As of June 28, 2024, Basware has been accredited as a Peppol Service Provider by the Malaysia Digital Economy Corporation (MDEC), the designated Peppol Authority for Malaysia. This recognition underscores our unwavering commitment to delivering advanced, AI-powered invoicing and accounts payable (AP) automation solutions that meet the highest standards of compliance and efficiency. With this milestone, Basware solidifies its leadership in transforming financial operations for businesses worldwide.
Understanding Malaysia’s e-invoicing mandate
Starting from August 1, 2024, Malaysian taxpayers with an annual income or sales exceeding RM 100 million (approximately EUR 20,770,000) will be required to issue electronic invoices. This new mandate will significantly streamline financial processes, ensuring greater accuracy and compliance. Specifically, all invoices will need to be submitted to the Malaysian clearance platform, LHDN Malaysia, where they will be cleared and returned with a QR code. These cleared invoices can then be sent to customers via Peppol, the preferred transfer channel in Malaysia.
The process flow of the mandate, as outlined by MDEC, ensures the integrity and compliance of financial transactions, paving the way for a more efficient and transparent business environment.
Key timelines and scope of the mandate
The mandate applies across various transaction types including business-to-government (B2G), business-to-business (B2B), and business-to-consumer (B2C) e-invoicing. This comprehensive approach ensures that all sectors are aligned with the latest digital and compliance standards.
The mandate will be implemented in phases:
- August 1, 2024: Taxpayers with an annual turnover exceeding RM 100 million
- January 1, 2025: Taxpayers with an annual turnover of more than RM 25 million
- July 1, 2025: All remaining taxpayers
At Basware, we are committed to supporting businesses through these changes with our comprehensive e-invoicing solutions. Our platform offers automatic invoice clearance, seamless format conversion, and reliable invoice delivery and reception via Peppol, ensuring compliance and operational efficiency for our clients.
We look forward to supporting the digital transformation of financial operations in Malaysia, contributing to a more efficient and transparent economic environment. Contact us to learn more, or visit the MDEC website for a comprehensive list of accredited service providers.
