KUALA LUMPUR, Nov 1 — The Ministry of Communications and Digital (KKD), through the Malaysia Digital Economy Corporation (MDEC), is implementing the National e-Invoicing Initiative to drive interoperable electronic invoicing by digitalising how businesses send invoices to other businesses.
In a statement today, it said this initiative will establish an interoperable e-invoicing framework for local service providers and encourage the use of e-invoice in business activities in Malaysia, in line with the country’s digitalisation agenda.
It will also complement the taxation system implemented by the Inland Revenue Board (IRB). Businesses using e-invoicing will receive various benefits, primarily related to tax compliance.
“In addition to improving the efficiency of business operations, e-invoicing can reduce tax compliance costs, simplify record-keeping, facilitate cross-border data exchange through business transactions, and eliminate manual data entry and paper usage,” MDEC said.
The initiative indirectly encourages companies to fulfil their commitments to environmental, social, and governance (ESG) practices.
In 2022, MDEC signed a memorandum of understanding (MoU) with the IRB to coordinate the initiative’s implementation for tax compliance nationwide and to share the status of the framework related to the planning, strategy, and development related to the initiative.
In line with the 12th Malaysia Plan (RMK12) 2021-2025, the e-Invoicing Initiative also focuses on strengthening the digital service infrastructure and, consequently, the digitisation of tax administration.
The initiative also aligns with the National E-commerce Strategic Roadmap (NESR) 2.0 and the Malaysia Digital Catalytic Programmes (Pemangkin) under the Digital Trade sector overseen by MDEC.
The business-to-business (B2B) e-Invoicing uses the Peppol framework, which consists of technical specifications for the existing e-procurement solution or Enterprise Resource Planning (ERP) systems, allowing for more systematic interoperability between different business systems and facilitating the exchange of e-invoices.
Recently, MDEC was appointed as the Peppol Malaysia Authority, accrediting service providers and solutions providers to establish technical standards and overall framework compliance in Malaysia and promote the use of e-invoicing in businesses in Malaysia.
Meanwhile, MDEC said a discourse talk discussion on “A Vision For Interoperability: E-Invoicing and its Potential in Digital Trade” will be held during the Malaysia Digital Expo 2023 (MDX 2023) slated to take place from November 6 to November 8 at the Malaysia International Trade and Exhibition Centre (Mitec).
The panel of speakers includes representatives from OpenPeppol as well as Peppol Authorities in Japan, Singapore, and Australia.
Further information on MDX 2023 can be obtained at https://mdec.my/mdx.
— Bernama
