Driving Growth with ERP Expertise - Unlocking Efficiency and Compliance: A Comprehensive Guide to MyInvois E-Invoicing in Malaysia

Introduction to MyInvois E-Invoicing

Electronic invoicing, often abbreviated as e-invoicing, is the process of creating, sending, receiving, and processing invoices electronically, rather than using traditional paper-based methods. E-invoicing utilizes digital formats and standardized communication protocols to exchange invoice data between businesses or between businesses and governmental entities.

An e-Invoice is a digital representation of a transaction between a supplier and a buyer

Understanding E-Invoicing and Its Benefits

Unified invoicing process: Businesses can streamline creating a document and submitting it. Further, they can automate the data entry process.

Integrated tax return filing system: Seamless integration helps in efficient and accurate reporting of tax returns.

Streamlined operations: Improved efficiency and significant resources saved for businesses.

Improved cash flow: E-invoicing significantly reduces calculation and billing errors. This move results in faster payment cycles and reduced disputes.

Digitized financial reporting: e-Invoice aligns financial reporting and processes to be digitalized with the industry standard.

How MyInvois Works: A Step-by-Step Guide

E-invoice Model

MyInvois Portal hosted by IRBM: The MyInvois Portal can be accessed by all businesses. However, this portal is only suitable for a small volume of data and is feasible for Micro, Small, and Medium-sized Enterprises (MSMEs).

Application Programming Interface (API): API in either XML or JSON format. Adoption of API requires an investment in technology and modifications to the current systems. However, this is the ideal e-invoice generation mode for large businesses with a huge volume of transactions.

E-invoice Workflow

E-invoice Transaction

e-Invoice covers transactions such as:

- Business to Business (B2B), 

- Business to Customer (B2C), and 

- Business to Government (B2G). It is to be noted that e-invoice flow for B2G transactions will be similar to B2B.

e-Invoice applies to all commercial activities in Malaysia, including the sale of goods and services and specified non-business transactions between individuals.

In the case of B2C transactions, sellers do not have to issue e-invoices to the end consumers; however, they shall issue a normal invoice or receipt. After a specified timeline, the seller should aggregate all the normal invoices or receipts and issue a consolidated e-invoice

E-invoice Types

•      Invoices: It is generally used to record transactions between supplier and buyer. Invoice also include a self-billed invoice issued for tracking expenses.

•      Credit notes: A credit note is a document issued by sellers to make corrections to an e-Invoice issued previously mainly to lower the original invoice's value without returning money to the Buyer. It is generally used to adjust errors, apply discounts, or account for returned items. 

•      Debit notes: In contrast to credit notes, debit notes are issued to record additional costs related to a previously issued e-Invoice.

•      Refund notes: A refund e-Invoice is an official document issued by a Seller to record refund issued to the Buyer.

•      Self-Billed Invoice Self-Billed Invoice refers to the initial self-billed e-Invoice that will be issued by the Buyer

•      Self-Billed Credit Note: Self-Billed Credit Note is issued by Buyers to correct errors, apply discounts, or account for returns in a previously issued Self-Billed e-Invoice with the purpose of reducing the value of the original Self-Billed e-Invoice. This is used in situations where the reduction of the original Self-Billed e-Invoice does not involve return of monies to the Buyer

Self-Billed Debit Note : Self-Billed Debit Note is the document issued by Buyers to indicate additional charges on a previously issued Self-Billed e-Invoice

•      Self-Billed Refund Note: Self-Billed Refund Note is the document issued by Buyers to confirm the refund of the Buyer's payment. This is used in situations where there is a return of monies to the Buyer

E-invoice TimeLine

E-invoice API’s Flow