Getting your Trinity Audio player ready...
|
The Ministry of Communications and Digital (KKD), in partnership with the Malaysia Digital Economy Corporation (MDEC), is implementing the National e-Invoicing Initiative to modernise the way businesses send invoices. This initiative aims to establish an interoperable e-invoicing framework for local service providers and promote the use of e-invoices in Malaysia, aligning with the country’s digitalisation agenda and taxation system.
E-invoicing offers several benefits for businesses, including reduced tax compliance costs, simplified record-keeping, streamlined cross-border data exchange, and the elimination of manual data entry and paper usage. Additionally, this initiative indirectly encourages companies to support environmental, social, and governance (ESG) practices.
In 2022, MDEC signed an MoU with the Inland Revenue Board (IRB) to coordinate the nationwide implementation of the initiative for tax compliance. This collaboration focuses on planning, strategy, and development related to the initiative.
The e-Invoicing Initiative aligns with the 12th Malaysia Plan (RMK12) for 2021-2025, with a strong emphasis on enhancing digital service infrastructure and the digitisation of tax administration. It also fits within the National E-commerce Strategic Roadmap (NESR) 2.0 and the Malaysia Digital Catalytic Programmes (Pemangkin) under MDEC’s oversight in the Digital Trade sector.
The business-to-business (B2B) e-invoicing uses the Peppol framework, which provides technical specifications for e-procurement solutions and Enterprise Resource Planning (ERP) systems, enabling systematic interoperability and e-invoice exchange.
MDEC was designated as the Peppol Malaysia Authority, responsible for accrediting service and solutions providers, ensuring technical standards and framework compliance, and promoting e-invoicing adoption.
A discourse talk discussion titled “A Vision For Interoperability: E-Invoicing and its Potential in Digital Trade” is scheduled during the Malaysia Digital Expo 2023 (MDX 2023) from 6 November to 8 November 2023 at the Malaysia International Trade and Exhibition Centre (Mitec). The panel of speakers includes representatives from OpenPeppol, as well as Peppol Authorities in Japan, Singapore, and Australia.
The National e-Invoicing Initiative, driven by KKD and MDEC, signifies a significant step in Malaysia’s digitalisation journey. It aims to enhance business efficiency, reduce tax compliance costs, simplify record-keeping, and promote ESG responsibility.
MDEC’s role as the Peppol Malaysia Authority ensures standardisation and compliance for widespread e-invoicing adoption. The discourse talk discussion during MDX 2023 offers a global perspective on interoperability and e-invoicing’s potential in digital trade.
The National e-Invoicing Initiative in Malaysia is intricately connected to various government programs and strategies. It strongly aligns with the 12th Malaysia Plan (RMK12), emphasising digital infrastructure and tax administration digitisation.
This initiative is also in harmony with the National E-commerce Strategic Roadmap (NESR) 2.0, within the Malaysia Digital Catalytic Programmes (Pemangkin), bolstering Malaysia’s digital trade sector. Collaboration with the Inland Revenue Board (IRB) enhances tax compliance.
Adopting the Peppol framework for business-to-business e-invoicing supports international standards and interoperability. These interrelated initiatives collectively drive Malaysia’s digital transformation, bolstering its competitiveness, and simplifying business operations while enhancing tax compliance.
OpenGov Asia reported earlier that, in 2022, MDEC signed a memorandum of understanding (MoU) with the Malaysian Inland Revenue Board (HASiL) to establish strategic cooperation for the implementation of the National eInvoicing Initiative (National e-Invoicing Initiative).
Through this MoU, MDEC and HASiL have been working together to coordinate the implementation of the National e-Invoicing Initiative with the tax compliance model across the country as well as sharing the implementation status and framework regarding planning, strategy, and development in relation to the implementation of the initiative.