Introduction
The Digital Wave is Here - Are You Ready for Malaysia’s e-Invoice Revolution?
Change. It’s the one constant in business, right? Sometimes it creeps up slowly, other times it feels like a tsunami heading straight for shore.
Right now, Malaysian Businesses are facing a pretty significant digital wave, that is e-Invoice. It’s a major shift driven by the Lembaga Hasil Dalam Negeri Malaysia (LHDN), changing the very way we record, check and report our business deals.
What is e-Invoice and Why Does It Matter for SME?
Alright, let’s get straight to it. You’re hearing this term “e-Invoice” popping up everywhere, but what on earth does it really mean for your SME here in Malaysia?
Is it just a digital copy of the paper invoices you’ve been using forever, or is there more going on? And why is LHDN making such a big deal about it now?
Getting the basics right is the first, most important step before you can even think about preparing.
So, in this chapter, we’ll break down the core ideas, see how the old ways compare to the new, understand why the government is doing this, and really hammer home why this change is super important for your business’s health and future.
What Exactly is an e-Invoice?
According to the LHDN, an e-Invoice is basically a digital proof of a deal between someone selling (supplier) and someone buying (buyer). Think of it like the digital twin for your usual invoice, credit note, or debit note. It holds all the usual info – who sold it, who bought it, what was sold, how many, the price, the tax, and the final amount due. Easy right?
But here’s the big difference, the part you really need to grasp: an e-Invoice isn’t just any old digital file, like a PDF you casually email or a photo you snapped. LHDN insists that e-Invoices must be made and sent in specific, structured ways that computers can easily read, namely XML and JSON.
So, when you issue an e-Invoice, you're not just sending a digital paper. You're actually submitting structured data to LHDN for a quick check-up (validation) before it becomes official and gets shared with your buyer. The main goal? To create a standard, verifiable digital record of income and expenses for everyone – LHDN, big companies, and yes, your SME too.
In simple terms:
- It's Digital: Less paper clutter!
- It's Structured: Uses special computer languages (XML/JSON).
- It's Validated: LHDN gives it a quick look-over almost instantly.
- It's Standardized: Everyone uses the same basic format.
The Key Difference from Traditional Invoices
e-Invoicing changes the game, especially with Malaysia's system where LHDN is involved early (that CTC model we mentioned).
Let's put them side-by-side:
The Government’s Angle: Why is LHDN Doing This Now?
It’s easy to grumble about new rules, but knowing why LHDN is pushing for e-Invoice helps put things in perspective:
Boosting the Digital Economy: The government wants Malaysia to be more digital. e-Invoicing is a key step to modernize how businesses operate, making the country more efficient and attractive.
Making Tax Admin Easier (for LHDN): Managing taxes with paper records is tough. e-Invoicing gives LHDN a near real-time view of transactions, helping them work smarter, reduce errors, and focus on bigger issues.
Improving Tax Compliance & Transparency: This is the main reason why LHDN implements e-Invoice. By checking transactions early, it is harder to hide income or use fake invoices. This helps reduce the ‘shadow economy’, stops tax leakage, and makes things fairer for businesses playing by the rules.
Why SME Can’t Ignore It?
Okay, enough theory. Let’s talk about why SME businesses cannot ignore e-Invoice.
• It’s the Law by LHDN
This isn’t optional, and you have no choice. If you miss or ignore the deadline, you’re breaking the law (Income Tax Act 1967). The penalties are no joke – fines up to RM20,000 or even jail time per offence. Not worth the risk!
• You will lose the big client if you ignore it
In the future, many big companies will implement e-Invoice. If your business is not ready, they might not accept to deal with you or may delay your payments.
• Unlocking Hidden Savings & Speed
Don’t just see this as a chore! Think of the time saved, the paper and postage cost cut, the potential for faster payments boosting your cash flow, and the fewer errors to fix. These efficiencies add up and can make a real difference to your bottom line.
• Future-Proofing Your Business
Digital is the future. E-invoicing is a big step in Malaysia's path. Getting on board now means you’re keeping up, staying competitive, and building a business ready for tomorrow. Waiting just means falling behind.
Who Needs to Comply With e-Invoice in Malaysia?
