As we follow the implementation schedule of e-Invoice set by LHDN, it’s time we get to know more about the workflow and what’s required to ensure a smooth transmission from traditional invoicing methods to the new methods.
E-Invoice Model
To facilitate taxpayers’ transition to e-Invoice, LHDN has developed two (2) distinct e-Invoice transmission mechanisms:
1. MyInvois Portal
Allows all taxpayers to view and search for their respective e-Invoices and provides a platform to taxpayers who are not able to issue an e-Invoice on their own system.
2. Application Programming Interface (API)
Taxpayers are required to login to MyTax Portal to utilize MyInvois Portal to perform their e-Invoice obligations in accordance with the rules and requirements outlined by LHDN.
1. Application Programming Interface (API) API allows taxpayers to submit e-Invoices directly to IRBM. Methods to transmit e-Invoice via API include:
- Direct integration of taxpayers’ ERP system with MyInvois System.
- Through Peppol service providers.
- Through non-Peppol technology providers.
The following formats will be supported for e-Invoice submission, while adhering to the data structure of Universal Business Language Version 2.1:
Extensible Markup Language (XML): XML is defined as a simple text-based format for representing structured information. It will not process files that contain errors and error messages will be sent to inform that rectification is required.
JavaScript Object Notation (JSON): JSON is a lightweight text-based data interchange format that is simpler to read and write as compared to XML.
Step 1 : Issuance of e-Invoice The supplier creates an e-Invoice via MyInvois Portal or API once a transaction is made.
Step 2 : Validation of e-InvoiceLHDN validates e-Invoices instantly to ensure they meet standards.
Step 3 : Notification on ValidationBoth suppliers & buyers receive instant notifications via portal or email.
Step 4 : Sharing of e-InvoiceValidated e-Invoice is shared to buyers via QR codes.
Step 5 : Rejection or CancellationE-Invoices can be rejected/canceled by buyers and suppliers within 72 hours.
Step 6 : MyInvois Portal Suppliers and buyers can obtain a summary via MyInvois Portal.
Choosing the Right Method with MHub
As we gear up for the implementation of e-Invoicing, it is crucial in understanding what your business has and which method would best suit your needs.
Ensure to choose the right model of e-Invoice submission as per LHDN guidelines:
- Manual submission through MyInvois Portal, or
- Automatic submission through API integration
Asking the right questions will help ensure your readiness for this transition!
Assess Applicability : Understand your current billing & invoicing processes
Pick a Digital Solution : Pick a user-friendly solution that integrates seamlessly
Train and Transition : Get your team onboard for a smooth switch
Reach out to us and let us help facilitate a seamless transition for your business, hand-in-hand - better together. Register for upcoming e-invoicing events at https://www.mhub.my/e-invoicing.