How does e-Invoicing change my bookkeeping?
E-Invoicing means sales invoices are validated through LHDN's MyInvois system, so your records must tie each sale to a validated e-Invoice with its unique identifier. Bookkeeping changes in how invoices are issued, corrected and stored, not in how profit is calculated. Tax rules are covered elsewhere.
Under e-Invoicing, taxpayers in scope issue invoices in a structured format that LHDN validates. For the accounting side:
- Invoice numbering and matching: each sale should match a validated e-Invoice, which carries a unique identification number and validation date. Ledgers should reference it
- Corrections: a validated e-Invoice cannot simply be edited. Errors are fixed through a cancellation within 72 hours of validation, or afterwards through a credit note or debit note, so your books must record those documents
- Purchases: you receive e-Invoices from suppliers; match them to bills and keep them as supporting documents
- Storage: keep the e-Invoice data and copies for the usual seven years
- Software: your accounting or billing system may need to connect to MyInvois directly or through a provider
- Month-end: reconcile e-Invoices issued to the sales ledger so nothing is missing or duplicated
Good bookkeeping habits (monthly sales reconciliation, clear customer details such as TIN) become more important, because LHDN can now see invoice data.
The tax effect, such as the expense claim rule, is outside this section. Confirm technical points in LHDN's current e-Invoice guidelines.
Legal basis
- Income Tax Act 1967, s.82
- LHDN e-Invoice Guideline
Sources
Applies to From 2024, phased · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- How long must a Malaysian company keep its accounting records?A company must keep accounting records for seven years after the transactions they record were completed. For tax, documents must be kept for seven years from the end of the relevant year of assessment. Use whichever period ends later.
- How soon must transactions be recorded in the books?Under section 245 of the Companies Act 2016, entries must be made in the accounting records within 60 days after the transaction is completed. Leaving the books for a full year-end rush is therefore not compliant.
- What do a company's financial statements contain?A company's financial statements normally include a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity, a statement of cash flows and notes with accounting policies. The set must give a true and fair view.
- Who prepares and approves a company's financial statements?Directors are legally responsible for the financial statements. An in-house accountant or external firm often drafts them, but the board approves them by resolution and signs a directors' statement. The statements are then presented to the members.
- What is the difference between MPERS and MFRS?MFRS is the full set of Malaysian standards, aligned with IFRS, used by listed and regulated entities. MPERS is a shorter, simplified framework based on the IFRS for SMEs standard, designed for private entities. Both give a true and fair view; MPERS has fewer disclosures and simpler rules.