We know what an e-Invoice is and why it’s happening. Now you may need to verify that, does this apply to your business? If yes, when is the deadline given by LHDN?
Which Type of Businesses Are Affected?
In the short answer, if you pay taxes and you’re doing any kind of business activity here, chances are high that you need to get ready for e-Invoicing. Whatever you are, Sdn Bhd, Berhad, LLP, partnerships, or even the trusty sole proprietorships. If you are an individual doing business activities like freelancing, you’re likely to be included too. Even non-profit organisations doing commercial stuff aren’t exempt.
This isn’t just for local deals. If your business is importing or exporting to foreign businesses, you are required to make a self-billed e-Invoice.
Revenue Thresholds & Phased Implementation Timeline
As a business owner, you are required to pay attention to this part. When does your business absolutely have to start implementing e-Invoice? LHDN listed out the phases based on businesses’ annual revenue.
Here’s the official LHDN e-Invoice implementation timeline:
| Phase | Mandatory Start Date | Who’s Included (based on FY2022 Annual Revenue) |
|---|---|---|
|
1 |
1 August 2024 |
Businesses revenue > RM100,000,000 |
|
2 |
1 January 2025 |
Businesses revenue > RM25,000,000 up to RM100,000,000 |
|
3 |
1 July 2025 |
Businesses revenue > RM500,000 up to RM25,000,000 |
|
4 |
1 January 2026 |
Every business except for those with business revenue < RM150,000 |
Note: Revenue in FY2022 decides your business's initial phase. But if your revenue increases into a higher bracket later, you might need to start earlier.
How about if you are a new business that just started after FY2022, or your business’s revenue is unpredictable? Your business is required to start implementing e-Invoice from 1 January 2026.
LHDN is Encouraging Businesses To Go Voluntary Before It’s Mandatory
Although the listed phases are the must-start times, LHDN is still encouraging businesses to start implementing e-Invoicing voluntarily, even before their deadline hits.
You might be thinking, “Why do I need to add more work before the implementation date?” But there are some solid reasons to start early.
Less Stressful Transition: Implementing the e-Invoice takes a lot of time in the learning period. Starting early means you can figure things out, fix problems, and train your team without deadline pressure.
Plenty of Time to Test: You will get enough time to properly test your chosen method (MyInvois Portal or third-party accounting software).
Get Help Easier: When deadlines get closer, everyone will be calling software vendors, consultants, and even LHDN. Start early, and you’ll likely get support faster.
Fix Problems Calmly: You might find unexpected issues, like missing customer TIN number. Starting early gives you time to sort these out properly.
Look Good to Partners: Being e-Invoice ready before others might make dealing with bigger, already-compliant partners smoother, maybe even speeding up payments.
Chapter 3: How Malaysia’s e-Invoice System Works
Here is the important part! As a business owner, you must know how to implement e-Invoice.
This chapter will try to make the technical stuff less scary. We’ll explain Malaysia’s specific e-Invoice model, walk through the journey of e-Invoice step-by-step, look at the options LHDN gives SMEs like MyInvois Portal or accounting software, see what a validated e-Invoice looks like, and figure out how to handle corrections or those slightly tricky sales situations.
How to submit e-Invoice Through MyInvois Portal and NiagaPlus (Step-by-step)
MyInvois Portal
Here is the step-by-step guide to submit your e-Invoice through the MyInvois Portal. The exact buttons you click might be different, but the basic steps are the same:
Step 1: At the left panel bar, click “New Document”, then select the type of document in MyInvois Portal.
The most documented version is v1.1 for default.
Step 2: Fill in the basic information
Step 3: Key in the supplier and & buyer details
Step 4: Now you can add invoice details by clicking “Add Line”, and fill in product categories, what customer bought, how much, tax, etc. Before filling in the details, make sure the currency is correct.
Step 5: You can provide any other additional information including frequency of billing, billing period, shipping information, and Import & export information.
Step 6: Users can confirm their information at this page. If everything is okay, click “sign and submit document” to proceed.
Step 7: User will be redirected to the document signing page. Just need to fill in Identification No and password, tick the column then click submit.
Yay! Your e-Invoice is submitted to LHDN successfully. Click on “Finished” to complete the submission.
