What Is an E-Invoice Intermediary in Malaysia and Should You Use One?

Introduction: A New Concept for Malaysian Businesses

By now, most business owners in Malaysia are well aware that e-Invoicing is no longer optional. With LHDN’s phased implementation already underway, the focus has shifted from “what is e-Invoicing?” to “what’s the most efficient way to stay compliant?”

For many SMEs, the question now is whether to submit e-Invoices manually via the MyInvois Portal, or streamline the process through an e-Invoice intermediary in Malaysia — a licensed provider that connects your system directly to LHDN using MyInvois API integration.

In this guide, we’ll break down what an e-Invoice intermediary actually does, who needs one, and how it can save your business time, effort, and potential compliance headaches.

What Is an E-Invoice Intermediary?

An e-Invoice intermediary in Malaysia is an LHDN-approved third-party provider that connects your business system (POS, ERP, or accounting software) to the MyInvois platform using API integration.

Instead of submitting invoices manually through the MyInvois Portal, businesses can automate the process using an intermediary — making compliance with LHDN’s e-Invoice system faster, more reliable, and error-free.

Why Use an E-Invoice Intermediary?

For many businesses in Malaysia, especially those handling high volumes of transactions, manually submitting each e-Invoice through the MyInvois Portal is simply not practical.

This is where an e-Invoice intermediary becomes essential.

An intermediary simplifies the entire process by handling the technical integration with LHDN’s MyInvois system on your behalf. Instead of navigating complex API documentation or logging into multiple platforms, you can submit e-Invoices directly from your existing software — whether it’s a cloud accounting system, POS, or ERP platform.

Here’s what makes an e-Invoice intermediary in Malaysia valuable:

• Automated Submission via API
Your invoices are sent instantly to MyInvois without manual data entry.
• Real-Time Validation Tracking
Get immediate status updates (Success/Fail) so you can resolve issues quickly.
• Error Reduction
Intermediaries ensure your invoice data is correctly structured to meet LHDN’s e-Invoicing standards, reducing the risk of rejections.
• Secure Recordkeeping
Every submitted e-Invoice is stored in a centralized, secure system — making audit prep and compliance easier.
• Time & Resource Savings
Free up your team from repetitive tasks and reduce reliance on internal IT resources.

Whether you're a growing SME or a large enterprise, using a trusted e-Invoice intermediary with MyInvois API integration gives you a faster, more efficient, and scalable way to stay compliant with Malaysia’s evolving e-Invoicing requirements.

MyInvois Portal vs. Intermediary: What’s the Difference?

When it comes to submitting e-Invoices in Malaysia, businesses have two main options: using the MyInvois Portal provided by LHDN, or integrating with a system through an e-Invoice intermediary.

MyInvois Portal
The MyInvois Portal is a free platform designed for manual entry, making it suitable for small businesses or freelancers who issue a low volume of invoices each month. However, it requires users to log in, fill out forms, and submit each invoice individually — which can be time-consuming.

Intermediary
On the other hand, an e-Invoice intermediary with MyInvois API integration allows for a seamless and automated process. It connects directly to your business systems (such as NiagaPlus, accounting software, or POS) so you can generate, submit, and track e-Invoices in real time — without switching platforms or repeating data entry.

This approach is ideal for businesses that want to save time, minimize errors, and maintain a scalable e-Invoicing workflow.

Feature MyInvois Portal E-Invoice Intermediary (e.g. via NiagaPlus

Submission Method

Manual entry on MyInvois Portal

Automated via API integration

Best For

Low-volume users (freelancers, small businesses)

Medium to high-volume users (SMEs, large businesses)

Data Entry

Must enter each invoice manually

Pulled automatically from your system

Real-Time Validation

Requires checking status manually

Status updated in real-time

Software Integration

Not integrated

Fully integrated with accounting/POS/ERP systems

User Experience

Requires switching between systems

Seamless workflow in one platform

Time Required

Slower, repetitive for frequent invoicing

Fast and scalable for growing businesses

Compliance

Compliant (but manual)

Compliant and audit-ready with full records

Examples

Direct login to LHDN’s MyInvois Portal

NiagaPlus, SQL, AutoCount, and other approved providers

Who Should Use an E-Invoice Intermediary?

