The Inland Revenue Board of Malaysia (IRBM) is implementing a new e-Invoicing system to streamline and enhance the country’s tax administration. The e-Invoicing system will replace paper invoices with digital invoices that are submitted and validated electronically. This will improve the efficiency of tax collection, reduce fraud and errors, and promote transparency in the tax system.
The e-Invoicing system will be mandatory for businesses with a turnover of RM100 million or more effective August 2024. It will be rolled out to all businesses in July 2025.
This article discusses the amendment of e-invoices in Malaysia. A crucial aspect of this amendment is the 72-hours grace period, which allows businesses to make adjustments to their e-invoices within 72 hours of issuing the original invoice. This grace period can be used to rectify any errors or discrepancies in the invoice. It is important for businesses operating in Malaysia to understand how this grace period works and how to utilize debit notes and credit notes in order to maintain accurate and compliant invoicing practices.
Here is a more detailed explanation of the 72-hours e-Invoicing grace period:
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Yes, e-Invoices can be cancelled within 72 hours of issuance. To cancel an e-inovice. the supplier / customer must submit a cancellation / rejection request to buyer / seller within 72 hours via MyInvois Portal.
No, the supplier would need to cancel the e-invoice (Refer Q1) and reissue another new e-invoice.
The cancellation / rejection request should specify the reason, which can include incorrect invoice data in any field (e.g., SST number, business registration number, any business-related information, etc).
After the 72-hours timeframe, the status of the e-Invoice will automatically change to “Valid”, and any further amendments will require a Debit/Credit Note.
No, as per IRBM guidelines, there is a 72-hours timeframe for rejection / cancellation of e-invoice. If this time is exceeded, any adjustments will require the issuance of a new invoice, debit note, credit note, or refund.