Both buyer and supplier will receive email notification after submitting the e-Invoice.
LHDN provides a secure website you log in by using your TIN number to manage e-Invoices.
It's good for:
Micro/small SME with few transactions
Businesses without accounting software that can connect via AP
What you can do:
•Manually type in and create e-Invoices
• Submit them for validation
• See if they were validated or rejected
• View/download your validated e-Invoices
• Reject incoming e-Invoices (if needed, within a time limit) or cancel ones you sent (within 72 hours)
| Pros | Cons |
|---|---|
|
• It’s free! No software cost |
• Manual work, only can key-in invoice 1-by-1 if you have many invoices |
Account System like NiagaPlus
For businesses with more transactions, it is recommended to use accounting software to solve your e-Invoice issue.
It's good for:
• Businesses with lot of transactions
• Anyone wanting automation and efficiency
Why it’s better:
• Automation: No manual typing in the portal, accounting software sends the data automatically
• Efficient than MyInvois Portal
• Real-time updates, often see the validation status right in accounting software
In this part, we will show how to submit an e-Invoice using NiagaPlus.
Mistakes Made When Submitting e-Invoice? Here are Cancellations & Adjustment Notes
If you realised that the mistake was made after submitting the e-Invoice, how to fix it? It depends how quickly you catch it.
If the e-Invoice is submitted within 72 hours:
Quick! You can cancel the wrong e-Invoice via the MyInvois Portal or accounting software. Then, just issue a new invoice to revise the details.
If the e-Invoice is submitted after 72 hours (or if the buyer acted on it):
It’s too late to cancel. You are required to issue an adjustment e-Invoice. What you can do is:
• Issue a credit note to reduce the original amount (returns, discounts, price errors)
• Issue a debit note to increase the original amount (extra charges, fixing undercharges)
• Issue a refund note for documenting refunds
These adjustment notes must refer back to the Unique Identifier Number of the original e-Invoice they are fixing. This keeps the records straight.
Specific Situations During the Execution of e-Invoice
Consolidated Invoices
Mainly for B2C sales where customers don’t need individual e-Invoices (like retail). You can group these sales into one consolidated e-Invoice, and submit it to LHDN by the 7th of the next month.
Self-billed e-Invoices
Sometimes, the buyer issues the e-Invoice to the supplier. LHDN allows this in specific cases (like paying agents/dealers, buying from non-business individuals, and some imports). The buyer creates it, gets it validated, and gives it to the supplier.
Foreign Currency
You can issue in foreign currency, but you must also show the total in Ringgit Malaysia (RM), using approved exchange rates.
Disbursement
Paying something for your client where you're just passing money through (like a filing fee). Usually, no e-Invoice is needed from you to the client for this amount itself.
Reimbursement
Claiming back expenses you paid first, which relate to services you provided. This does typically require an e-Invoice from you to your client, often referencing the original expense.
Chapter 4: Your Roadmap to Readiness: Action Plan for e-Invoice Implementation
Is it feeling a bit clearer now about this e-Invoice?
Now is the important part — turning all the information into an action plan.
Knowing the rules is one thing; getting your business ready is the real challenge. But don’t worry — in this chapter, we’ve prepared a step-by-step action plan to guide you through what you need to do.
Let’s get your business e-Invoice ready — the smart and stress-free way.
Step 1: Confirm Deadline And Assess Your Current Invoicing Situation
Before you plan the trip, you need to know where you are starting from.
The first step is: confirm your e-Invoice deadline as this blog mentioned above. Double check your mandatory start date based on your FY2022 revenue.
Then, review the current invoicing process in your business. Ask yourself:
• Who makes the invoices now? How is he/she doing it? (Word, Excel, or accounting software?)
• How are the invoices sent to customers? (Email, print-out, WhatsApp?)
• How does your business handle supplier invoices received?
• Where are old invoices stored? (Physical files? Computer folders?)
Knowing your current workflow helps you figure out what needs to change — and what’s already working.
Step 2: Know About Current Software That Your Company is Using
Does your company use any software now? If yes, check whether the software supports e-Invoice creation and submission functions.
Or is your company still using a manual way to create invoices?
