Malaysia E-Invoice: Which Transmission Method Should You Choose?
In 2024, the Inland Revenue Board of Malaysia (LHDNM) announced the implementation of the electronic invoice (e-invoice) policy, aimed at improving business efficiency and reducing tax evasion. To achieve this goal, LHDNM offers two electronic invoice transmission mechanisms: the MyInvois website and the Application Programming Interface (API).
MyInvois Website
The MyInvois website is an e-invoice system designed specifically for taxpayers and is suitable for small-scale transaction businesses. It allows taxpayers to manually prepare invoices or upload multiple transaction invoices in bulk for authentication by LHDNM. Invoices that are authenticated through MyInvois can be found and downloaded in the respective tax accounts of both the seller and the buyer.
The advantage of the MyInvois website is its simplicity and user-friendliness, as users only need to fill in the relevant information on the website to generate electronic invoices. Additionally, the MyInvois website provides additional features such as invoice search, viewing, and downloading.
However, the drawback of the MyInvois website is that for businesses with large transaction volumes, manually inputting each transaction’s information may be cumbersome.
API Interface
The API interface allows businesses to connect their own billing systems to LHDNM, enabling them to generate invoices through their own systems and subsequently upload them to LHDNM for authentication in one go. The API interface is suitable for businesses with large transaction volumes, but it comes with higher fees.
The advantage of the API interface is that it can automatically process a large number of transactions, greatly improving business efficiency. Additionally, the API interface can be integrated with other systems in the company, such as financial or inventory management systems, for unified data management.
However, using the API interface requires certain technical knowledge and may require hiring professional technical personnel for maintenance, accompanied by higher usage costs.
Which One to Choose?
The choice between the MyInvois website and the API interface mainly depends on the business’s needs and transaction volume. If the business has a smaller transaction volume, then the MyInvois website may be a better choice due to its lower cost. However, if the business has a larger transaction volume, then the API interface may be a better choice as it allows merchants to upload a large number of invoices at once.
Regardless of the chosen method, it is important to note that the implementation of e-invoices aims to improve business efficiency and reduce tax evasion. Therefore, businesses should choose the electronic invoice transmission mechanism that best suits their own needs.
Overall, the implementation of electronic invoices is an important step that plays a crucial role in improving business efficiency and reducing tax evasion. Businesses should actively participate in this process and select the electronic invoice transmission mechanism that is most suitable for them.
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