LHDN Malaysia Releases SDK (Software Development Kit ) & Updated Guidelines for e-invoicing

On the 9th of February, LHDN announces the release of e-Invoicing Guidelines Version 2.2, e-Invoicing Specific Guidelines Version 2.0, and the much-anticipated Software Development Kit (SDK) Beta Version. These releases mark a significant leap in clarity, addressing various invoice scenarios like self-billing and transactions involving foreign suppliers/buyers. Additionally, API documentation is now available for testing by the Malaysian regulatory authority.

Timeline for Implementation:

• August 1, 2024: Applicable to taxpayers with an annual turnover exceeding RM100 million.
• January 1, 2025: Extends to taxpayers with an annual turnover between RM25 million and RM100 million.
• July 1, 2025: Encompasses all other taxpayers.
• Note: Thresholds are based on the statement of comprehensive income in the audited financial statements for the financial year 2022.

Scope of Malaysian E-Invoice Regulation:

• Encompasses both domestic and cross-border transactions.
• Offers exemptions for government entities, local authorities, rulers, and ruling chiefs.

Types of Transactions:

• Inclusive of B2G, B2B, and B2C transactions.
• Invoice types include Invoice, credit note, debit note, and refund note.
• Clarity on self-billing scenarios.
• Mandatory fields elucidated with examples (e.g., TIN number for non-Malaysian buyers).
• Suppliers allowed to aggregate transactions with buyers not requiring e-invoice on a monthly basis.
• Retrieving and verifying TIN methods clarified, including eDaftar.

Exceptions for Consolidated E-Invoice:

• Allows suppliers to consolidate transactions with buyers not requiring e-invoice on a monthly basis.
• Submission of a combined e-invoice to IRBM within seven (7) calendar days after the month concludes.

Not Allowed for Specific Activities/Transactions:

• Automotive
• Aviation
• Luxury goods and jewelry
• Construction
• Wholesalers and retailers
• Licensed betting and gaming
• Payment to agents

Supplier Issuing Methods:

• Online platform (Retailer Web Portal/Mobile App).
• Retailers' Point-of-sale (POS) system.
• MyInvois Mobile App.
• Post-Transaction Request via Online Platform (Retailer Web Portal/Mobile App).

Unlocking Seamless E-Invoicing with Esker:

Esker stands at the forefront of this revolutionary shift, offering tailored solutions to ensure your seamless transition to the new e-invoicing landscape in Malaysia. Our team is dedicated to providing support and expertise in navigating these changes. As the deadlines approach, we’ll like to guide you through the format of e-invoicing compliance.

Sign up for our e-invoicing workshop tailored to meet your needs:

You can expect to gain insights on assessing organisational readiness, creating implementation roadmaps, overcoming challenges, and integrating with existing systems and best practices through case studies and interactive Q&A sessions. At the end of the session, the learning points will help you and your team understand where you are with digitalisation and help you better with your decision-making processes.