That means you’re likely looking at either:
• Using the MyInvois Portal
• Or getting a new accounting software that supports e-Invoicing
Now is the time to evaluate which path is best for your business.
Step 3: Prepare Your Team
Which person is creating invoices for customers? Are they able to learn a new system?
Example: Finance/ Accounting department, Sales, Admin.
If yes, which training do they need to attend? Maybe hands-on sessions, vendor materials, internal guides or SOP.
Write it down and create clear step-by-step guides for the new process. You are required to prepare your team before implementing e-Invoice officially.
Step 4: Check What Document You Need to Prepare and What Information You Need To Request From Customers
To create or request an e-Invoice, you are required to prepare information.
If you are creating an e-Invoice, you need to request information from customers, such as:
• Business Name
• Registration number
• TIN Number
• MSIC code
• Contact information
• Address details
• Tax Exemption (If applicable)
If you are requesting an e-Invoice from the supplier, you are also required to provide the above information to your supplier.
Step 5: Setup & Testing
Got your solution? Data ready? Now it’s time to set up and test the workflow!
Check the internal process again before testing. How does this change your workflow for staff, customers and suppliers? Make sure the related staff in the e-Invoice process understand the change and their roles.
For example:
• e-Invoice basics
• How to use Portal or your new software
• Step for creating, submitting, validating
• Handling errors/ rejections
• Doing cancellations/ adjustments
On the customer's side, tell them about the change, how they’ll get e-Invoice from your company side, and ask for their information if needed.
After confirmation, and you think you are ready to implement e-Invoice, try the whole process.
create -> submit -> check status -> handle rejection -> share validated invoice (QR code check) -> do an adjustment. Get the actual staff involved.
By following these steps, you can approach the e-Invoice transition systematically, reducing stress and setting your SME up for success in Malaysia’s digital future.
Chapter 5: Making e-Invoice Become Easy
You’ve got the roadmap (and hopefully started ticking off that checklist!). But let’s be real, the idea of adding more manual work, like typing every single invoice into the MyInvois Portal, probably makes you want to faint, especially when you are already juggling a million things running your SME.
Imagine this: Your staff painstakingly types every invoice detail into the LHDN MyInvois system. They double-check everything before submitting, then wait for validation. Once validated, they download the approved invoice with the embedded QR code, attach it manually to an email, and send it to the customer. After that, they still have to update your records in a separate accounting spreadsheet or software. Repeat this process for every invoice — dozens, maybe hundreds — every single month.
Now add supplier invoices to the mix.
Is that efficient? Is that sustainable? Definitely not. It’s tiring, time-consuming, and a recipe for errors.
What a Good e-Invoice System Should Give You (And Your Team)
The right accounting software, especially one that integrates directly with LHDN’s MyInvois via API, eliminates all this hassle.
Here’s exactly what you and your team will experience when you switch from manual to automated e-Invoicing:
You’ll Get Error-Free, Auto-Filled Invoices — No More Typing Everything Manually
Instead of keying in each buyer name, address, and tax code manually, the system auto-populates these fields using your existing customer database or sales records.
It applies the correct SST treatment, ensures the product details are accurate, and eliminates the small errors that can cause your e-Invoice to be rejected. This is a game-changer for accuracy and consistency, especially when you're dealing with dozens or hundreds of invoices per month.
You’ll Submit an e-Invoice in Seconds, Not Minutes
No more switching tabs, uploading and downloading documents, or waiting in queue to use the MyInvois Portal. With a few clicks, the e-Invoice is generated, submitted to LHDN, validated, and ready to go — all from one screen. The system even generates a downloadable PDF version with the required LHDN QR code already embedded. From start to finish, it takes less than 30 seconds per invoice.
You’ll Save Hours of Staff Time Every Week
When your team no longer needs to manually create, upload, download, and send e-Invoices, they get back precious time. Instead of doing repetitive admin work, they can focus on customer service, closing more sales, or managing daily operations. Over time, this reduces workload stress, improves morale, and helps your team operate at full productivity without needing to grow your headcount.
You’ll Run Everything From One Dashboard — Sales, Stock, Reports, and e-Invoice
Imagine issuing a sales invoice and, in the same step, updating your stock balance, customer ledger, and income report — all automatically. That’s what an integrated accounting system gives you. No more juggling between your POS, Excel sheets, and MyInvois login. Everything you need to run your business — sales, expenses, SST, inventory, customer records, reporting, and e-Invoicing — is connected and updated in real-time.