An e-Invoice intermediary is not mandatory for every business — but it’s highly beneficial for certain types of companies in Malaysia, especially as e-Invoicing becomes mandatory under LHDN guidelines.

You should consider using an e-Invoice intermediary in Malaysia if:

• Your business issues high volumes of invoices regularly
Manual data entry on the MyInvois Portal can be time-consuming and error-prone. An intermediary automates the process, saving your team valuable time and reducing the chance of human error.

• You want to reduce manual work and human errors
Automated e-Invoice submissions help ensure accurate formatting and lower the risk of invoice rejection by LHDN.

• You’re already using accounting, POS, or ERP software
If your current system supports MyInvois API integration — such as through NiagaPlus — an intermediary enables seamless e-Invoice creation and submission directly from your existing workflow.

• You need centralized access and better recordkeeping
Intermediaries often provide centralized dashboards with searchable records, downloadable PDFs, and real-time invoice status updates. This simplifies compliance and makes audits easier.

❌ You may not need an intermediary if:

You issue only a few invoices per month
If you’re a freelancer or a small business with low invoice volume, the MyInvois Portal may be sufficient for your needs.

You prefer handling submissions manually
Some business owners prefer full control and don’t mind logging into the portal to manage each submission. If you’re comfortable with this process, an intermediary may not be necessary.

For most SMEs in Malaysia, using an e-Invoice intermediary is a smart move. It not only streamlines compliance with LHDN’s MyInvois system, but also boosts operational efficiency and positions your business for scalable growth.

Benefits of Using an E-Invoice Intermediary

Using an e-Invoice intermediary in Malaysia offers more than just convenience — it helps businesses meet compliance requirements efficiently while improving operational workflows.

Here are the key benefits:

1. Faster Submission via MyInvois API

Manually submitting invoices through the MyInvois Portal can be time-consuming, particularly if your business issues multiple invoices daily.

An intermediary enables real-time submission via direct API integration — invoices are transmitted to LHDN instantly in the correct format, without needing to switch platforms or re-enter data.

Ask yourself: If you had to issue 50 invoices tomorrow, how long would it take using the manual portal?

With an intermediary, the process runs quietly in the background — invoices are auto-generated from your existing business system and sent to LHDN with minimal user input.

2. Built-In Compliance and Validation Rules

Malaysia’s e-Invoice system comes with strict formatting and data validation requirements.

If even one field is missing or incorrect, your invoice may be rejected.

E-Invoice intermediaries help solve this by applying LHDN’s validation logic before submission. Fields are auto-checked for accuracy, required information is flagged, and common errors are prevented — drastically reducing failed submissions and the need for manual troubleshooting.

It’s like having a digital tax assistant that ensures everything is correct before you hit “Send.”

3. Stronger Audit Trail and Full Traceability

All invoice submissions made through an intermediary are recorded automatically. This includes timestamps, invoice IDs, validation status, and any error logs.

These records are stored securely and can be accessed at any time, giving your business a strong audit trail for tax reviews or compliance inspections.

Picture this: It’s audit season, and LHDN requests proof of invoice validation. Will you be digging through spreadsheets — or accessing it in a few clicks?

Having these records in one place eliminates uncertainty and saves hours of backtracking.

4. Reduces Errors and Resubmission Work

Manual invoice creation is prone to human error — from mistyped customer info to missing tax amounts. Every correction means time lost and potential delays in payment or reporting.

Intermediaries reduce this risk by automating the data flow between your accounting, POS, or ERP system and the LHDN portal. This automation not only speeds up the process but ensures data accuracy — meaning fewer rejected invoices and better consistency in your financial records.

