e-Invoice Overview & LHDN Requirements

What is e-Invoice?

e-Invoice is a digital invoicing system mandated by Malaysia's Inland Revenue Board (LHDN / IRB). All businesses must submit electronic invoices through LHDN's MyInvois Portal, replacing traditional paper invoices with real-time digital tax documentation.

Each submitted e-Invoice receives a unique UUID (Universally Unique Identifier) and QR Code from LHDN for verification purposes.

Who Needs to Use e-Invoice?

LHDN has implemented e-Invoice in phases:

  • Phase 1 (August 2024): Businesses with annual turnover exceeding RM100 million
  • Phase 2 (January 2025): Businesses with annual turnover exceeding RM25 million
  • Phase 3 (July 2025): All businesses, regardless of turnover

This means all registered businesses in Malaysia will eventually need to adopt the e-Invoice system.

How Does AIAccount Help?

AIAccount serves as an LHDN-recognized intermediary software, providing a comprehensive e-Invoice solution:

  • Direct connection to MyInvois Portal — no need to manually log in to LHDN
  • Automatically generates LHDN-compliant e-Invoices
  • Supports Standard, Consolidated, and Self-Billed invoice types
  • Automatic QR Code and UUID handling for full compliance
  • Tracks all sent and received e-Invoices to prevent duplicates
  • Supplier expense tracking with self-billed invoice reminders

e-Invoice Type Comparison

Type Use Case Description
Standard Invoice B2B / B2C Sales Individual e-Invoice issued per sales transaction
Consolidated Invoice B2C Small Transactions Multiple transactions bundled into one submission to LHDN
Self-Billed Invoice Purchases from Individuals / Unregistered Suppliers Buyer issues e-Invoice on behalf of seller (e.g., foreign suppliers, non-business individuals)