Impact of E-Invoicing (LHDN 2025 Rollout) on SMEs & CoSecs

Admin
Aug 14
2 min read

Feel the buzz of transformation as Malaysia shifts to structured, real-time invoice flows. The impact of e-invoicing (LHDN 2025 rollout) on SMEs and company secretaries is more than paperwork—it’s a smooth current of validation, visibility, and compliance at your fingertips.

What Is E-Invoicing & Why Now?

E-invoicing means sending invoices digitally in structured formats like XML/JSON and validating them instantly through LHDN’s MyInvois system. This upgrade replaces clunky PDFs and paper, anchoring every transaction in a transparent, traceable record.

LHDN 2025 Rollout Timeline (by Turnover)

Phase	Turnover Range	Deadline	Grace Period
1	> RM100M	1 Aug 2024	–
2	RM25M–100M	1 Jan 2025	–
3	RM5M–25M	1 Jul 2025	Until 31 Dec 2025
4	RM1M–5M	1 Jan 2026	–
5	≤ RM1M	1 Jul 2026	–

LHDN has extended grace periods to ease the transition, especially for smaller businesses.

Opportunities & Challenges for SMEs & CoSecs

Benefits

See clarity: Real-time validation smooths invoice flow and sharpens cash flow visibility.
Touch efficiency: Automating invoices cuts costs, speeds up payment cycles, and sharpens record accuracy.
Smell trust: Digitized audit trails elevate transparency—a breath of fresh compliance.

Challenges

Many SMEs are still facing uncertainty:

Only 30% fully understand the mandate; 31% have integrated, while 19% haven’t begun.
Primary obstacles: digitizing data (49%), security fears (47%), and limited technical know-how (45%).

Steps for SMEs & Company Secretaries

Identify your phase and mark your deadline.
Choose submission method:
- MyInvois Portal for low volume or manual use.
- API integration via accounting or Peppol-ready providers for automated workflows.
Train your team and run trials—use MyInvois sandbox to test real-time validation.
Link your systems, like accounting or POS platforms, to streamline data transfer.
Tap support and tools: Look into SME financing or digitalisation grants (e.g., microloans, tax incentives) to ease costs.

FAQ

When must I comply?

Refer to the phased table above—your turnover determines your deadline.

Can I still use manual invoices?

Not after your phase ends. Manual or PDF invoices will not be valid and may incur penalties.

How to submit conveniently?

Use the free MyInvois portal for manual entry, or go with API via providers for seamless automation.

Conclusion

The impact of e-invoicing (LHDN 2025 rollout) reaches beyond regulatory compliance; it's an evolution toward clarity, efficiency, and control. SMEs and CoSecs who embrace this now will glide ahead—feel how smooth operations can become, breathe confident compliance, and watch your workflow transform.

But the good news?

✅ With the right company secretary, you’ll never miss a filing.

✅ At Ashton Corporate, we monitor deadlines, prepare your documents, and keep your Sdn Bhd squeaky clean with SSM & LHDN.

💬 Not sure if you're compliant?