Malaysia v2: Introduction and workflows

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

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.

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.