The digital revolution is sweeping across borders, transforming how businesses operate. At the forefront of this transformation is Malaysia, which launched its e-invoicing mandate under the MyInvois framework on 1st August 2024. The LHDN e-invoicing mandate initiative, led by the IRBM e-invoicing guidelines in collaboration with the Malaysia Digital Economy Corporation (MDEC) has seen its fair share of ups and downs. Still, this bold leap into business digitization via e-invoicing is nowhere stopping.
Here we share with you a complete breakdown of 2024 e-invoicing landscape in Malaysia.
Latest Update of LHDN E-Invoicing Mandate
In just a few months since its launch, over 90.2 million e-invoices have been recorded—a testament to the rapid adoption and the program’s robust design.
Breaking this down further –
- 70% of e-invoices originated from Phase 1 taxpayers—large enterprises with revenue exceeding RM100 million.
- The remaining 30% came from smaller businesses in Phases 2 and 3, who voluntarily adopted e-invoicing well ahead of their mandatory deadlines.
This voluntary early adoption by smaller businesses showcases the enthusiasm of smaller businesses voluntarily stepping into this new era. It also reflects their recognition of the advantages of e-invoicing—streamlined operations, reduced errors, and faster transaction cycles.
This early adoption by Phase 2 and Phase 3 taxpayers speaks volumes about the trust and excitement surrounding Malaysia’s e-invoicing mandate. These businesses see the value of being ahead of the curve, embracing automation and compliance before the mandatory deadlines.
Which Modes Are Being Used For E-Invoicing
The adoption of LHDN e-invoicing in Malaysia has been supported by a variety of submission modes, reflecting the flexibility of the MyInvois framework. Businesses are leveraging different methods to integrate this system into their workflows, with a strong preference for API-based solutions.
Here’s the breakdown –
1. API Submissions
- A significant majority of e-invoices are being recorded via Application Programming Interfaces (APIs).
- Among these, 69% of e-invoices are directly integrated with ERP systems, highlighting the preference for seamless, automated solutions that reduce manual effort and ensure data accuracy.
- Another 30% are submitted through intermediaries, such as service providers or third-party platforms like ComplyroboTM, offering businesses additional flexibility to manage their compliance needs.
2. Portal Submissions
- A smaller percentage of businesses are submitting e-invoices directly through the MyInvois portal. This mode is typically utilized by smaller businesses or those with fewer invoices, as it doesn’t require ERP integration or external tools.
Read in-depth:- E-invoicing Integration in Malaysia – Find the right fit for your business
Innovation Through QR Codes
The integration of QR codes in the MyInvois system and as per the IRBM e-invoicing guidelines has added another layer of efficiency. The QR code automatically populates the buyer’s master data upon scanning, and this is based on the taxpayer’s profile. This ensures error-free e-invoice creation and enhances business relationships. Such innovations highlight Malaysia’s commitment to leveraging technology for ease of doing business.

Timeline and Strategic Soft Landing
Change is never easy, especially on a national scale. Recognizing this, a six-month relaxation period was introduced to give businesses time to adapt and align their operations with LHDN e-invoicing.
The mandate is currently applicable to businesses with revenues exceeding RM 100 million, with a gradual rollout of 2nd phase for smaller businesses by July 2025. This phased approach ensures inclusivity, allowing businesses of all sizes to transition smoothly into e-invoice compliance Malaysia.
Malaysia’s Pioneering Spirit
What makes Malaysia’s approach stand out is the collaboration. MDEC, LHDNM, service providers, and the business community have come together to create an ecosystem that supports both compliance and growth. This is not just about ticking regulatory boxes; it’s about creating opportunities for efficiency, transparency, and global competitiveness.
E-invoicing Malaysia is setting an example for others to follow—a nation uniting innovation and compliance to pave the way for a digital-first future.
Benefits Beyond Compliance
E-invoicing offers far-reaching benefits-
- Operational Efficiency – Automating invoice generation and submission reduces time spent on administrative tasks.
- Tax Accuracy – Instant validation ensures e-invoice compliance Malaysia with tax regulations, minimizing disputes.
- Enhanced Transparency – A digital audit trail fosters trust and accountability.
For Malaysia, this initiative is more than a domestic success. It’s a step toward global competitiveness, positioning the country as a digital leader in Southeast Asia.
Looking Ahead
As the adoption of e-invoicing expands, Malaysia is setting the stage for long-term transformation. The success of the 90.2 million e-invoices is just the beginning. With every business onboarded, Malaysia moves closer to a future where digital tools empower businesses to grow, innovate, and thrive.
Malaysia’s e-invoicing journey is a powerful reminder that when innovation and collaboration converge, extraordinary milestones can be achieved.