You’ll Always Know Where You Stand Financially
When your invoicing system is fully integrated with your financial dashboard, you’ll know at any moment how much is owed to you, which invoices are pending, what’s been validated by LHDN, and what your cash flow looks like. Need to prepare for tax season or apply for a grant? You’ll have clean, exportable records and audit trails ready. Real-time reporting = smarter business decisions.
How Niagawan Supports e-Invoice Readiness
As Malaysia moves closer to the mandatory rollout of e-Invoicing in 2025, many small business owners — from sole proprietors to growing SMEs — are starting to feel the pressure.
If you’re a business owner who’s already juggling sales, inventory, customers, and cash flow, it’s completely normal to feel overwhelmed by this new requirement from LHDN.
You might be thinking:
• “How do I even begin with this e-Invoice thing?”
• “Do I have to learn complicated accounting systems just to comply?”
• “Will this take up more of my already limited time?”
The truth is, you’re not alone. Many SMEs across Malaysia — from pasar malam traders to boutique retailers, freelancers, and even family-run kedai runcit — are going through the same learning curve.
The good news? You don’t have to go through it blindly or do everything manually.
This is where Niagawan comes in — a cloud-based accounting software that’s not only built to help you comply with LHDN’s e-Invoice requirements, but also made specifically with Malaysian SMEs in mind.
Unlike overly complex software made for big corporations, Niagawan speaks your language.
Whether you're running your business from a shoplot in Penang, a home office in Kota Bharu, or even a mobile food truck in Shah Alam — Niagawan fits into your daily workflow, not the other way around.
You don’t need an accounting background or IT department to get started. Niagawan is designed to be simple, practical, and fully aligned with local tax regulations.
It helps you save time, avoid costly mistakes, and most importantly, keeps your business e-Invoice ready without stress.
Let’s break down how exactly Niagawan supports your transition — from preparing your invoices to sending them directly to LHDN and staying compliant, every step of the way.
Cloud Accounting Software with Built-in e-Invoice Features
If you're running a small business in Malaysia, juggling daily operations while trying to keep up with new requirements like e-Invoicing can feel overwhelming. Niagawan understands that — which is why it’s built not just as an accounting tool, but as a complete business solution designed specifically for local SMEs.
Whether you're selling kuih at a pasar malam, managing a mini-market, or running a freelance service, Niagawan helps simplify your work — especially when it comes to LHDN’s e-Invoice requirements.
What “Cloud-Based” Means for You
Because Niagawan is cloud-based, you don’t need to worry about complicated setup or manual updates. You can easily log in from your phone, tablet, or laptop — whether you’re at home, in your shop, or out meeting customers.
Your data is stored securely online, so there’s less risk of losing important records if something happens to your device. Plus, the system updates automatically, so you won’t have to keep track of new tax rules or invoice formats — Niagawan does that for you behind the scenes.
Niagawan is fully cloud-based, which means:
– No installation or hardware needed – Just log in via browser or app.
– Works on all devices – Use your phone, tablet, or laptop, whether you’re at your kedai, at home, or on the go.
– Always up to date – System updates happen automatically in the background. You don’t have to install anything or worry about missing out on new tax rules or LHDN format changes.
– Secure data storage – Your records are safely backed up online, minimizing the risk of data loss due to damaged devices or accidents.
This kind of setup is especially helpful for small business owners who are too busy to deal with technical setups or hire someone just to handle compliance. It’s simple, practical, and designed for people who want to run their business — not become IT experts.
e-Invoice-Ready from the Start
When it comes to e-Invoice features, Niagawan includes everything you need from the start. Invoices you create already follow LHDN’s official e-Invoice format, including essential details like customer information, Tax Identification Numbers (TIN), item descriptions, and SST (if applicable). It also supports credit notes, refund notes, and self-billed invoices.
There’s no need to install extra plugins or figure things out on your own. Everything you need is already in the system:
– Invoice creation in LHDN-compliant format – Includes fields like Tax Identification Number (TIN), invoice date, customer details, item descriptions, SST (if applicable), and currency.
