Peppol eInvoicing in Malaysia
Malaysia Digital Economy Corporation (MDEC) became a Peppol Authority in mid-2023, signalling the country’s firm commitment to modernising business processes and bringing more accuracy to tax reporting and collection.
Through a clear implementation timeline and the establishment of a local version of PINT, the Peppol International Billing standard, Malaysian businesses are well placed to take advantage of eInvoicing with local and international partners.
Are you a:
As the preferred network of the Malaysian government, you can become an early adopter of Peppol with Tickstar—one of the world’s biggest and most reliable infrastructure providers. No matter your operational requirements, we will have you leveraging the network in just a few steps!
Benefits of Peppol eInvoicing with Tickstar
With Peppol’s global network, one connection allows you to efficiently and securely exchange e-Documents with verified local and international B2G and B2B partners. Tickstar handles setup and maintenance, while you enjoy the benefits.
Cost savings
einvoicing is estimated to save public sector authorities and private businesses billions per year — up to 66% compared to paper and PDF invoices. While the MDEC hasn’t released any figures of its own, a recent study commissioned by Singapore’s Peppol Authority shows that it costs around $8 (¥840) to process an eIinvoice, with the format also helping businesses to avoid the $72 (¥7,559) rectification cost that comes from manual entry errors.
Faster invoice payout
Peppol’s direct secure connection without middlemen allows for faster receival and even the automation of payments, while drastically cutting the risk of fraud that comes from sending eInvoices through email.
Built to incorporate Malaysian regulations
Malaysia’s MY-PINT standard is an extension of Peppol BIS Billing 3.0, meaning it is compatible with the global Peppol network while also incorporating local specifications.
User-friendly interface and advanced tools
Refined over 11 years by Tickstar’s Peppol pioneers, we offer expert tools that eclipse those offered by our competitors. This includes our Peppol Validator, Participant Lookup API and Service Metadata Publisher (SMP), designed to ensure you get the most out of your eInvoicing experience within your own applications!
Continued compliance regardless of changes
The Peppol standard is consistently refined to ensure it takes into account changing regulations. Similarly, Tickstar makes sure it updates its own infrastructure so you’ll never be left behind global developments.
Peppol standard is the world standard
As Peppol grows in the Asia-Pacific region, so do opportunities for businesses who wish to transact across borders. Peppol provides the seamless architecture for this to occur safely and without the hassle that would normally come with establishing custom connections.
eInvoicing in Malaysia
While other countries had been mandating and refining eInvoicing regulations and systems for years, Malaysia only started to really focus attention on this area in 2022, when the Ministry of Finance stated its intention to implement eInvoicing from 2023 onwards. Coordination between public and private entities soon followed and guidelines for the implementation of mandatory eInvoicing were introduced mid-2023.
In August 2023, Malaysia Digital Economy Corporation (MDEC) was established as the Peppol Authority. As well as being responsible for the promotion of interoperable eInvoicing among businesses (B2B), MDEC works hand-in-hand with the Inland Revenue Board of Malaysia (LHDN—Lembaga Hasil Dalam Negeri), which is responsible for tax reporting and compliance.
Thanks to the strong working relationship of the MDEC and LHDN, there are a clear set of processes that businesses should follow when transacting with partners both within Malaysia and internationally.
MyInvois portal
Following the continuous transaction controls model (CTC), invoice data must be cleared through submission to the LHDN via the MyInvois portal for tax reporting and compliance purposes. This portal can be accessed manually, which is suitable for small- to medium-sized business, or through API, meaning enterprises transacting large amounts of eInvoices can continue to use their own ERP systems that allow for a greater degree of automation.
Peppol and MY-PINT for interoperable eInvoicing
Under Malaysia’s National eInvoicing Initiative, a country-wide framework is being established to standardise specifications and message formats for interoperability between the range of accounting software/ERP systems that are used—which is where Peppol comes in.
In the words of MDEC:
The Peppol eInvoicing framework is considered to be the most suitable for implementation in Malaysia due to its maturity, interoperability, and well-governed standards. It is also the most widely used eInvoicing framework globally, adopted by more than 20 countries.
With Peppol at the centre of the country’s eInvoicing strategy, MY-PINT, the Malaysia-specific version of the Peppol International Invoice (PINT), has been established. In recognition of the growing number of international entities using Peppol, PINT has come along as an extension of Peppol BIS Billing 3.0—a standard that was originally designed for tax reporting in line with European standards—allowing non-European members to include their own local specifications while remaining interoperable with other jurisdictions.
PINT became available for use as part of the Peppol Network from 1 July 2023, and Malaysia is one of the first countries to make use of this initiative, ensuring local and international businesses working within the Malaysian market stay compliant.
Mandatory eInvoice implementation timeline
As developments in the area of e-Documentation continue to come thick and fast, legislation and documentation is always being updated to best serve government and tax-paying businesses of all sizes.
To this end, in late October 2023 the Malaysian Government released an updated eInvoice guideline (2.1) and a new data catalogue. As mentioned in the guideline, the rollout of mandatory eInvoicing will be done in a tiered fashion, with bigger businesses required to comply earlier than smaller ones.
1 August 2024:
Taxpayers with an annual turnover or revenue of more than RM 100 million.
1 January 2025:
Taxpayers with an annual turnover or revenue of more than RM 25 million and up to RM 100 million.
1 July 2025:
All other taxpayers.
With the number of Peppol participants worldwide growing from 590,000 to 700,000 over the course of 2023 (echoing similar substantial growth in 2021 and 2022), now is the perfect time for Malaysian public sector bodies and private businesses to take advantage of the security, interoperability and efficiency the network provides. By partnering with Tickstar, a pioneering Peppol infrastructure provider, you can become one of the entities helping Malaysia to reach its potential.
About Tickstar
Tickstar has been a certified Peppol service provider since 2012. Based in Sweden, the company works with governmental bodies, large enterprises, and ERP providers around the world. As the number of Peppol participants within the network continues to grow, so does Tickstar’s footprint, with a reputation as a dependable partner, providing the infrastructure for in-house use or third-party organisations that wish to deliver Peppol services to market.
In 2021, Tickstar was acquired by Xero—a global cloud accounting software platform. Xero saw the strong connection between our purpose and theirs, which is to help businesses thrive through the use of better tools, information and connections. Tickstar has enabled eInvoicing functionality for all Xero customers with an ongoing subscription.
We understand the challenges that public sector organisations and private companies face in keeping up with domestic and international regulations. By signing up with Tickstar, you can efficiently exchange eInvoices and other electronic documentation with any partner, while staying compliant at all times.
About Peppol
Peppol is a set of standards and technical specifications ensuring the secure and rapid transfer of electronic documents globally. Peppol’s components ensure interoperability of eInvoices and other E-procurement documents, facilitating easier global trade and full compliance with the regulatory requirements and taxation laws of transacting parties’ respective countries. It also significantly cuts down on instances of invoice fraud, a persistent problem when transacting through email or other unsecured messenger service.
The communication nodes in the network, called Access Points, allow direct connections between verified participants to send and receive standardised documentation in what is called the Four-corner model. In short, Peppol is a connect once, reach all network.
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What's inside
- Peppol in context
- Four-corner model and technology explained
- Peppol Access Points and SMPs – Their roles in the network
- Statistics and insights from Tickstar
- How you can get the most out of Peppol