Why Choosing a MDEC-Accredited Peppol Service Provider is Your Best eInvoicing Option

Malaysia has taken significant strides towards modernising its invoicing processes. eInvoicing is being mandated across all businesses over the coming months (Now till July 2025). The Malaysian Digital Economy Corporation (MDEC) has taken a lead in this transformation. They have selected the Peppol eInvoicing framework as their preferred e-Invoicing method. Peppol is short for Pan-European Public Procurement OnLine. It’s a network facilitating the secure and fast exchange of electronic documents globally.

“The Peppol eInvoicing framework is considered to be the most suitable for implementation in Malaysia due to its maturity, interoperability, and well-governed standards. It is also the most widely used eInvoicing framework globally, adopted by more than 20 countries.” MDEC.

As Malaysia’s Peppol authority (MDEC), they will be responsible for managing the Peppol standards. They will ensure it meets the needs for Malaysian businesses to use e-Invoicing. They have already adapted the Peppol International Billing Standard (PINT) for Malaysia (MY-PINT). The MY-PINT standard, tailored for Malaysian, ensures seamless integration with the global network.

As a local Peppol Authority they have the responsibility to accredit Access Point Providers. Providers partner with businesses to get them connected to the Peppol network. The Peppol network offers an effective way for businesses to comply with e-Invoicing. This post will delve into the different options for ensuring compliance with eInvoicing. Our aim is to help you make an informed decision on the best eInvoicing option for you.

Three Malaysia eInvoicing Submission Options

MyInvois Portal

The MyInvois Portal is a web-based platform provided by the Inland Revenue Board of Malaysia (IRBM). It is designed for the submission and validation of e-Invoices for businesses. You can log in to the portal, fill out the invoice details and submit them directly for validation.

The platform is easily accessible, especially for small to medium-sized businesses. There is no need for any complex technical integration or any upfront investment of any kind. Accessible to all businesses, it’s an easy way to achieve e-Invoicing compliance.

There are some limitations to the MyInvois platform though. As it involves manual data entry it is both time consuming and hence prone to human error when entering data manually. This limits its scalability, particularly for businesses with a large volume of invoices. The manual data entry is resource heavy and far slower than other automated systems. This could impact payment cycles and increase your costs over the long term. MyInvois portal does not support easier cross-border transactions, limiting its benefits for a business.

API Integration with MyInvois

Businesses can integrate their existing systems with MyInvois system directly through APIs. This is where an integration is built from your ERP or Billing system to MyInvois system. Invoices generated in your system are automatically sent to MyInvois for validation. This can be achieved in two different ways:

1. The integration goes directly to the MyInvois portal
2. The integration uses the Peppol network to send data to the MyInvois portal.

It’s important for businesses to understand the difference between these two options. There are no accreditation requirements to build a direct integration with MyInvois. The API details are publicly available and any business can offer to build it for you. Peppol Access Point Providers do need to go through an accreditation process. This checks their processes, security and staff to make sure they are reputable. MDEC is the only organisation that can accredit Peppol Access Point providers. With that in mind let’s consider the two options:

Integration goes directly to the MyInvois portal

Being an automated process it is far more efficient than manual data entry. Mitigating the risk of data entry errors and freeing up resources. An integration with MyInvois it is far better setup to handle larger volumes over data entry. It’s also more suitable for businesses with established software infrastructure.

Cost is the obvious factor here, a custom integration will cost money to setup. You’ll want to make sure you get the most for your money. There are other downsides to this option though. Your integration provider may not always stay updated with the latest regulatory changes. This can pose a compliance risk to adhere to e-Invoicing requirements. There may also be issues with security vulnerabilities and support with your provider. This could lead to data leaks or potential disruptions in service. As with the first option, there is no support for international transactions. This limits the benefits for businesses doing lots of international trade.

Integration with MyInvois using the Peppol Access Point Service Provider

Integrating with LHDN MyInvois through the accredited Peppol service providers ensures automation, security, compliance and future-proofing. You will be locally and internationally compliant with different e-Invoicing regulations. As well as freeing up core staff for value adding activities through automation. As you will be working with accredited providers you enjoy a lot of key benefits. Things like future-proofing your processes and reliability of both security and support. You also enjoy the international interoperability that Peppol offers. Countries across the region like Singapore, Australia, New Zealand, EU and Japan that have adopted Peppol.

Again, the cost of integration with the Peppol network is a consideration. With Peppol you pay to connect once and you’re connected to businesses that are already in the Peppol network. This is different to other integrations where its a one-to-one relationship. Another consideration is the dependency you will have on your provider going forward. Choose a partner to have a trusted relationship with and you will be confident they can grow with you.

Comparison Overview:

Examples:

• Small Business sending 20 invoices a month. They should use the MyInvois Portal directly. Initial costs are low but the manual entry process takes up significant time. There is also the possibility of manual data entry errors.
• Mid-Sized Company sending 500 invoices a month. They should integrate their ERP with the MyInvois Portal. This automates the process, reducing errors and saving time. They can choose to integrate directly or use a Peppol Access Point. They don’t have the resources in-house and need a reliable solution. They choose to integrate via a Peppol Access Point Provider like Valtatech.
• Large Corporation sending over 1,000 invoices a month. Again they should integrate their ERP with MyInvois directly. They have international customers and want to mitigate any future compliance risks. They choose to integrate via a Peppol Access Point provider like Valtatech.

Peppol e-Invoicing Cost Savings

eInvoicing through Peppol Access Points is not only efficient but also cost-effective. Studies show that eInvoicing can save businesses up to 66% compared to other methods. The streamlined process reduces the need for manual entry. This lowers the risk and cost associated with errors and corrections.

These cost savings are not guaranteed. Your Peppol partner should amplify these savings as part of the implementation process. They should have expertise in e-Invoicing and how to optimise your finance processes. This combination ensures you get the best possible return on your investment.

Get Ahead with E-Invoicing

IRBM E-invoicing is mandatory for businesses in Malaysia. They can stay ahead of the curve by choosing the right partner and integration option. Peppol Access Point providers offer a unique way to stay compliant and innovative. Our team of e-invoicing specialists can help you get you started.