– Automatic QR code generation – For easier validation and tracking.
– Support for credit notes and refund notes – Helpful when customers make changes or returns.
– Self-billed invoices – Useful for supplier arrangements where you issue invoices on behalf of others.
Every e-Invoice template follows LHDN’s latest guidelines — no guesswork, no manual formatting.
Fully Integrated Sales and Record-Keeping
With Niagawan, your sales, invoicing, and record-keeping are all connected in one place. This is especially useful for small business owners who don’t have time to deal with complicated government systems or hire extra help just to meet compliance.
– No need for double entry or switching between systems.
– Everything stays organized, making it easier if you ever need to prepare for an audit or refer to past records.
– Helps reduce common errors that might happen when doing things manually.
This gives you more confidence when submitting to LHDN — and peace of mind knowing your records are always in order.
Real-Life Example: Catering Business
For instance, imagine you run a food catering service and issue 10–15 invoices per week. Instead of typing out each invoice manually, Niagawan lets you generate them quickly by using saved customer details and product templates — and it automatically applies SST when necessary.
This saves you time and reduces the chance of errors.
Real-Time e-Invoice Submission and Validation by LHDN
Once e-Invoicing becomes mandatory, submitting your invoices to LHDN in the correct format — and getting them validated — will be a daily part of doing business.
This process can seem intimidating at first, especially if you’re not used to dealing with digital submissions or government systems.
One of the biggest concerns business owners have when it comes to e-Invoice is the submission process.
“How do I send it to LHDN?”
“Do I have to log in manually every time?”
“What if I make a mistake?”
With Niagawan, you don’t need to worry about all that.
The system is already connected to LHDN’s MyInvois platform through API integration — without you needing to log in to a separate portal or re-enter data.
Which is just a fancy way of saying everything works automatically in the background, without extra steps.
You’ll be able to:
• Submit e-Invoices in real-time or in batches
• Receive instant status updates (success, error, pending)
• Automatically generate and attach LHDN’s validation QR code
No More Guesswork
Because the submission and validation happen instantly, you’ll know right away if there’s any missing information or an error in the invoice format.
Niagawan highlights the issue, so you can fix it without stress — reducing the risk of rejected invoices or penalties.
This means you can generate a complete, LHDN-approved invoice in just a few clicks, without needing to copy-paste or re-type any details.
Let’s say you’re handling five or ten invoices a day — or even more during busy seasons.
Having this automated system saves hours of work every week, especially when compared to doing it all manually through the portal.
It also reduces errors like missing fields or incorrect formatting, which can happen easily if you're in a rush or not familiar with the system.
Plus, once your e-Invoice is validated, you can email it directly to the customer straight from the system.
No downloading PDFs, no renaming files, no juggling folders.
It’s these small conveniences that make a big difference when you’re running a business — especially when you don’t have a full-time finance team to help with all the paperwork.
User-Friendly Setup and Dedicated Local Support
Transitioning to e-Invoicing doesn’t have to mean dealing with complicated software, long learning curves, or technical jargon.
Let’s face it — not everyone running a small business has the time (or interest) to learn complicated software.
You’re already busy serving customers, handling orders, managing staff, and now you’re being told to implement e-Invoice too?
That’s why Niagawan is designed to be simple from the very start.
You don’t need to be a tech expert to use it.
Quick and Guided Setup
Getting started with Niagawan doesn’t require a team of technicians.
Most users can set up their account, input business info, and begin issuing invoices in under a day.
The system includes:
• Step-by-step guides in plain language (available in Malay and English)
• Templates for common business types (retail, services, F&B, etc.)
• Pre-configured e-Invoice formats that match LHDN’s specifications
Whether you're a pasar malam vendor, a freelance designer, or a kedai makan owner, you’ll find that the system is already aligned with how you run your business.
Friendly Support That Speaks Your Language
And if you get stuck? Niagawan’s local support team is ready to help — by WhatsApp and phone call.
You’re not talking to a chatbot or someone overseas; you’re getting support from a real team based in Malaysia, who understands local terms like “resit”, “nota kredit”, and “no. pendaftaran syarikat”.