How Niagawan (NiagaPlus/NiagaPos) Acts as an E-Invoice Intermediary in Malaysia

Niagawan — through its solutions NiagaPlus (for accounting and inventory) and NiagaPos (for mobile POS and microbusinesses) — operates as a registered e-Invoice intermediary under Malaysia’s LHDN framework. This means it’s been certified to communicate directly with the MyInvois system via API integration, eliminating the need for businesses to manually log in, copy data, or deal with file uploads on the MyInvois Portal.

Instead of managing your e-Invoice tasks manually, Niagawan enables a fully automated and secure submission process — directly from your business system to LHDN’s servers.

So what does this look like in practice?

When you issue any type of invoice in Niagawan — whether it's a standard sales invoice, a credit note (for refunds), or even a self-billed invoice (Bil Kendiri) for payments to freelancers or non-registered individuals — the platform instantly packages your data in the correct format, submits it to LHDN, and retrieves the validation response. No separate logins. No manual formatting. No guesswork.

Each e-Invoice submission includes:
Real-time validation status (Success or Fail)
• A preview of the validated invoice issued by LHDN
• A direct link to the official MyInvois verification page
• A centralized archive of all invoice submissions — searchable and exportable anytime

This gives you complete visibility and audit-readiness in just a few clicks.

For businesses dealing with dozens (or even hundreds) of transactions every month, this seamless experience removes repetitive tasks, ensures full compliance with LHDN’s regulations, and drastically cuts down on human error — all while giving you peace of mind that your tax obligations are being met automatically in the background.

Whether you're running a retail outlet, managing a service-based company, or paying commissions to dropship agentsNiagawan adapts to your needs and keeps your e-Invoicing flow running smoothly.

Real-Life Examples: How Niagawan Makes E-Invoicing Simple

Still wondering how an e-Invoice intermediary actually fits into your day-to-day operations?

Whether you're dealing with freelancers, managing high-volume sales at a retail stall, or issuing refunds to customers — the process of creating, submitting, and tracking e-Invoices can quickly become overwhelming if done manually.

This is where Niagawan, through NiagaPlus and NiagaPos, proves invaluable.

By automating your e-Invoicing workflow and integrating directly with LHDN’s MyInvois API, Niagawan helps you avoid mistakes, reduce submission time, and ensure compliance — no matter what type of transaction you're handling.

Let’s look at some common business scenarios and how Niagawan helps simplify each one.

1. Paying a Freelancer for Design Work (Self-Billed Invoice)

You just hired a freelance designer to create promotional materials for your business. They’re not registered with LHDN’s e-Invoice system and can’t issue an invoice.

Instead of struggling with the MyInvois Portal, you simply open NiagaPlus, select “Self-Billed Invoice,” key in their MyKad or passport number, and submit.

Within seconds, Niagawan validates and sends the e-Invoice to LHDN — giving you a compliant invoice with a QR code, a status, and an official MyInvois verification link.

2. Daily Retail Sales at a Pasar Malam Stall (High Volume Transactions)

Using NiagaPos, you record dozens of transactions daily at your stall.

With Niagawan’s integration, you don’t need to manually convert each sale into a formal invoice.

At the end of the day, your system automatically batches and submits e-Invoices to MyInvois via API — all validated in real-time, all stored securely.

You stay compliant without lifting a finger beyond your usual POS workflow.

3. Issuing Refunds or Credit Notes to Customers

Your business occasionally processes refunds.

With Niagawan, you can generate a credit note directly from the original invoice.

The system formats it correctly, auto-links it to the validated invoice, and submits it instantly to LHDN.

There’s no need to calculate adjustments manually or worry about missing steps in the refund process.

4. Submitting Invoices to Corporate Clients or Government

Some clients require validated e-Invoices before they make payment — especially Government-Linked Company (GLCs) or government-linked entities.

