E-Invoice Solution For Malaysian Businesses: Simplifying Compliance with New Mandates
If you’re a Malaysian business trying to navigate the new e-invoicing mandates, we are here to help. Our e-invoice solutions are designed to ease your transition while enhancing efficiency across your finance processes.
E-invoice Mandates in Malaysia
The Inland Revenue Board of Malaysia (IRBM), or Lembaga Hasil Dalam Negeri (LHDN), now requires businesses to switch to electronic invoicing (e-invoicing). This means creating and submitting invoices as e-invoices instead of using paper or emailing PDFs.
There are two ways to create and process e-invoices, depending on your invoice volume:
Step 1 Create Your Invoice: Just like before, you create the invoice on your system.
Step 2 – Sending for Approval: You have two options:
- Manual (MyInvois portal): Perfect for smaller businesses. You log in to the MyInvois portal, run by the Inland Revenue Board (IRBM), and manually enter the invoice details for each and every invoice.
- Automated (API): For higher volume of invoices, you can use e-invoicing software that connects to the IRBM system via an API. This software automatically sends your invoice data to the IRB for approval.
Step 3 – Government checks it: The IRBM reviews the invoice electronically, if all is good, a confirmation is generated for both you and the buyer. You’ll also get a unique ID and a QR code for the invoice.
Step 4 – Deliver the invoice: Now you send the approved invoice with the QR code to your buyer.
Finance Automation with Our e-Invoice Solution
Our eInvoice solution, powered by our Compliance-as-a-Service (CaaS) engine, can automate these steps for you:
- Invoice creation: Continue creating invoices on your current system.
- Data Integration: We integrate with your system to take the invoice data in any format
- CaaS Engine: Automatically converts and submit invoices to the IRBM for approval, and send them back to you and your customer. Ensuring compliance with all regulatory requirements.
We handle all the technical aspects of creating and sending e-invoices, allowing you to focus on your business.
Finance Automation with Our e-Invoice Solution.
Finance Automation with Our e-Invoice Solution
Our eInvoice solution, powered by our Compliance-as-a-Service (CaaS) engine, can automate these steps for you:
- Invoice creation: Continue creating invoices on your current system.
- Data Integration: We integrate with your system to take the invoice data in any format
- CaaS Engine: Automatically converts and submit invoices to the IRBM for approval and send them back to you and your customer. Ensuring compliance with all regulatory requirements.
We handle all the technical aspects of creating and sending e-invoices, allowing you to focus on your business.
Your E-Invoice Solution Partner
We are the perfect partner for Malaysian businesses looking to comply with the new e-invoice mandates, here’s why:
- Malaysian e-Invoicing Experts: We house some of the world’s leading e-invoicing practitioners. Our team’s deep understanding of the Malaysian mandate and extensive experience in implementing e-invoicing solutions ensures a smooth transition for your business.
- Works with any system: There is no need to change your existing software our platform is software agnostic – designed to work with any platform or legacy system
- Track your invoices: You can see the status of your invoices in real-time through our online portal and get reports of all your processed invoices
- Faster processing: Your invoices will be approved and delivered quicker.
- Future-proof: Our solution is built to adapt to future e-invoicing requirements meaning you will always stay ahead of the game.
- Cost-effective: We offer a subscription-based model with a one-time fee for setup.
Government-Certified eInvoicing Solutions
We are a certified Peppol Access Point provider in Australia, New Zealand, Singapore, Japan and Malaysia. This international recognition demonstrates our commitment to providing best-in-class e-invoicing solutions that meet the highest global standards.
Trusted by Leading Businesses in Southeast Asia and Australia
Our team has over 30 years of experience across eInvoicing, finance and procurement automation and we’ve been trusted partners to a number of leading organisations across Southeast Asia.
Getting Started
We’ll guide you through every step to ensure a smooth and efficient onboarding process that minimises both time and cost. Here’s what to expect:
- Quick Start: Establish our partnership and sign a non-disclosure agreement (NDA).
- Requirements Analysis: We’ll work closely with you to understand your specific needs.
- Process Mapping: We’ll analyse your current processes and tailor our e-invoicing solution to fit seamlessly.
- Implementation: Our team will handle the setup and get your e-invoicing solution up and running.
What is eInvoice?
Sending a PDF invoice is, unfortunately, not an e-Invoice. The format of e-Invoice is not pdf, doc, jpg or even email – why? Well let’s compare the difference, when you send an PDF invoice, the invoice is delivered in a digital format (email as opposed to post) and when your customer receives it they still have to manually review the invoice, re-key the invoice information into their own system and then start to process it.
eInvoicing is the system-to-system exchange of invoice data, where invoices are sent directly from a supplier to a buyer – no manual data entry required at either end of the invoice.
Regardless of how your suppliers are sending their invoices, our range of eInvoicing services ensures that we can drive the highest level of automation possible.
An e-Invoice acts as a digital record of a transaction between a seller and a buyer, replacing the need for paper or electronic documents like invoices, credit notes, and debit notes. It includes essential information such as seller and buyer details, item descriptions, quantities, prices before tax, taxes, and total amounts, capturing transaction data for everyday business operations.
Why Do You Need eInvoicing
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Onboard ALL of your suppliers
We provide an easy and accessible way to ensure that invoice data is captured in the most automated and efficient manner possible.
