Who Must Issue E-Invoices in Malaysia? A Clear Guide for Your Business

A Clear Guide for Your Business

Malaysia’s digital transformation means that e-invoicing is now a regulatory requirement for many businesses. With strict deadlines set by the Inland Revenue Board of Malaysia (IRBM), it’s crucial to know whether your business must issue e-invoices. This guide is especially useful for clinics using Kreloses’ clinic management software, ensuring you’re fully prepared for the new compliance landscape.

Who Is Required to Issue E-Invoices?

• Large Enterprises: Businesses with an annual turnover exceeding RM100 million must issue e-invoices starting from August 1, 2024. This measure ensures high-revenue companies maintain transparency and consistency in financial reporting.

• Medium-Sized Companies: For companies with a turnover between RM25 million and RM100 million, e-invoicing becomes mandatory from January 1, 2025. These firms must adapt to the new system to streamline their invoicing processes.

• All Taxpayers: Regardless of business size, all taxpayers are required to comply with e-invoicing regulations by July 1, 2025. This universal mandate helps standardize invoicing across all sectors.

• Certain MSMEs and Group Entities: Some smaller businesses, especially those that are part of larger corporate groups or whose shareholders exceed certain revenue thresholds, are also required to implement e-invoicing even if their individual turnover is lower.

Why Compliance Is Essential

• Regulatory Obligations: The IRBM has set these deadlines to ensure a smooth transition to digital record-keeping. Non-compliance can lead to significant penalties, including fines of up to RM20,000 per instance, and even potential imprisonment, which can disrupt your business operations.

• Operational Benefits: Beyond avoiding penalties, e-invoicing brings enhanced accuracy, faster processing times, and reduced administrative workloads. This means fewer manual errors and more efficient cash flow management.

• Increased Transparency: Digital invoices create a clear audit trail, making it easier for businesses to track transactions and for regulators to verify records. This transparency fosters a more reliable and compliant business environment.

How Kreloses Supports Your E-Invoicing Compliance

Kreloses’s clinic management software is specifically designed to help Malaysian businesses navigate the complexities of e-invoicing:

• Seamless Integration: Our platform connects directly with the MyInvois portal, ensuring your e -invoices are automatically validated according to IRBM guidelines.

• Streamlined Processes: By automating data capture and invoicing tasks, Kreloses minimizes manual errors and accelerates the invoicing cycle, allowing your clinic to focus on patient care instead of paperwork.

• Real-World Results: Clinics using Kreloses have experienced smoother operations, improved cash flow, and reduced compliance headaches, benefits that are vital in today’s competitive healthcare landscape.

• Dedicated Support: Our experienced support team is always available to help you adapt to any regulatory updates, ensuring your business remains compliant and efficient.

Two Simple Steps to Kick Start E-Invoicing with Kreloses

• Setting Kreloses as an Intermediary on the MyInvois Portal: Begin by designating Kreloses as your intermediary on the MyInvois Portal. This step allows your clinic management software to communicate directly with Malaysia’s tax systems.

• Activate Your Kreloses Account to Enable E-Invoicing: Once set up, activate e-invoicing in your Kreloses account. When a client requests an e-invoice, simply click the Submit button in your account. The system automatically sends the invoice details to your LHDN portal and returns with an e-invoice QR code. For clients who do not request an individual e-invoice, you can still submit consolidated invoices on a monthly basis. Kreloses provides a detailed summary breakdown for quick review before you click Submit.

E-invoicing is the current mandate for many Malaysian businesses. Whether you’re a large corporation, a medium-sized company, or part of a group that meets specific thresholds, issuing e-invoices is now required by law. With the seamless integration and operational efficiencies offered by Kreloses’s clinic management software, your business can meet these requirements effortlessly, ensuring a smooth transition into the digital age.