let our OCR technology extract all invoice data no manual entry. - Real-Time Payment Tracking
Integrates with GoCardless Open Banking to automatically match payments, giving you clear visibility into receivables. - AI-Powered Invoice Checks
Built-in AI flags missing fields and suggests fixes reducing errors before submission. - Free Tier to Test
Includes 20 free e‑Invoices per month, fully compliant with LHDN no contract, no setup, no credit card.
Smooth Compliance:
Mit der Melasoft Portal, you’re not just sending invoices you’re effortlessly mapping to Malaysia’s phased mandate, avoiding deadlines, and keeping operations flowing all via a simple online interface.
Final Thoughts
Malaysia’s e‑Invoice mandate, with its phased rollout and technical standards, reflects the country’s push toward a modern, transparent economy. But for many businesses, navigating MyInvois, XML formats, QR codes, API integrations, and LHDN compliance can feel like climbing a mountain.
That’s where Melasoft Portal steps in helping you deliver legally compliant, Peppol ready e‑Invoices with zero hassle. Don’t wait until your threshold hits. Sign up, test with your 20 free e‑Invoices, and turn this regulatory challenge into an opportunity for operational efficiency and growth.