Navigating Regulatory Compliance from LHDN
With Mountaintop e-Invoice Automation, your process for e-Invoice submission is just a fast, easy and reliable. Time is ticking towards 1st June 2024 and should you need to expedite your deployment of e-Invoice that complies with LHDN’s requirements
The government is moving forward with the implementation of e-Invoice for Malaysian businesses according to Datuk Dr. Mohd. Nizom. The crux behind this initiative is tax compliance besides the benefits of digitalization of business processes. According to Datuk Nizom, the e-Invoicing initiative will help to stem leakages in taxes arising out of the shadow economy.
This is an overview of the e-Invoice workflow from the point a sale is made or transaction undertaken, and an e-Invoice is issued by the supplier via MyInvois Portal or API, up to the point of storing cleared e-Invoices on LHDNM’s database for taxpayers to view their respective historical e-Invoices.
The focus of our solutioning is the e-Invoice model via API.
API allows taxpayers to submit e-Invoices directly to LHDNM. Taxpayers would need to configure the API integration by setting up call-backs (specific taxpayers system addresses) and log into the available LHDNM APIs via the Digital Certificate issued by LHDNM (authentication mechanisms).
The e-Invoice structure has been specifically designed to cater to B2B, B2G and B2C transactions to ease e-Invoice procedures for businesses and individual taxpayers. The following formats will be available for transmission of e-Invoice data:
The first is Extensible Markup Language (XML): XML is defined as a simple text-based format for representing structured information. It is one of the most widely used formats for sharing field structured information today. The syntax rules for XML are strict. It will not process files that contain errors and error messages will be sent to inform that rectification is required. Almost all XML documents can be processed reliably by computer software.
User to submit the e-invoice thru API with JSON/XML file format or manual submission thru myInvois Portal
LHDN will validate the e-invoice with all the required fields. (48+6 Mandatory fields)
LHDN to provide validated UIN number and embedded QR Code url link
Buyer/customer can submit a request for rejection within 72 hours. Otherwise, e-invoice submission is considered successful