E-Invoicing in Malaysia: A Game Changer for the Retail Industry

The introduction of e-invoicing in Malaysia is set to transform how businesses, particularly in the retail sector, handle transactions and comply with tax regulations. With the Inland Revenue Board of Malaysia (IRBM) leading the charge, businesses are expected to embrace digital invoicing in a phased manner to streamline tax reporting, reduce fraud, and enhance transparency.

Phased E-Invoicing Rollout in Malaysia

Malaysia has outlined a phased approach to e-invoicing compliance, ensuring that businesses of varying sizes are prepared for this significant shift. Here's the timeline for retail businesses:

• 1 August 2024: Businesses with an annual turnover exceeding RM100 million must comply.
• 1 January 2025: Businesses with an annual turnover between RM25 million and RM100 million must comply.
• 1 July 2025: All other taxpayers will need to adopt the e-invoicing system.

This phased implementation ensures that businesses have enough time to adapt to the new digital invoicing requirements.

The Retail Industry: An Economic Powerhouse

The retail industry in Malaysia plays a crucial role in the country's economy, contributing significantly to GDP, job creation, and the overall economic growth. As a major sector that supports millions of consumers and small businesses, the adoption of e-invoicing promises to bring greater operational efficiency, reduce paperwork, and provide a more transparent, streamlined approach to tax collection and reporting.

When and How E-Invoices are Generated

Retailers will be required to generate e-invoices under specific circumstances. There are two primary scenarios:

1. When Customers Request an E-Invoice

When a customer requests an e-invoice, the process typically unfolds as follows:

• Data Collection: The retailer collects the customer’s Tax Identification Number (TIN) or IC number.
• Invoice Generation: The retailer enters the data into their POS system and submits it to IRBM for validation.
• IRBM Validation: If no issues are found, both the retailer and the customer receive a notification of the validated e-invoice.
• E-Invoice Delivery: The retailer sends the e-invoice to the customer, which includes a QR code linking to the MyInvois portal. The customer can view the validated e-invoice on the portal.

2. When E-Invoices Aren’t Requested

If the customer doesn’t request an e-invoice, retailers will continue to provide regular receipts either paper or electronic just as they do today. The retailer consolidates these receipts on a monthly basis, and this consolidated receipt serves as proof of income.

3. E-Invoice Rejections & Amendments

If there is a need to amend or reject an e-invoice, the following timelines apply:

• 72-Hour Window: Both customers and suppliers have 72 hours to request changes or reject the invoice after it’s been issued.
• Post-72 Hours: After this period, any necessary changes can only be made by issuing a credit or debit note.

How Webtel's E-Invoicing Solution Helps Retailers

Webtel offers a trusted, IRBM-compliant e-invoicing solution that is designed to seamlessly integrate into the operations of retail businesses. Here’s how our solution can streamline your invoicing process:

• IRBM-Compliant: Our solution is fully compliant with the latest guidelines set by the Inland Revenue Board of Malaysia (IRBM).
• ERP Integration: Webtel’s e-invoicing system integrates smoothly with your existing ERP software, ensuring minimal disruption to your current workflows.
• QR Code Generation: Every e-invoice generated is equipped with a QR code that affiliates easy validation.
• Fast & Secure: Our software ensures fast, secure processing of e-invoices, reducing the time and effort spent on manual invoicing.

Summing Up

The transition to e-invoicing in Malaysia is inevitable, and Webtel’s e-invoicing solution can make this transition seamless for retail businesses. Stay ahead of the curve and ensure full compliance with Malaysia’s tax regulations with our easy-to-use, secure, and fully integrated e-invoicing platform. With Webtel’s, Malaysian retailers can not only streamline their operations but also contribute to a more transparent and efficient tax ecosystem in the country.