# Malaysia v2: Introduction and workflows

The two Malaysia e-invoicing solutions in API v2 (legacy), LHDN and Peppol, and the B2B and B2C workflows for LHDN e-invoices.

> **Legacy API v2**
>
> This page documents API v2 for Malaysia, which is no longer developed. Start new integrations on the current API: see the [Unify API reference](https://docs.complyance.io/api-reference/unify/) and the [Malaysia guide](https://docs.complyance.io/countries/my/).

Complyance offers two e-invoicing solutions for businesses in Malaysia:

- **Peppol solution**: send and receive e-invoices over the Peppol network, in a standard format that meets international standards.
- **Non-Peppol (LHDN) solution**: e-invoicing for businesses that must comply with the rules of Malaysia’s Inland Revenue Board (LHDN).

## LHDN B2B workflow

![Malaysia LHDN B2B e-invoicing flow between supplier, buyer and IRBM](https://cdn.prod.website-files.com/6595090b1c3579f5d318fc1b/66dfe80ed0a21dcfcd84c00d_malaysia%20e-invoicing%20B2B%20Flow.png)

This workflow covers issuing and managing B2B e-invoices in Malaysia under LHDN (Lembaga Hasil Dalam Negeri) rules: issuing, validation, storage and notifications between suppliers, buyers and the IRBM system.

The LHDN B2B e-invoicing API automates e-invoicing between suppliers, buyers and LHDN. Invoices are issued, validated, shared and stored through the IRBM Cloud and database.

The main parties in this flow are:

- **Supplier**: issues invoices, credit and debit notes, and refund notes.
- **Buyer**: receives and manages the invoice, and can request a cancellation.
- **IRBM Cloud**: stores and processes invoices.
- **IRBM Database**: stores validated invoices for record-keeping.

## LHDN B2C workflow

This workflow shows how B2C e-invoices are issued and managed from a point-of-sale (POS) machine, through the compliance cloud platform and LHDN.

![LHDN B2C workflow from POS receipt to consolidated e-invoice](https://cdn.prod.website-files.com/6595090b1c3579f5d318fc1b/6751822e694a2f7075bb3f15_malaysia-flow%20%286%29%20%281%29.png)

### 1. POS machine receipts

- The buyer makes a purchase and receives a **normal receipt** from the supplier’s **POS machine**, as in current business practice.
- No e-invoice is needed at this step.

### 2. Sending receipts to the cloud

- The POS machine sends the receipt details to the **compliance cloud platform**, which can later generate an e-invoice from them.

### 3. E-invoice requested later

- **Step 3a:** the buyer can request an e-invoice later. The request goes to **Manager Assist**.
- **Step 3b:** the buyer can also scan a **QR code** on the receipt to request an e-invoice.

The request goes to the compliance cloud platform, which directs the buyer to a portal to fill in the details for the e-invoice.

### 4. E-invoice requested at once

- **Step 4a:** if the buyer needs an e-invoice straight away, they open a link sent by **SMS** to their registered phone number. The cloud platform processes this request too.

### 5. No e-invoice needed

- If the buyer does not request an e-invoice, the process ends and the receipt stands as usual.

### 6. Supplier monthly consolidation

- The supplier consolidates all receipts **monthly**, ready to submit to LHDN.

### 7. E-invoice validation

- The supplier issues a **consolidated e-invoice** in **XML** or **JSON** and submits it to **LHDN** through the compliance cloud platform.
- LHDN validates the transactions against its rules.

With this flow, suppliers and buyers comply with LHDN’s e-invoicing rules, and buyers can still ask for an e-invoice at once or later.

Source: https://docs.complyance.io/legacy/v2/malaysia/introduction/