Plus, if you’re already using Excel or another system, Niagawan helps with data migration so you won’t have to start from scratch.
You can bring in your product lists and customer info — making the transition smoother.
In short, Niagawan helps take the stress out of going digital with e-Invoicing.
You don’t need to worry about doing everything manually, figuring out complex software, or keeping up with every new rule from LHDN.
Whether you’re just getting started or already running a busy operation, Niagawan gives you the right tools, clear guidance, and local support to help you move forward with confidence.
It’s not about making things fancy — it’s about making them practical, efficient, and suited for real Malaysian businesses like yours.
Frequently Asked Questions (FAQ) About e-Invoicing in Malaysia
If you’re just getting started with e-Invoicing or trying to wrap your head around how it affects your business — you’re not alone.
Many small business owners in Malaysia have similar questions, especially with the 2025 deadline around the corner.
Whether you’re running a kedai runcit, selling on Shopee, or offering freelance services, here are some of the most common questions we get — answered in simple terms, no jargon.
1. What is an e-Invoice, and why do I need to use it?
An e-Invoice is a digital invoice that must be validated through LHDN’s MyInvois system.
It replaces traditional invoices and receipts for tax purposes.
From 2025, it’ll be a must-have for most Malaysian businesses to ensure transparency and compliance.
2. Can I use Excel for e-Invoicing?
Excel is fine for basic record-keeping, but not for e-Invoicing compliance.
You’ll still need a way to connect to LHDN’s system or use an intermediary.
Niagawan handles all of that for you — no need to upload anything manually.
3. Is Niagawan certified for e-Invoice?
Yes. Niagawan follows LHDN’s official guidelines and formats, and we’re continuously updating the system to meet new requirements.
It supports e-Invoice submission, validation, and fields like TIN and SST.
4. I'm a small business owner. Does this really apply to me?
Yes, even small or micro businesses will eventually be required to issue e-Invoices.
It’s better to start now, when things are calm, rather than rushing later and risking penalties or errors.
5. Is it complicated to start using e-Invoice?
It sounds technical, but with the right system, it isn’t.
Niagawan is designed so anyone can use it — no need for a full accounting team.
It formats your invoices, sends them to LHDN, and stores everything securely online.
6. What happens if I miss the e-Invoice deadline?
You may face compliance issues, which could lead to penalties, audits, or delays in your tax processing.
Starting early helps you avoid all that and gives you time to get comfortable with the new system.
7. Do I need to submit each invoice to LHDN manually?
Nope. With Niagawan, everything happens in real time.
Once you create an invoice, the system submits it to LHDN for validation — no extra work needed.
8. What happens during an audit?
Audits can be stressful, but they’re much easier when your records are neat and digital.
Niagawan stores every invoice, note, and transaction online — complete with timestamps and validation history.
9. Can I still issue cash sales or manual receipts?
You can, but every taxable sale must still have an official e-Invoice submitted to LHDN.
Niagawan supports both — and keeps your records linked so nothing gets missed.
10. What if I make a mistake in my invoice?
Don’t worry. Once an e-Invoice is submitted, you can’t change it — but you can issue a credit note or refund note.
Both are supported in Niagawan and follow LHDN’s format.
11. Do I need special software or hardware to use e-Invoice?
Nope. Niagawan is cloud-based — meaning it works on your phone, tablet, or laptop with no installation needed.
Whether you’re at the kedai, working from home, or meeting a customer, you can log in anytime.
12. Do I need a Tax Identification Number (TIN)?
Yes. Both the business owner and your customers (if they’re also businesses) need to have TINs for e-Invoicing.
Niagawan’s forms guide you through this and include all the necessary fields automatically — so you won’t miss a thing.
13. How do I know if my invoice is compliant with LHDN?
If you're using Niagawan, you don’t need to worry.
Every invoice template is built to match LHDN’s official format — including:
• TIN and SST breakdowns
• Invoice and item details
• QR code for validation
Everything is double-checked by the system before it’s submitted.
14. What support is available if I need help?
We know tech can be frustrating — especially if you’re busy running your business.
That’s why Niagawan provides support in both English and Bahasa Malaysia via WhatsApp, email, and live tutorials.
You’ll also find step-by-step video guides for every feature.
