E-Invoice

E Invoice With SQL Account

Make the switch to SQL Account and ensure your business stays compliant with LHDN E Invoice

Prepare Your Malaysian Business for E-Invoicing with SQL Account

The Malaysian Inland Revenue Board (LHDN) is making e-invoicing mandatory for tax purposes. SQL Account is certified to comply with these regulations, making it a seamless solution for your business. E-invoicing is being rolled out in stages, with the first group of businesses (those with annual revenue or sales exceeding RM100 million) needing to be compliant by August 1, 2024. By July 1, 2025, e-invoicing will be mandatory for taxpayers with annual revenue or sales exceeding RM50 million. The final phase, encompassing all businesses in Malaysia regardless of size, will be required to use e-invoices by January 1, 2026. Make the switch to SQL Account and ensure your business stays compliant with LHDN regulations.

The Malaysian Inland Revenue Board (LHDN) is making e-invoicing mandatory for tax purposes, and SQL Account is fully certified to comply with these regulations, providing a seamless solution for your business. The rollout will be implemented in phases according to annual revenue, starting with businesses exceeding RM100 million on 1 August 2024, followed by those with revenue between RM25 million and RM100 million on 1 January 2025, and businesses with revenue between RM5 million and RM25 million on 1 July 2025. From 1 January 2026, companies with revenue between RM1 million and RM5 million will also be required to comply, and finally, by 1 July 2026, all businesses with revenue up to RM1 million will be included. Businesses with annual turnover below RM500,000 are currently exempt. By adopting SQL Account now, your business can stay compliant with LHDN’s MyInvois requirements while enjoying a smoother, more efficient invoicing process.

How SQL Accounting Assists Your Business in Adhering to LHDN E-Invoice Requirements?

According to the guidelines as of February 9, 2024, each e-invoice must contain 35 mandatory fields and 20 optional fields, making a total of 55 fields that need to be completed for successful valid e-invoice submission. SQL Account automates this process by storing all these field records, eliminating the need for repetitive manual entry.

For every e-invoice issued, you can track its status within SQL Account, including whether it has been submitted, validated, deemed invalid, or cancelled. This enables you to effortlessly monitor the status of all e-invoices through SQL Account.

Beyond standard sales invoices, certain transactions require e-invoice, including dividends, foreign income, foreign purchases, payments to agents, and cross-border dealings. SQL Account is equipped to support and comply with these requirements in accordance with LHDN guidelines, covering:

E-Invoice

Consolidated E-Invoice

Self-Billed E-Invoice

Our LHDN E-Invoice Features

When Do You Need To Start Implementing E-Invoicing For Your Business?

E-Invoice will be implemented in phases to ensure smooth transition. The annual turnover or revenue for the implementation of E-Invoice will be determined based on the following:

Taxpayers with audited financial statements: Based on annual turnover or revenue stated in the statement of comprehensive income in the audited financial statements for financial year 2022.
Taxpayers without audited financial statements: Based on annual revenue reported in the tax return for year of assessment 2022.
In the event of a change of accounting year end for financial year 2022, the taxpayer’s turnover or revenue will be pro-rated to a 12-month period for purposes of determining the e-Invoice implementation date.

E-Invoice Implementation Timeline:

Targeted Taxpayers	Implementation Date
Taxpayers with an annual turnover or revenue of more than RM100 million	1 August 2024
Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM100 million	1 January 2025
Taxpayers with an annual turnover or revenue of more than RM5 million and up to RM25 million	1 July 2025
Taxpayers with an annual turnover or revenue of more than RM1 million and up to RM5 million	1 January 2026
Taxpayers with an annual turnover or revenue of up to RM1 million	1 July 2026

We’re taking this concept a step further by developing a comprehensive TIN portal. This portal will provide SQL users with a seamless experience for validating TIN numbers, enabling you to verify the accuracy of tax identification numbers with 100% accuracy through the LHDN server.

LHDN E-Invoice: What are the Penalties for Non-Compliance?

Compliance with the Malaysian Inland Revenue Board’s (LHDN) E-Invoice mandate is obligatory, and failing to adhere to it can lead to significant repercussions for your business. Here’s what you should be aware of:

Fines: Failing to comply with e-invoice regulations can result in significant financial penalties ranging from RM200 to RM20,000.

Imprisonment: non-compliance may even lead to imprisonment for a period not exceeding six months. This highlights the seriousness of the LHDN mandate.

More info: Offences, Fines and Penalties | Lembaga Hasil Dalam Negeri Malaysia

Where The Journey Started

Exciting news for SQL users! In the e-invoice era, SQL will build a feature similar to the current SSM power search function owned by SQL, allowing you to easily access the full SSM complete list for tax computation verification.

We are ready for the July 30th E-Invoice compliance, with our system supporting the console E-Invoices and Self-billed E-Invoices. Our SQL support is available for both the LHDN Production server (LIVE) and Sandbox server, allowing for flexible testing. You can easily toggle between these servers at your convenience.

To get started, check out our two essential resources:

Registration and Setup Guide: Learn how to register for the LHDN MyInvois Portal for E-Invoice, set up ERP for accounting software on MyInvois Portal, and add an intermediary for E-Invoice submissions.
E-Invoice Onboarding Guideline: SQL E-Invoice MyInvois Onboarding Guideline covers mandatory fields, submission processes for E-Invoices, consolidated E-Invoices, and Self-billed E-Invoices, ensuring you meet all compliance requirements.

FAQ

Do I need A Digital Cert?

A digital certificate is a secure electronic document used to verify the identity of a person, device, or server online. It plays a crucial role in ensuring that data transmitted over the internet is encrypted and secure, protecting it from unauthorized access and tampering.

A master certificate, on the other hand, is a primary digital certificate used by an organization to manage and secure communications across its entire system. It serves as a central point of trust, simplifying the management of multiple digital certificates within the organization. By using a master certificate, the SQL Accounting Software System ensures that all its communications are secure, thereby eliminating the need for existing SQL users to purchase separate digital certificates.

However, if you have specific needs or additional security requirements that necessitate the use of a personal digital certificate, you can acquire one from here.

Digital certificates can be purchased from trusted certificate authorities (CAs), and it’s important to choose a reputable provider to ensure the highest level of security. Some of the well-known companies from which you can purchase digital certificates include:

– Pos Digicert Sdn Bhd
– MSC Trustgate.Com Sdn Bhd
– TM Technology Services Sdn Bhd
– Raffcomm Technologies Sdn Bhd

Acquiring a digital certificate from one of these companies will provide you with the assurance that your online interactions and data transfers are securely protected.

How to get started with e-Invoice in your business?

LHDN offers businesses two methods for e-invoice compliance:

MyInvois Portal – The MyInvois Portal is a platform for taxpayers who are unable to issue an e-invoice through their own system or who do not have a system for issuing e-invoices. By logging in via the MyTax Portal, they can utilize the MyInvois Portal to fulfill their e-invoice obligations in accordance with the rules and requirements. Taxpayers can manually fill up all the mandatory fields, submit, view, cancel, or reject invoices, among other actions.
SQL Accounting Software – Recognized as a leading accounting and business solution in Malaysia, trusted by over 270,000 businesses. Our software is user-friendly, supporting e-invoices and ensuring compliance with Malaysia’s Sales and Service Tax (SST), alongside a comprehensive suite for all your operational workflow and accounting standards.