With Niagawan, you can preview the LHDN-validated invoice, download it with its QR code and reference number, and send it directly to your client — proving that your invoice is authentic and compliant.

5. Staying Ready for Tax Season or Audit

Instead of scrambling to find past invoices, Niagawan gives you a complete history of every submission, complete with timestamps, statuses, and validation proof.

Whether it’s LHDN requesting supporting documents or your accountant needing records, you’re always audit-ready — no paper trail required.

Without Intermediary (Manual) With Niagawan (Automated)

Manually log in to MyInvois Portal

Seamless API connection to LHDN

Manually fill invoice fields

Auto-fill based on your NiagaPlus/POS data

Need to submit one-by-one

Batch or real-time submission from your system

No instant feedback on submission status

See live success/fail + validation details

Must store e-Invoices separately

Centralised recordkeeping in one dashboard

FAQs About E-Invoice Intermediaries in Malaysia

1. Is it compulsory to use an e-Invoice intermediary?

No, it’s not mandatory. Businesses can choose to use either the MyInvois Portal (manual entry) or an e-Invoice intermediary with API integration.


However, intermediaries are highly recommended if you handle frequent transactions, want automation, or use accounting systems like ERP, POS, or cloud-based software.

2. Will using an intermediary cost more?

Typically, yes — but for good reason. Intermediaries offer time-saving automation, built-in compliance checks, and error reduction, which can save you from penalties or audit issues in the long run.

Many accounting platforms (like Niagawan) include intermediary services as part of their software packages.

3. Can I switch from using the MyInvois Portal to an intermediary later?
Absolutely. You can start with manual submissions via the MyInvois Portal and move to an intermediary later as your business grows or your invoicing volume increases.

Just make sure the intermediary you choose is registered with LHDN and supports seamless onboarding.
4. How do I know if an intermediary is approved by LHDN?
LHDN provides an official list of registered and approved e-Invoice intermediaries.

Always verify that your chosen provider is certified and compliant with MyInvois integration standards..
5. Can an intermediary help with other invoice types like credit notes or self-billed invoices?
Yes. Most full-service intermediaries support various invoice types, including sales invoices, credit notes, refund notes, and self-billed invoices (Bil Kendiri) — all within one integrated platform.

Conclusion: Is an E-Invoice Intermediary Right for You?

If your business values speed, accuracy, and audit-readiness, using an e-Invoice intermediary in Malaysia is more than just a convenience — it’s a smart compliance strategy.

Whether you’re managing dozens or hundreds of invoices a month, integrating with MyInvois via a registered intermediary can save you time, reduce errors, and give you peace of mind that your tax reporting is fully aligned with LHDN’s requirements.

The best part? You gain full control and visibility. You'll know instantly whether your invoice is accepted or rejected. You’ll have a complete audit trail, accessible anytime. And more importantly, you can rest assured that your business is compliant with the latest LHDN regulations — without drowning in admin work.

If you're managing frequent invoices, dealing with multiple suppliers, or simply want peace of mind that your e-Invoicing process is fast, accurate, and audit-ready — then yes, an e-Invoice intermediary in Malaysia is the smart and scalable choice.

Ready to Simplify Your E-Invoicing?

Niagawan — through NiagaPlus and NiagaPos — is a registered e-Invoice intermediary trusted by thousands of Malaysian SMEs.

With full MyInvois API integration, real-time validation, and support for self-billed invoices, credit notes, and more, our system is built to keep your business compliant with LHDN — without the hassle.

Want to see how it works?

Fill in the form below to request a free demo. Our team will walk you through how Niagawan can streamline your entire e-Invoice process.

No technical setup required.

Niagawan Plus Sdn Bhd
110-2-21, Summerton Avenue, Persiaran Bayan Indah, 11900 Bayan Lepas, Penang, Malaysia.
SSMI: 1241159-P
SST No: P11-2201-32000010
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