What is Electronic Invoicing, and How Does it Work?
Blog post description.
7/7/20241 min read
E-invoicing, or electronic invoicing, is the process of sending and receiving invoices in a digital format instead of paper. It replaces paper or other electronic documents such as invoices, credit, and debit notes.
It involves the automated exchange of invoice data between the buyer’s and seller’s systems, eliminating manual tasks and allowing for faster, more accurate processing of invoices. A valid e-invoice in Malaysia shall contain 53 mandatory fields. It includes important details such as seller and buyer details, item description, quantity, price, tax, total amount, payment details, etc.
You will need to familiarise yourself with the e-filing LHDN system, the requirements for tax reporting, and the integration of e-tax data within the accounting system. Compliance with local requirements, including the privacy statement, is essential for the smooth transition to e-invoicing and the secure transmission of electronic documents. By understanding the electronic invoice system and regulations, you can ensure the accuracy of tax reporting, streamline compliance, and embrace the digital transformation of their invoicing processes.