What is LHDN E-Invoice?
LHDN (Lembaga Hasil Dalam Negeri Malaysia) e-invoice is Malaysia's mandatory electronic invoicing system designed to modernise tax administration and improve compliance across all businesses. Under this system, businesses must submit invoice data electronically to LHDN for validation before issuing invoices to their customers.
The e-invoice initiative is part of Malaysia's broader digital transformation strategy, aimed at reducing tax leakage, improving transparency, and streamlining business operations.
Who Needs to Comply?
As of 2026, all businesses in Malaysia are required to comply with LHDN's e-invoice mandate, regardless of revenue size. The rollout was phased:
- Phase 1 (August 2024): Businesses with annual turnover exceeding RM100 million
- Phase 2 (January 2025): Businesses with annual turnover exceeding RM25 million
- Phase 3 (July 2025): Businesses with annual turnover exceeding RM5 million
- Phase 4 (January 2027): Businesses with annual turnover exceeding RM1 million
If your business operates in Malaysia, you need to be e-invoice compliant now.
Types of E-Invoices
LHDN recognises several types of e-invoices that businesses may need to submit:
Standard Invoice
The most common type — issued for regular sales transactions between a supplier and buyer.
Self-Billed Invoice
Issued by the buyer instead of the supplier in specific situations, such as payments to agents, distributors, or foreign suppliers.
Consolidated Invoice
Allows businesses to group multiple small transactions (typically B2C) into a single e-invoice submission, simplifying compliance for retail and similar businesses.
Credit Note
Issued to adjust or reduce the amount of a previously issued invoice — commonly used for returns, discounts, or pricing corrections.
Debit Note
Issued to increase the amount of a previously issued invoice — used for additional charges or undercharges.
How to Submit E-Invoices to LHDN
There are several methods to submit e-invoices to LHDN:
1. MyInvois Portal
LHDN provides the MyInvois portal where businesses can manually key in invoice data. This works for low-volume submissions but becomes impractical for businesses processing many invoices.
2. API Integration
Businesses can integrate directly with LHDN's API to automate submissions. This is the preferred method for medium to large businesses, as it enables real-time submission without manual intervention.
3. Third-Party Platforms (Recommended)
Platforms like TaxGo act as intermediaries, simplifying the submission process. Instead of building and maintaining your own API integration, you can use TaxGo's web portal, API, FTP upload, or Excel/CSV import to submit invoices effortlessly.
What Information is Required?
Every e-invoice submitted to LHDN must include:
- Supplier details: Name, TIN, registration number, address, contact information
- Buyer details: Name, TIN (for B2B), registration number, address
- Invoice details: Invoice number, date and time, currency
- Line items: Description, quantity, unit price, tax amount, total
- Tax information: Tax type, tax rate, tax amount
- Summary: Total excluding tax, tax amount, total including tax
QR Code Requirement
Once an e-invoice is validated by LHDN, a unique QR code is generated. This QR code must be included on the invoice document shared with the buyer. The QR code links to LHDN's validation page, allowing anyone to verify the invoice's authenticity.
With TaxGo, QR codes can be automatically embedded into your existing invoice templates — no need to redesign your invoices.
Best Practices for E-Invoice Compliance
- Automate your submissions — Manual entry is error-prone and time-consuming. Use API or platform-based submissions.
- Validate data before submission — Ensure all required fields are complete and accurate to avoid rejection.
- Keep records — Maintain copies of all submitted e-invoices and their validation status.
- Monitor for rejections — Set up alerts for failed submissions so you can correct and resubmit promptly.
- Stay updated — LHDN may update requirements. Use a platform like TaxGo that automatically adapts to regulatory changes.
How TaxGo Simplifies E-Invoice Compliance
TaxGo is built specifically for Malaysian businesses to make LHDN e-invoice compliance effortless:
- Multiple submission methods — API, FTP, Excel/CSV upload, or web portal
- All invoice types supported — Standard, self-billed, consolidated, credit notes, and debit notes
- QR code embedding — Automatically embed QR codes into your existing invoice designs
- Real-time tracking — Monitor submission status and get instant notifications
- Email delivery — Send invoices with embedded QR codes directly to customers
- Enterprise security — Bank-grade encryption and PDPA compliance
Getting Started
Ready to simplify your e-invoice compliance? Getting started with TaxGo takes less than 10 minutes:
- Sign up and connect your LHDN credentials
- Choose your submission method — upload Excel, set up FTP, or integrate via API
- Submit your first invoice and monitor it in real-time
Contact us at hello@taxgo.com.my to learn more or get started today.