Mandatory e-invoicing in Malaysia is being implemented in phases, with the first phase starting on August 1, 2024, for taxpayers with an annual turnover of MYR 100 million or more. The remaining taxpayer groups will be phased in starting in July 2025, with mandatory e-invoicing for all tax-registered businesses by January 2027.
The Inland Revenue Board of Malaysia (IRBM) has released the e-Invoice Guideline Year 2023, which provides further clarification in terms of the scope, coverage, and data fields required for e-invoicing. The IRBM is also set to release a software development kit (SDK) and relevant technical documentation to help businesses prepare for the implementation of e-invoicing.
Mandatory e-invoicing in Poland is set to take effect on July 1, 2024. This means that all businesses with a tax identification number (NIP), including VAT-exempt businesses, will be required to issue and receive invoices electronically through the Krajowy System e-Faktur (KSeF) platform.
The KSeF platform is a centralized system that allows businesses to issue, receive, and store invoices electronically. It also allows the Ministry of Finance to monitor and verify invoices in real time. The use of KSeF is expected to help reduce tax fraud and simplify tax compliance for businesses.
Electronic invoicing (e-invoicing) has been mandatory in Italy since 2019 for all business-to-business (B2B) and business-to-government (B2G) transactions. In July 2022, e-invoicing became mandatory for all cross-border transactions as well. This means that all businesses in Italy, regardless of their size or industry, must issue and receive invoices electronically through the Sistema di Interscambio (SdI) platform.
The SdI is a centralized system that allows businesses to issue, receive, and store invoices electronically. It also allows the Italian Revenue Agency to monitor and verify invoices in real time. The use of SdI is expected to help reduce tax fraud and simplify tax compliance for businesses.
To curb Belgium's substantial VAT gap of 12.3%, amounting to EUR 4.4 billion in lost VAT, the government has rolled out mandatory e-invoicing for Business to Government (B2G) transactions. With the government aspiring to digitize all public services by 2025, this mandatory e-invoicing solution aligns with Belgium's digital transformation strategy
Austria implemented the Fiscal Journal (DEP) in 2016, mandating real-time storage of sales data at every point of sale (POS) system. This information needs to be stored in a central database or the cloud and transmitted to the Bundesministerium Finanzen authorities upon request.
Additionally, since 2017, digital signatures have been required for cash receipts to heighten data security. Consequently, Austria's fiscal system encompasses both hardware and software components, necessitating compliance with these digital reporting mandates. Employing the SAF-T system, widely adopted globally, companies are obligated to digitally submit tax reporting information upon request.
Embarking on a joint venture, Medius and Pagero introduce an all-encompassing cloud-based financial solution, boasting a myriad of distinctive features that distinguish it in the market. This innovative collaboration aims to revolutionize financial processes with cutting-edge technology.
Moreover, the comprehensive solution redefines standards, offering a diverse array of features designed to prioritize functionality, setting it apart in the competitive landscape.
Medius and Pagero emphasize a holistic approach to cloud-based financial management, promising unparalleled efficiency and adaptability.
The convergence of these four key features in this holistic solution revolutionize invoicing processes. They amplify operational efficiency in diverse financial aspects. The convergence drives a transformative shift in business operations.
Pagero, as a global electronic invoicing network, collaborates seamlessly with Medius to provide tailored solutions for businesses in Malaysia:
In the era of global digital transformation, the collaborative efforts between Medius and Pagero take center stage, presenting a revolutionary electronic invoicing(E-Invoicing) solution that significantly bolsters efficiency and transparency.
As businesses brace themselves for this transformative change, it’s pivotal to remain cognizant of key implementation dates, serving as crucial milestones for a seamless integration into the new system.
Considering the diverse global electronic invoicing standards, proactive preparation for region-specific implementation dates becomes crucial. Furthermore, tailored guidance empowers businesses, guaranteeing a seamless transition precisely aligned with their unique geographic requirements. Additionally, staying updated on these vital dates not only aids compliance but also facilitates a smoother shift to e-invoicing practices.
The transition to electronic invoicing provides businesses with a multitude of advantages:
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Mandatory e-invoicing for taxpayers with an annual turnover of MYR 100 million or more.
Mandatory e-invoicing for taxpayers with an annual turnover of more than MYR 25 million and up to MYR 100 million.
Mandatory e-invoicing for all other taxpayers.
Anticipate additional e-invoicing milestones in the years ahead as the Malaysian government continues its push for digital transformation.
Companies could begin issuing "structured" invoices to KSeF and benefit from fiscal benefits
Systems will be integrated and that e-invoicing will become mandatory
To commence, assess your ERP system’s capabilities. Check if it can manage structured data or relies on paper/PDF formats. If it’s not equipped, update and rectify data to meet local jurisdiction requirements.
While not mandatory to engage a service provider, if you struggle to meet technical or invoice format criteria for KSeF platform submission, consider reaching out to a provider like Pagero for assistance with local compliance.
Lastly, take immediate action. For Polish companies or international entities operating in Poland, waiting until 2024 isn’t necessary. Early adoption holds numerous advantages, particularly for larger enterprises.
Mandatory for domestic B2B to offer e-invoices via SDI
B2B and B2C (with some exceptions) e-invoicing mandatory for those with an annual turnover greater than 65,000 EUR
Electronic invoicing applicable to taxpayers who adopt the flat-rate tax regime
Invoicing necessitates structured creation and transmission through the state platform “Sistema di Interscambio (SDI).” Firms must craft invoices using the tax authorities’ XML schema – the FatturaPA.
B2B: Companies decide on measures ensuring invoice integrity/authenticity, often employing electronic signatures.
B2G: Business-to-government transactions mandate electronic signatures. National Health Service orders must use the NSO platform (Nodo Smistamento Ordini) and reference in the electronic invoice.
Archiving e-invoices involves specific requirements, such as:
All taxpayers will be required to be able to receive electronic invoices.
Large taxpayers (turnover of over EUR 9 million) will be required to send electronic invoices
Mid-size taxpayers (turnover between EUR 7 million and EUR 9 million) will be required to send invoices electronically
All taxpayers will be required to send invoices electronically.
Belgium passed a decree in January 2016, mandating electronic invoicing for all B2B transactions. The government opted for the PEPPOL network for B2B e-invoicing.
It’s crucial to prepare for compliance by identifying an access point provider that facilitates PEPPOL network access, enabling the issuance of compliant e-invoices.
Voluntary B2B e-invoicing as electronic invoices gain the same standing as paper invoices through the ICT Consolidation Act (ICTKonG).
Mandatory electronic invoice use for central public administrations in Austria.
Mandatory electronic invoice use for federal states and municipal authorities.
Under the “IKT Konsolidierungsgesetz,” all federal government contractors, including international ones, must exclusively submit structured electronic invoices for products and services delivered to government departments. While private entities aren’t obligated to provide e-invoices, they have the option to do so voluntarily.