GoSenang - Maximize Efficiency with Our E-Invoicing App Compliant with LHDN Legislation

What Is An Electronic Invoice In Malaysia, And What Is It Used For?

An e-invoice in Malaysia is a digital commercial document that reflects the sale of goods or services. To know what an electronic invoice is, it is essential to be clear that it is a digital version of a paper invoice, so both have the same legal effects and must comply with a series of mandatory requirements and data.

When we create an electronic invoice, we generate a digital file that, like any ordinary or “normal invoice,” serves as legal proof of purchase or sale that we can share over the Internet using company formation in Malaysia

What is the electronic invoice for?

Like any other invoice, an electronic invoice documents that a purchase or sale transaction has been carried out correctly, thus giving legal and fiscal validity to a commercial transaction. We can document this transaction digitally with an electronic invoice since it is generated and transmitted electronically, allowing professionals to streamline their processes. For more info, please visit https://gosenang.com/

E- invoicing in Malaysia is especially useful when we must prove a commercial transaction in a digital environment, such as an invoice addressed to a public administration, justifying an expense electronically, or sharing our invoices with the Treasury through its electronic office.

In addition to having several benefits, such as saving time and advantages in terms of taxes, it should be noted that electronic invoicing will soon be mandatory for self-employed workers and SMEs.

Make the most of our e-invoicing application: compliant with LHDN regulations.

In today’s fast-paced business world, manual processes are a thing of the past. Our state-of-the-art e-invoicing application allows you to streamline your payment process to ensure compliance with LHDN (Lembaga Hasil Dalam Negeri) regulations. Here’s how our app can change your invoicing system:

Key benefits:

Full LHDN compliance: Rest assured that all invoices are in compliance with Malaysian tax authorities, and avoid any penalties or errors.

Automated Invoicing: Automate your system to send invoices directly, eliminating the need for manual entry and reducing errors.

Instant Delivery and Processing: No more waiting for mailing delays or manual delivery—instantly send automated invoices and track real-time progress.

Cost savings: Save on printing, postage, and storage costs with a complete digital invoice, all while speeding up your cash flow.

Seamless Integration: Our application will quickly integrate with your existing accounting system to simplify the invoicing lifecycle.

Faster payment: With faster invoices and automatic reminders, you will pay your bills faster, improving the cash flow of your business.

Data Security: Your data is protected with high encryption, ensuring that all invoice information is secure and confidential.

What Requirements Must Electronic Invoices Meet?

 T1he Ministry of Economic Affairs and Digital Transformation and the Treasury put out to public consultation the regulations that will govern the future obligation to issue electronic invoices in all transactions between companies.

The regulation has not yet been approved, but the general requirements that must be met for both the invoicing programs used by self-employed workers and SMEs to issue their invoices and the electronic invoices themselves to be legal have been outlined.

Pending the approval of this regulation, the elements that an electronic invoice must contain to be legal from 2024 or 2025 will be:

• Issued by the AEAT billing program or certified software: according to the regulations put out for public consultation, for an electronic invoice to be legal, the company must have issued it through a computer system that meets the requirements established by this same regulation for billing software, such as the one we offer at Quipu. There is also the option, for some cases in which very few invoices are issued or in a very isolated manner, of using the computer application that the tax authority will make available for this purpose.
• Containing an alphanumeric identification code and a QR code: to be legal, these electronic invoices must include an identification code and a QR code formed by the technical and functional specifications established by Ministerial Order by the Treasury.
• Ensuring the integrity, authenticity, and traceability of recorded data: these three keys can be met through different elements that the regulation will establish once approved. Some of them could be the digital fingerprints of the content, the use of QR codes that facilitate the capture and digitalization of printed information, the standardization of data formats, or the use of digital signatures.
• Use a format that ensures digital access to the electronic invoice for its recipients: recipients must be able to read, copy, download, and print invoices easily. Access to the electronic invoice must be maintained for at least four years.
• Include the other mandatory elements that the billing regulations already establish for any invoice: these data that electronic invoices must include in the same way as conventional invoices are invoice number, issue date, the tax information of the issuer and recipient, concept, tax base; tax rate; total amount and information from the commercial register if you are a company.