e-Invoicing in Malaysia is designed to ensure compliance with local tax regulations by providing a digital representation of transactions between suppliers and buyers.
These transactions are formatted in a structured file specified by the Inland Revenue Board of Malaysia (IRBM) for validation purposes. It integrates seamlessly with existing systems to minimize manual effort, ensuring accuracy and efficiency in tax reporting.
The integration of ClearTax's e-invoicing API with LS Central becomes an integral part of the sales process, automatically generating e-invoices after each sale at the POS and submitting them directly to the tax authority. LS Central supports the specific requirements for e-Invoicing through configurable features, including e-Invoice Catalogs, e-Invoice Setup, e-Invoice Logs, and other settings.
Definitions, acronyms, and abbreviations
| Term | Description |
|---|---|
| MY | Malaysia. |
| IRBM | Inland Revenue Board of Malaysia - the primary tax authority responsible for tax administration and compliance in Malaysia. |
| e-Invoicing | Electronic invoicing - the digital creation, exchange, and processing of invoices between buyers and suppliers, often required for tax compliance and business efficiency. |
| ClearTax | e-Invoicing software that facilitates the generation, validation, and submission of e-invoices, helping businesses comply with local regulations. |
| API | Application Programming Interface, which is a set of rules that allow software applications to communicate with each other. |
| MSIC | Malaysia Standard Industrial Classification - a system used to classify industries and businesses in Malaysia for statistical and regulatory purposes. |
See also