Streamline Your Malaysian Business For E-Invoicing with SQL Account
The Malaysian Inland Revenue Board (LHDN) is making e-invoice mandatory for tax purposes. SQL Account is certified to comply with these regulations, making it a seamless solution for your business. E-invoicing is being rolled out in stages, with the first group of businesses needing to be compliant by August 1, 2024. By July 1, 2025, all businesses in Malaysia, regardless of size, will be required to use e-invoices. Make the switch to SQL Account and ensure your business stays compliant with LHDN regulations.

Exciting news for SQL users! In the e-invoice era, SQL will build a feature like the current SSM power search function owned by SQL, allowing you to easily access the full SSM complete list for tax computation verification.

We’re taking this concept a step further by developing a comprehensive TIN portal. This portal will provide SQL users with a seamless experience for validating TIN numbers, enabling you to verify the accuracy of tax identification numbers with 100% accuracy through the LHDN server

How SQL Accounting Assists Your Business In Adhering To LHDN E-Invoice Requirements?

According to the guidelines as of February 9, 2024, each e-invoice must contain 35 mandatory fields and 20 optional fields, making a total of 55 fields that need to be completed for successful valid e-invoice submission. SQL Account automates this process by storing all these field records, eliminating the need for repetitive manual entry.
For every e-invoice issued, you can track its status within SQL Account, including whether it has been submitted, validated, deemed invalid, or cancelled. This enables you to effortlessly monitor the status of all e-invoices through SQL Account.

Beyond standard sales invoices, certain transactions require e-invoice, including dividends, foreign income, foreign purchases, payments to agents, and cross-border dealings. SQL Account is equipped to support and comply with these requirements in accordance with LHDN guidelines, covering:

When Do You Need To Start Implementing E-Invoicing For Your Business?
E-Invoice will be implemented in phases to ensure smooth transition. The annual turnover or revenue for the implementation of e-Invoice will be determined based on the following:
  1. Taxpayers with audited financial statements: Based on annual turnover or revenue stated in the statement of comprehensive income in the audited financial statements for financial year 2022.
  2. Taxpayers without audited financial statements: Based on annual revenue reported in the tax return for year of assessment 2022.
  3. In the event of a change of accounting year end for financial year 2022, the taxpayer’s turnover or revenue will be pro-rated to a 12-month period for purposes of determining the e-Invoice implementation date.
E-Invoice Implementation Timeline:

Targeted Taxpayers Implementation Date
Taxpayers with an annual turnover or revenue of more than RM100 million 1 August 2024
Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM100 million 1 January 2025
Taxpayers with an annual turnover or revenue of less than RM100 million 1 July 2025

LHDN E-Invoice: What Are The Penalties For Non-Compliance?

Compliance with the Malaysian Inland Revenue Board’s (LHDN) E-Invoice mandate is obligatory, and failing to adhere to it can lead to significant repercussions for your business. Here’s what you should be aware of:
Fines: Failing to comply with e-invoice regulations can result in significant financial penalties ranging from RM200 to RM20,000.
Imprisonment: non-compliance may even lead to imprisonment for a period not exceeding six months. This highlights the seriousness of the LHDN mandate.

How To Get Started With E-Invoice In Your Business?
LHDN offers businesses two methods for e-invoice compliance:
  1. MyInvois Portal – The MyInvois Portal is a platform for taxpayers who are unable to issue an e-invoice through their own system or who do not have a system for issuing e-invoices. By logging in via the MyTax Portal, they can utilize the MyInvois Portal to fulfill their e-invoice obligations in accordance with the rules and requirements. Taxpayers can manually fill up all the mandatory fields, submit, view, cancel, or reject invoices, among other actions.
  2. SQL Accounting Software – Recognized as a leading accounting and business solution in Malaysia, trusted by over 270,000 businesses. Our software is user-friendly, supporting e-invoices and ensuring compliance with Malaysia’s Sales and Service Tax (SST), alongside a comprehensive suite for all your operational workflow and accounting standards.

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