Malaysia is now moving all businesses—large or small toward mandatory e-Invoicing through the LHDN MyInvois system. Whether you issue invoices in Excel, Word, PDF, or a legacy accounting system, you will soon need to send every invoice to LHDN for validation before your customer receives it.
For many SMEs, this shift feels overwhelming. But it doesn’t have to be. With the right setup, e-Invoicing can simplify your workflow, reduce errors, and protect your business from costly compliance mistakes.
This guide combines everything you need to know—from why e-Invoicing matters, the risks of delaying, and how to get started with a compliant system like Odoo.
What Is Malaysia's E-Invoicing Requirement?
LHDN requires all businesses to issue invoices, credit notes, and debit notes through MyInvois. Instead of sending invoices directly to customers, you must first send them to the government system for validation.
Once approved, MyInvois returns a Unique Identification Number (UIN) and QR code that verifies your invoice.
This affects:
- SMEs
- Enterprises
- Freelancers
- Online sellers
- Retail, wholesale, services, F&B, manufacturing—everyone
No business is exempt.
Why E-Invoicing Matters: The SME Reality
If you're still using manual invoices, spreadsheets, or non-compliant software, these are the risks:
1. Invoice Rejections
Incorrect formats and missing fields mean MyInvois will reject your invoice, delaying your customer’s payment cycle.
2. Cash Flow Disruptions
Rejected or delayed invoices = delayed collections = cash crunch.
3. Extra Work Fixing and Resubmitting
Your team will spend hours troubleshooting errors instead of focusing on the business.
4. Exposure to Tax Penalties
LHDN can enforce penalties for:
- Late submissions
- Missing UIN
- Incorrect data
- Non-compliant invoice formats
5. Compatibility Problems
Many SMEs don’t realize:
- POS systems cannot generate e-invoices directly
- Excel/PDF invoices will no longer be valid
- Legacy software might not integrate with MyInvois
Malaysia’s E-Invoicing Timeline (Simple Explanation)
The start dates depend on your annual revenue:
- Above RM100 million → Started on 1 August 2024
- RM25 million – RM100 million → Starts 1 January 2025
- RM5 million – RM25 million → Starts 1 July 2025
- RM1 million – RM5 million → Starts 1 January 2026
- Below RM1 million → Starts 1 July 2026
By mid-2026, all Malaysian businesses must be using e-invoicing.
The Deadlines Are Approaching Fast
LHDN has clearly stated that e-Invoicing will roll out in phases. Some deadlines have already kicked in, and the rest will follow soon.
Waiting too long increases the risk of:
- Rushed implementation
- Costly last-minute fixes
- Incorrect setups that must be redone
The longer you wait, the higher the penalties and operational risk.
Penalties for Not Following Malaysia’s E-Invoicing Rules
Businesses must take this mandate seriously because not complying can lead to strict penalties.
Under Section 120(1)(d) of the Income Tax Act 1967, IRBM can enforce the following punishments for failing to issue, submit, or maintain proper e-invoices:
✔ Fine: RM200 to RM20,000 per offence
Every mistake — such as failing to issue an e-invoice, issuing it late, or providing incorrect data — counts as a separate offence.
✔ Imprisonment: Up to six months per offence
Individuals responsible (including business owners, directors, or staff managing invoices) may face up to six months jail time.
✔ Both fine and imprisonment
For serious or repeated offences, the court may impose both penalties.
Because the fines and jail terms apply per instance, repeated non-compliance can quickly lead to high penalties and legal consequences. This is why early preparation is crucial.
How Odoo Makes E-Invoicing Simple & Fully Compliant
Odoo is one of the most recommended systems for Malaysian SMEs adopting e-Invoicing because it provides an end-to-end workflow aligned with MyInvois requirements.
With the right onboarding, you get:
✔ End-to-End E-Invoicing Workflow
Issue → Validate with LHDN → Send to customer automatically.
✔ Malaysia-Ready Fields & Templates
Supports:
- SST fields
- UIN
- QR code
- LHDN data structure
✔ Clear Approval Flow & Audit Trail
Your finance team gains full visibility—no more manual mistakes.
✔ Integrations for All Business Types
Retail, wholesale, manufacturing, services, F&B—Odoo adapts easily.
✔ Local Malaysian Support
Implementers who know MyInvois, LHDN requirements, and SME workflows.
✔ “Pay One Time, Free for Life” (Free ONE App Package)
Affordable, SME-friendly onboarding designed specifically for compliance—and you get a world-class e-invoicing software free for life.
What Happens During Onboarding?
Our onboarding process is designed to reduce downtime and accelerate compliance:
1. We Review Your Current Invoicing Workflow
Every SME has a unique process—POS, quotations, credit notes, recurring invoices, projects, etc.
2. We Configure Odoo for LHDN MyInvois
Includes:
- API setup
- Mapping invoice fields
- Testing submissions
- Ensuring required data is captured
3. We Train Your Team
So your staff can issue compliant e-invoices instantly.
4. We Provide Ongoing Support (Local, Malaysia-Based)
You're not left alone after setup.
Why You Shouldn't Wait Until the Last Minute
Here’s what usually happens to companies that delay:
- They scramble for a solution weeks before the deadline
- They get non-compliant setups that break later
- Their invoices get rejected due to missing data
- Their finance team panics
- They overspend due to rushed implementation
And the worst part?
LHDN penalties apply even if the mistake was not intentional.
Who Is This For?
This e-Invoicing solution is designed for:
- SMEs switching from manual invoicing
- Companies using outdated or incompatible accounting tools
- Retailers and wholesalers with high invoice volume
- Service businesses handling recurring billing
- F&B outlets that need POS + e-invoice integration
- Startups that want a future-proof system
If your goal is to avoid penalties, reduce manual work, and ensure smooth operations, this is the right time to act.
Why Businesses Choose Wiz.Asia as Their E-Invoicing Partner?
Beyond implementation, businesses choose us because:
- We are an official Odoo Partner
- We provide Malaysia-localized implementations
- We ensure MyInvois-compliant workflows
- We include local support—no overseas handovers
- We offer affordable, SME-friendly onboarding
- We have helped dozens of companies transition with ease
Our onboarding packages are built for SMEs that want compliance without complexity.
Take Action Before It Becomes a Problem
E-Invoicing is not optional.
The earlier you prepare, the less you risk:
- Invoice rejections
- Cash-flow disruptions
- Operational downtime
- Penalties from LHDN
Don’t wait for LHDN to come knocking.
Secure Your E-Invoicing Onboarding Now
Slots are limited each month due to onboarding capacity.
👉 Book your appointment now:
Get compliant once, and stay compliant for life.
Watch This Walk-through Video to Understand
E-Invoicing Better
Make invoicing easy so you don't miss deadlines again.
This video explains the e-invoice mandate in Malaysia in an easy and practical way — perfect for SMEs, finance teams, and business owners.