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As Malaysia moves toward full digitalization of its tax system, the e-Invoicing mandate by Lembaga Hasil Dalam Negeri (LHDN) is becoming a reality for businesses across sectors. Whether you're an SME or a large manufacturer, the shift to e-invoicing in Malaysia is not just a compliance requirement—it’s an opportunity to streamline operations, reduce costs, and improve financial transparency.

This blog will help you understand what e-invoicing is, how it works in Malaysia, and how to get your business ready with the right e-invoicing software, ERP integration, and process updates.

What is e-Invoicing?

e-Invoicing, or electronic invoicing, refers to the digital exchange of invoices between suppliers and buyers in a structured, machine-readable format. It eliminates manual invoice creation, paper trails, and delays in reconciliation.

In Malaysia, e-invoicing is being introduced as a mandatory system by LHDN to improve tax reporting, reduce fraud, and enhance transparency in business transactions. The rollout will affect all B2B, B2C, and B2G invoices over time, starting with businesses above a certain turnover threshold.

Why e-Invoicing Matters for Malaysian Businesses

The e-invoicing mandate in Malaysia is more than a regulatory change—it is a push toward digital transformation. Here’s why businesses should take it seriously:

• Mandatory compliance for tax reporting to LHDN

• Enhanced transaction visibility and audit readiness

• Reduced invoice errors and fraud

• Faster payment cycles

• Integration with ERP software in Malaysia for automated workflows

For manufacturers especially, who deal with complex billing structures, multi-tier supply chains, and large volumes of transactions, this mandate demands careful planning and the right technological tools.

Who Needs to Comply and When?

LHDN has proposed a phased rollout based on annual revenue thresholds:

• August 1, 2024: Businesses with turnover > RM100 million

• January 1, 2025: Turnover between RM25 million – RM100 million

• July 1, 2025: All other taxpayers

If your business falls into any of these categories, it’s crucial to start preparing now. Waiting until the last minute can result in compliance issues, penalties, and operational disruptions.

Step-by-Step Guide: Preparing for e-Invoicing in Malaysia

1. Understand LHDN’s MyInvois System

LHDN will be using the MyInvois Portal, an electronic invoicing platform where invoices can be generated, validated, and submitted. This system will be integrated with your ERP or invoice billing software.

Key steps:

• Study LHDN’s e-invoicing framework and guidelines

• Map your invoicing process to the MyInvois flow

• Identify necessary API integrations with your ERP

2. Assess Your Current Invoicing System

Before implementation, evaluate your current systems:

• Are your invoices generated manually or digitally?

• Do you have an existing ERP software for manufacturing industry or other integrated tools?

• Can your system generate structured invoice data (JSON/XML)?

This assessment will help identify whether you need to upgrade your existing ERP software in Malaysia or adopt a dedicated e-invoicing software.

3. Upgrade or Integrate ERP and Invoicing Software

To comply with e-invoicing requirements efficiently, your systems need to:

• Integrate with LHDN’s MyInvois platform

• Generate and validate e-invoices in the required format

• Support real-time transmission and response capture

• Maintain a secure digital archive of issued invoices

At Matiyas Solutions, we help manufacturers and distributors implement or upgrade their ERP software in Malaysia with built-in e-invoicing functionality.

Our ERP solutions include:

• Invoice generation and validation

• Automated billing and reconciliation

• Real-time integration with MyInvois

• Role-based access and audit logs

Whether you are a manufacturer seeking ERP software for manufacturing industry or a trader needing simple invoice billing software, Matiyas has a scalable solution for your needs.

4. Train Your Team

Digital adoption is only as strong as the people using it. Your finance, sales, and procurement teams should be trained on:

• Generating and submitting e-invoices

• Resolving validation errors

• Managing MyInvois responses and rejections

• Ensuring audit readiness and compliance documentation

Matiyas Solutions offers onboarding and training as part of its ERP and e-invoicing software implementation process.

5. Establish a Validation & Reconciliation Workflow

Validation failures or invoice mismatches can delay transactions and tax filings. Therefore, businesses should:

• Set up internal invoice approval workflows

• Monitor validation status on MyInvois

• Reconcile e-invoicing data with accounting and GST returns

• Keep real-time dashboards for pending invoices and rejections

Our ERP systems support automated alerts and workflows to help you stay on top of compliance and reconciliation.

6. Test Before the Deadline

Once your systems are in place, conduct a full test cycle:

• Issue sample invoices via your ERP

• Validate submission with LHDN’s test environment

• Simulate rejections, corrections, and real-time acknowledgments

• Generate audit reports

Testing ensures you go live without disruption once your compliance date arrives.

Why Choose Matiyas Solutions for e-Invoicing in Malaysia?

At Matiyas Solutions, we understand the local compliance landscape and offer end-to-end support from ERP selection and customization to e-invoicing software integration and training.

Our Capabilities:

• Industry-specific ERP, including ERP software for manufacturing industry

• Pre-configured e-invoicing features ready for Malaysia's MyInvois system

• Support for multi-location, multi-currency, and GST compliance

• Cloud-based, scalable solutions that grow with your business

• Expert consultation and post-implementation support

Our ERP platforms are designed to serve both small and large enterprises, helping them streamline operations, reduce paperwork, and stay tax-compliant effortlessly.

Conclusion

The e-invoicing in Malaysia is fast approaching, and proactive preparation is key to staying compliant and competitive. Whether you're a manufacturing business or a service provider, adopting a robust ERP software in Malaysia with integrated e-invoicing capabilities will simplify operations, improve accuracy, and ensure real-time compliance with LHDN.

Matiyas Solutions is here to support you through every stage of e-invoicing transformation from evaluation to implementation. If you're looking to future-proof your business and streamline your financial operations, now is the time to act.

Contact Matiyas Solutions today to get a free consultation or schedule a demo of our ERP and e-invoicing solutions.