Frequently Asked Questions

An e‑invoice is a digital record of a transactional exchange between a seller (supplier) and a purchaser (buyer), which goes through the government portal for validation and recordkeeping.

e‑Invoicing has been mandatory for certain transactions for specific taxpayers since August 2024. The rollout to all other taxpayers undertaking commercial activities in Malaysia is ongoing, and full implementation is targeted for completion by July 2026.

The Inland Revenue Board of Malaysia (IRBM) is the authority for e‑Invoice activities.

e‑Invoicing is being implemented in phases based on turnover. It first became mandatory for businesses with an annual turnover exceeding RM100 million starting from 1 August 2024. Each phase, taxpayers are given a relaxation period of 6 months with less strict compliance and amnesty against penalty for non-compliance after their implementation date to adapt to the new system.

The supplier of the transaction is responsible for issuing an e‑Invoice. However, in certain cases, the buyer self generates the e‑Invoice also known as “Self-billed e‑Invoice”. Self-billed e‑Invoice is required for various transactions, including payments to agents, foreign suppliers' sales, profit distribution, e-commerce, betting and gaming payouts, and acquisitions from individual taxpayers, as outlined in specific guidelines.

There is a consolidated e‑Invoice requirement for transactions where e‑Invoicing is not mandatory, and the buyer does not request an e‑Invoice to be issued. Taxpayers must aggregate all invoices and receipts issued and issue a consolidated e‑Invoice via the MyInvois, on a monthly basis (within seven days from the month end).

The Malaysian government is gradually introducing this requirement across different taxpayer groups. All businesses conducting commercial activities in Malaysia should identify which implementation phase applies to their organisation. The rollout to all remaining taxpayers is progressing, with complete implementation targeted for completion by July 2026.

Taxpayers within scope of the e‑Invoicing mandate submit documents via the country’s MyInvois Portal for validation, before sharing with the buyer. The real-time e‑Invoicing process saves time and resources for businesses and facilitates cross-border and international trade.

e‑Invoicing in Malaysia covers transactions such as Business to Business (B2B), Business to Customer (B2C), and Business to Government (B2G).

Invoices, credit notes, debit notes and refund notes fall under the scope of Malaysia e‑Invoice.

No, e‑Invoice applies to both domestic and international transactions.

The IRBM has been implementing mandatory e‑Invoicing in phases based on company turnover. Initially, the implementation was set to start on June 1, 2024, but it has been postponed to August 1, 2024, as announced in Malaysia Budget 2024. Here is the updated timeline and relaxation period as per the latest IRBM guidelines (July 2025):

IRBM accepts e‑Invoices in XML or JSON file formats, as specified in their guidelines.

The Malaysian government has introduced tax incentives and grants related to e‑Invoice implementation in Budget 2024. This includes a tax deduction of up to RM50,000 per year of assessment for expenditures on environmental, social, and governance initiatives, including consultation fees for e‑Invoice implementation by Micro, Small, and Medium Enterprises (MSMEs). These incentives are effective from the year of assessment 2024 to 2027.

Failing to issue an e‑Invoice is considered an offence under Section 120(1)(d) of the Income Tax Act 1967. The penalty for non-compliance includes a fine ranging from RM200 to RM20,000, or imprisonment for up to 6 months, or both, for each instance of non-compliance.

To issue an e‑Invoice, it is necessary to provide 55 data fields, out of which 37 are mandatory and 18 are optional, categorized into eight groups: Address, Business Details, Contact Number, Invoice Details, Parties, Party Details, Payment Info, and Products/Services. Additionally, specific circumstances may necessitate submitting an annex with 17 additional details to IRBM. A seller shall issue an e‑Invoice with 34 mandatory fields and an additional 17 fields based on specific conditions.

Yes, the seller can cancel the e‑Invoice within 72 hours from generation time.

No, the seller should cancel the e‑Invoice and reissue a new e‑invoice.

No, there will be no change in the invoice number. However, the seller will get an e‑Invoice with a Unique Identifier Number once IRBM validates and clears the invoice.

No, you can use any device, such as a mobile camera or a QR code scanner.

QR code gives you a link to the validated e‑Invoice. Further, you can use the link to access the e‑Invoice via the Myinvois portal.

Unlike broad "Fintech" platforms, Mogu is a specialized middleware solution built specifically for the Malaysian regulatory landscape. We prioritize a non-disruptive approach, wrapping around your existing document workflows to convert standard PDFs and Excel files into LHDN-compliant formats without requiring you to replace your current accounting software.

While tax compliance is a cross-industry requirement, Mogu is adaptable to any sector. We currently power e‑Invoicing for over 1,200 clients in manufacturing, retail, utilities, and government services.

Yes. Mogu acts as a middleware layer that connects to your systems via API, SFTP, or simple file uploads. This ensures a seamless transition with zero operational disruption to your established financial processes.

No. The Mogu Portal is "built for finance teams, not tech teams". It is designed for ease of use and requires no technical expertise to master. Additionally, our dedicated service center of 90+ professionals is available on-demand for hands-on support.

Our engine is capable of extracting and validating over 20,000 line items daily directly from your PDF or Excel documents, ensuring speed and scalability for high-growth enterprises.

Mogu guarantees a 4-week record delivery for system setup, ensuring your business meets regulatory deadlines with total confidence.

Mogu assists with one-time SST-01 registration, automated bi-monthly SST-02/02A filing, and provides advisory on documentation requirements to comply with the Service Tax Regulation 2018.

By aggregating taxable transactions directly from validated e‑Invoices, Mogu maintains a secure, auditable log for the required six-year retention period, assisting your team during official Customs audits.

Mogu utilizes 256-bit encryption and secure transmission protocols. All data processing is strictly aligned with the Malaysian Personal Data Protection Act (PDPA) 2010.

Malaysian law requires businesses to maintain and archive all validated invoices and supporting documentation for at least seven years. Mogu provides encrypted digital storage to fulfill this mandate.