What is the process for submitting an invoice to LHDN for validation?
LHDN has provided two alternative methods for submitting invoices.
Taxpayers can use either one or both these methods to submit documents to LHDN for validation.
MyInvois portal
Businesses can submit invoices manually by logging in to LHDN’s MyInvois portal.
The process of submitting invoices via the MyInvois portal can be quite tedious as there are a number of required fields that need to be completed before the invoice can be validated.
This would be more suited for smaller businesses that do not have an accounting solution and possibly only issue a small number of invoices.
Don’t have an accounting solution and
need help with submitting e-Invoices?
Application Programming Interface
Application Programming Interface, or API, allows other applications to submit invoices to LHDN directly.
LHDN has provided guides for accounting solution providers on how to interface with their portal.
Accounting solutions that are e-Invoice ready will be able to extract the necessary invoice information, format it into either an XML or JSON format, and submit it electronically via the internet to LHDN for validation.
Need more information?
What is an e-Invoice?
An e-Invoice is an electronic file that contains information about the invoice that can be transmitted via the internet.
The electronic file is basically a text file that is in a structured format which is understood by computers.
For LHDN e-Invoicing purposes, the format used is either XML or JSON.
Both these formats allow for the exchange of data electronically between different applications and systems in a standardized manner.
What is not an e-Invoice?
A PDF or image file of the invoice, although you can send it to your customer via email is NOT an e-Invoice.
Transactions affected
What transactions need to be submitted to LHDN for validation?
Although it’s named e-Invoice, the requirement is that the following transactions need to be submitted for validation.
All sales related transactions
- Invoices
- Credit notes
- Debit notes
- Refund notes
Refund notes are for when a refund is made to a customer such as if the customer overpaid.
Self billed transactions
In addition to the sales related transactions, certain transactions like purchases from overseas suppliers also need to be submitted to LHDN for validation.