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Free up your staff to focus on value adding activities
Remove the need for manual invoice data entry and exception handing to enable your team to focus on higher value activities. Via Valtatech CAAS and Peppol Access Point service which is using API, does not require businesses to access the MyInvois portal manually and login manually. This is ideal for big volumes e-invoices using Application Programming Interface (API) connection.
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Remove the risk of invoice fraud COMPLETELY
Automated data validation checks and utilising the secure Peppol network, you never have to worry about invoice fraud again.
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Facilitate Efficient Tax Filing
Smooth integration of systems to ensure precise tax reporting and compliance,
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Digitalise Tax and Financial Reporting
Aligning financial processes with industry standards by digitalizing them
Our eInvoicing Platforms Have Processed
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Trusted By
AP Automation Solutions
Compliance as-a-Service (CaaS)
Our CaaS / InvoiceSense solutions helps businesses drive Touchless Invoice Processing by providing a cost effective, state of the art invoice data capture and validation that automates your suppliers invoice data entry regardless of how your suppliers are sending their invoices. A full-service model, we ensure that there is no manual invoice data entry or validation required from you. Helping you drastically reduce the risk of invoice fraud whilst driving automation and optimisation.
With Valtatech as service provider to comply with LHDN, taxpayers will not only get compliant with LHDN but also with Malaysian national e-invoicing initiative driven by MDEC to achieve business efficiencies by streamline their e-Invoice processes, ensuring accuracy and reducing the risk of manual errors.
CaaS
Data is validated by our Validation Engine running a series of data checks to ensure the validity of the invoice.
- Validates Supplier invoice
- Converts data into IRB format and submits with IRBM
- Receives IRBM Validation response (QR Code)
- Transfers Invoice with QR to Customer
- Cancels Invoices when required
Invoice Created in your ERP/Procure to Pay Platform
The validated invoice record is automatically created in your ERP or Procure to Pay Platform ready for processing.
Peppol eInvoicing Services - National E-Invoice Initiative (NEI) by MDEC
Peppol eInvoicing works by suppliers and buyers sending their invoices or orders directly to each other’s systems through a certified Peppol Access Point. The Access Point verifies the data on the invoice or order and then sends it on to the receiver’s certified Access Point who transmits the data into their system. This means that data is shared almost instantly into the receiver’s system without any manual data entry or manipulation required.
About Peppol eInvoicing
Over 1.2 billion Business to Business (B2B) and Business to Government (B2G) invoices are exchanged annually in Australia. The majority of these are sent either as paper invoices or PDF invoices via email. These are costly to process with manual data entry or validation usually required. The Australia Tax Office estimates that:
- Average invoice processing cost for a paper invoice is $30.87
- Average invoice processing cost for a PDF invoice is $27.67
Peppol eInvoicing is the automated digital exchange of invoice information directly between a buyer’s and supplier’s systems, removing the need for any manual data entry or validation. The ATO estimates that it can reduce the cost of processing an invoice down to $9.18.
“eInvoices are 66% cheaper to process than PDF invoices.” – Australian Taxation Office
Australia, New Zealand, Singapore, Japan and Malaysia have all adopted a globally recognised standard for sending eInvoices and eOrders known as Peppol (Pan-European Public Procurement OnLine). This standard enables anyone who is part of the network to easily and safely, send eInvoices and eOrders to each other. The standard also enables a simple and accessible way for businesses to be onboarded onto the network.
There are already 200,000+ businesses across 34+ countries on the Peppol network. Valtatech has been accredited as a Peppol certified eInvoicing service provider across Australia, New Zealand, Singapore and Japan as well as Malaysia soon. Accreditation can only be achieved by meeting strict standards set by the Peppol Authorities in terms of capabilities, security, compliance and performance, so you can be confident that your data is in safe hands working with us.
Accounts Receivable Automation
Our Peppol eInvoicing Services can be utilised for the full end to end order to cash process. From receiving purchase orders into your ERP through to sending your eInvoices to your customers, all data can be exchanged in a completely automated way through our Peppol Access point and then onto your suppliers Access Points.
Reduce the time spent chasing lost, missing or late payments
Peppol eInvoicing helps in two powerful ways:
- eInvoices are validated by the network before they are sent, you actually won’t be able to send an invoice to your customer if there is data missing from the invoice that needs to be there. You can have confidence that the invoice being sent to your customers has the information it needs on it.
- eInvoices sent via the Peppol network are sent digitally, point-to-point – that means 100% of your einvoices make it to your customer’s system so that they can process the invoice. This removes the risk that your eInvoice has ended up with the wrong person, has been misplaced, or forgotten about.
Eliminate the risk of your customers falling for invoice scams
Peppol eInvoicing, by design, is safe and secure – the traffic is encrypted end-to-end so there is no chance that data is going to be intercepted once the invoice is sent. Additionally, this adds confidence and reduces risk for your customers as all buyers and suppliers in the network are validated to ensure they are who they say they are. This almost completely mitigates the risk of your invoices being caught up in an invoice scam with your customers.
Add value to your customers
The benefits for your customers to receive your invoices via Peppol are huge. This will help them reduce their cost per invoice (through time savings), effectively mitigate the risk of invoice fraud as well as give them a scalable way to work with their other suppliers. You can use this as an opportunity to provide extra value for your customer base whilst also seeing direct benefits.
