What is LHDN e-Invoicing in Malaysia?

LHDN e-Invoicing is Malaysia's mandatory electronic invoicing system where businesses must submit invoices digitally to IRBM (LHDN) for validation. Starting 2024-2025, businesses must issue e-invoices through MyInvois portal or API integration for all B2B, B2C, and B2G transactions.

When is e-Invoicing mandatory in Malaysia?

e-Invoicing rollout: August 2024 for companies with revenue >RM100M, January 2025 for revenue >RM25M, and July 2025 for all remaining businesses. All taxpayers must comply by July 2025 regardless of revenue size.

How does e-Invoicing affect HR and payroll?

e-Invoicing impacts HR in three areas: 1) Employee expense claims require e-invoice documentation, 2) Staff reimbursements need proper e-invoice trail, 3) Payroll-related vendor payments (training, recruitment) must have e-invoices for tax deduction.

What transactions require e-Invoices?

All commercial transactions require e-invoices: sales to businesses (B2B), sales to consumers (B2C), government transactions (B2G), and self-billing for purchases. This includes goods, services, and any taxable supplies.

What is the MyInvois portal?

MyInvois is LHDN's official e-Invoice portal at myinvois.hasil.gov.my. Businesses use it to: submit e-invoices, validate invoices received, search invoice history, and manage cancellations. API integration is available for automated systems.

What information is required on an e-Invoice?

Required fields: Seller/buyer TIN (tax identification number), invoice date and number, item description, quantity, unit price, tax amount (SST if applicable), total amount, and MSIC code (business activity). Additional fields for specific transaction types.

Can I still issue paper invoices?

After your mandatory implementation date, paper invoices are no longer valid for tax purposes. However, you can provide a printed copy of the validated e-invoice to customers. The e-invoice must be submitted to LHDN first for validation.

What are the penalties for e-Invoice non-compliance?

Non-compliance penalties under Income Tax Act 1967: Fine of RM200 to RM20,000 per offense, or imprisonment up to 6 months, or both. Repeated offenses face higher penalties. Invoices without e-invoice validation may be disallowed for tax deductions.

How do I register for e-Invoicing?

Register at myinvois.hasil.gov.my using your MyTax login. Complete: company profile setup, authorize representatives, configure API (if using), and test in sandbox environment. LHDN recommends registering 3-6 months before your mandatory date.

Does HavaHR integrate with e-Invoicing?

HavaHR helps track employee expense claims that require e-invoice documentation. Staff can attach validated e-invoices to claims, ensuring proper audit trail for tax-deductible expenses. Integration with accounting systems available for seamless e-invoice flow.

Malaysia-compliant guide

LHDN e-Invoicing Malaysia 2025: Complete Guide for HR & Payroll Teams

Understanding Malaysia's mandatory e-Invoice system and its impact on HR operations

Direct answer

LHDN e-Invoicing is Malaysia's mandatory electronic invoicing system effective from 2024-2025. All businesses must submit invoices digitally via MyInvois portal. For HR: employee expense claims need e-invoice documentation, staff reimbursements require proper e-invoice trail. Timeline: >RM100M (Aug 2024), >RM25M (Jan 2025), all others (Jul 2025).

This comprehensive guide covers LHDN e-Invoicing requirements, implementation timeline, and how it specifically affects HR and payroll operations in Malaysian businesses.

Key facts

High-signal points for buyers comparing options.

Phase 1

Aug 2024 (>RM100M)

Phase 2

Jan 2025 (>RM25M)

Phase 3

Jul 2025 (All)

Portal

myinvois.hasil.gov.my

Validation

Real-time by LHDN

Format

XML / JSON

Proper documentation for tax-deductible expenses

Streamlined employee expense claim process

Audit-ready expense records

Reduced manual invoice verification

Platform

What HavaHR brings together

Payroll, people operations, statutory calculations and HR documents in one workflow built for Malaysian SMEs.

e-Invoice attachment for expense claims

Validated invoice tracking

Expense claim audit trail

Vendor invoice management

Tax deduction documentation

Integration with accounting systems

Compliance status monitoring

Report generation for audits

Comparison

Compare the important differences quickly

Implementation Phase	Revenue Threshold	Mandatory Date
Phase 1	>RM100 million	1 August 2024
Phase 2	>RM25 million	1 January 2025
Phase 3	All remaining taxpayers	1 July 2025

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