Malaysia’s move to e-invoicing is reshaping the future of tax reporting and digital compliance. The Inland Revenue Board of Malaysia (IRBM) is rolling out the e-Invoice mandate in phases, and businesses need to ensure their ERP systems are ready.

What Is Malaysia e-Invoicing?

Malaysia e-Invoicing is a government-led initiative to digitize the invoicing process using standardized, machine-readable formats. This transition replaces traditional paper or PDF invoices and integrates directly with the MyInvois system, IRBM’s central platform for validation, storage, and sharing.

With mandatory e-invoicing in Malaysia becoming a reality in 2024–2026, having a robust ERP like Odoo integrated with MyInvois is critical.

Malaysia e-Invoice Rollout Timeline by IRBM

IRBM’s e-Invoice implementation is happening in four phases based on annual business turnover. Here’s the official e-Invoice timeline:

Phase 1: Large Companies

Who: Annual turnover > RM100 million
Voluntary Start: August 1, 2024
Mandatory Compliance: February 1, 2025

Phase 2: Mid-Sized Companies

Who: RM25 million to RM100 million turnover
Voluntary Start: January 1, 2025
Mandatory Compliance: July 1, 2025

Phase 3: SMEs

Who: RM500K to RM25 million turnover
Voluntary Start: July 1, 2025
Mandatory Compliance: February 1, 2026

Phase 4: Remaining Businesses

Who: RM150K to RM500K turnover
Mandatory Compliance: July 1, 2026

Note: Businesses with turnover below RM150K are currently exempt from mandatory adoption.

Relaxation Period for e-Invoice Compliance

Each phase includes a six-month relaxation period, where businesses have the flexibility to adapt. During this time:

• Consolidated e-invoices are accepted (B2B & B2C)

• Product/service descriptions can be more flexible

• No penalties under Section 120 of the Income Tax Act 1967

This is your window to test, optimize, and transition with Onnet Consulting’s Odoo e-Invoicing solution.

What Businesses Must Do in Each e-Invoicing Phase

Phase 1: Full Compliance for Large Enterprises (Feb 2025)

Requirements:

• Validate all B2B transactions separately

• Ensure schema matches IRBM e-Invoice guidelines

• Automate workflows using Odoo ERP

• Prepare and test historical data against the new structure

Phase 2: ERP Integration for Mid-Sized Businesses (July 2025)

Recommendations for Phase 2 Businesses:

• Conduct ERP system gap analysis

• Implement gradual Odoo ERP integration with MyInvois

• Pilot high-volume e-invoice transactions

• Train internal staff on validation workflows

During the relaxation period (until June 30, 2025), manual upload via MyInvois Portal is allowed. After that, API integration becomes key.

Phase 3: Start Planning Now for SMEs (Feb 2026)

Checklist for Phase 3 Compliance:

• Register for the MyInvois Sandbox by April 30, 2025

• Clean & digitize supplier and customer master data

• Choose cost-effective middleware or full Odoo integration

• Plan for automation and real-time validation

Phase 4: Final Adoption for All Other Businesses (July 2026)

What to Do:

• Analyze business fit for API or portal-based model

• Ensure digital readiness of customer/supplier records

• Avoid manual processing—invest in future-proof ERP

What Happens If You Don’t Comply?

Starting from February 1, 2025, for Phase 1 companies, and July 1, 2025, for Phase 2:

Failure to comply with e-Invoicing rules may result in:

• A fine of RM200 to RM20,000 per offense

• Imprisonment of up to 6 months

• Or both, under Section 120(1)(d) of the Income Tax Act 1967

Late submissions, incorrect schema formats, or missing UINs can trigger penalties—avoid them by integrating your systems early.

Why Choose Onnet Consulting for e-Invoicing?

As one of the most experienced Odoo partners in Malaysia, Onnet Consulting offers a future-ready, fully compliant Odoo e-Invoicing solution tailored to LHDN’s MyInvois requirements.

What You Get with Onnet:

• Full Odoo ERP Integration with MyInvois via API

• Seamless handling of B2B, B2C, and self-billing workflows

• Real-time e-Invoice validation & compliance tracking

• Support for POS, e-commerce, ERP, and accounting platforms

• Scalable setup for multi-branch and multi-company operations

Whether you're preparing for Phase 1 or planning ahead for Phase 3 or 4, our team ensures you stay compliant without disrupting daily operations.

Get Ready for e-Invoicing with Odoo by Onnet Consulting

The e-Invoice mandate isn’t optional—and waiting too long can cost your business time, resources, and penalties.

Let Onnet Consulting handle the complexity. From gap analysis to full system implementation, we’ll get your Odoo ERP ready for seamless, LHDN-compliant e-invoicing.

Contact us today to schedule your free consultation or e-Invoicing demo.