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E-Invoice With SQL Account

Make the switch to SQL Account and ensure your business stays compliant with LHDN E-Invoice.

Streamline Your Malaysian Business For E-Invoicing With SQL Account

The Malaysian Inland Revenue Board (LHDN) is making e-invoice mandatory for tax purposes. SQL Account is certified to comply with these regulations, making it a seamless solution for your business. E-invoicing is being rolled out in stages, with the first group of businesses needing to be compliant by August 1, 2024. By July 1, 2025, all businesses in Malaysia, regardless of size, will be required to use e-invoices. Make the switch to SQL Account and ensure your business stays compliant with LHDN regulations.

Feed Customer TIN Into SQL Automatically

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💡 No more asking customers for their TINS one by one

SQL Account is the only accounting software that automatically fetches your customers TIN (Tax Identification number), saving your countless hours of manual effort. 

E-INVOICE TIMELINE

WHERE THE JOURNEY STARTED

Exciting news for SQL users! In the e-invoice era, SQL will build a feature similar to the current SSM power search function owned by SQL, allowing you to easily access the full SSM complete list for tax computation verification.
 

We’re taking this concept a step further by developing a comprehensive TIN portal. This portal will provide SQL users with a seamless experience for validating TIN numbers, enabling you to verify the accuracy of tax identification numbers with 100% accuracy through the LHDN server.

✅ May, 02 
SQL’s Tax Identification Number Portal

With the implementation of E-Invoices, a valid TIN is mandate. Without it, E-Invoice submissions may be rejected or face validation delays. Instead of manually emailing each customer and supplier to request their TIN, SQL has created a TIN Validation Portal where companies only need to submit their TIN once at SQL TIN Portal. SQL will validate your TIN submission with the LHDN Portal. All your suppliers using SQL will no longer need to ask for your TIN. With over 270,000 companies in the SQL user base, there's a high probability that 70% of your suppliers are SQL users. If you haven't updated your company's TIN yet, you can do so here.

✅ May, 16 
SQL E-Invoice Upgrade V1

Companies gearing up for e-invoicing starting on 2024/08/01 should ensure their customer master data includes TIN information. To streamline the process of collecting the required TINs, SQL users can rely on our intelligent outgoing email feature. This feature automatically filters and sends TIN requests only to customers not yet in the SQL Portal, preventing duplicate or excessive requests to the same customers.

✅ May, 30 
SQL E-Invoice Upgrade V2
(Version 850)
SQL AutoTIN Sync :

With this version eliminates the need for manual, time-consuming processes associated with customer Tax Identification Number (TIN) management. A single click facilitates the automatic update of all available and validated TINs within your customer master records. This functionality leverages the LHDN API to ensure 100% accuracy, thereby mitigating the risk of encountering invalid TINs during e-invoice issuance. The entire e-invoicing process is streamlined, promoting greater efficiency and reducing the potential for delays.

✅ July, 02 
SQL Public Cloud: Trial Database for E-Invoice Submission via Preprod.Myinvois Ready

  • New Upgraded Database Structure (Different from existing commercial copy)

  • Registered MyTax Invoice Server Ready (Facilitate the LHDN linking trial)

  • Digital Cert Ready

Users can test raising sales invoices in their company name (SQL as the seller, customer company TIN as the buyer) for testing purpose. Once successfully validated, buyers can log into their accounts at https://preprod.myinvois.hasil.gov.my/ to view the document details recorded on their MyInvois "Document | Received" page successfully.

Experience the long-awaited Real LHDN E-Invoice validation process at 
https://connect.sql.com.my/ . [ User Guideline ]

✅ July, 09 
Release of Purchase Invoice Feature

The Purchase Invoice screen now allows users to select validated supplier bills (listed on the LHDN server) and load them into the SQL Purchase Invoice screen. The amounts will accurately match the validated amounts provided by the suppliers.
[ More details ]

✅ July, 14 
E-Invoice End User Release

Major database upgrades for LHDN compliance are now available. This release includes enhancements that ensure full compliance with LHDN requirements. Users can now seamlessly integrate with LHDN, ensuring their invoices meet all necessary regulations and standards.

How SQL Accounting Assists Your Business In Adhering To LHDN E-Invoice Requirements?

According to the guidelines as of February 9, 2024, each e-invoice must contain 35 mandatory fields and 20 optional fields, making a total of 55 fields that need to be completed for successful valid e-invoice submission. SQL Account automates this process by storing all these field records, eliminating the need for repetitive manual entry.

For every e-invoice issued, you can track its status within SQL Account, including whether it has been submitted, validated, deemed invalid, or cancelled. This enables you to effortlessly monitor the status of all e-invoices through SQL Account.

Beyond standard sales invoices, certain transactions require e-invoice, including dividends, foreign income, foreign purchases, payments to agents, and cross-border dealings. SQL Account is equipped to support and comply with these requirements in accordance with LHDN guidelines, covering:

When Do You Need To Start Implementing E-Invoicing For Your Business?

E-Invoice will be implemented in phases to ensure smooth transition. The annual turnover or revenue for the implementation of E-Invoice will be determined based on the following:

  1. Taxpayers with audited financial statements: Based on annual turnover or revenue stated in the statement of comprehensive income in the audited financial statements for financial year 2022.

  2. Taxpayers without audited financial statements: Based on annual revenue reported in the tax return for year of assessment 2022.

  3. In the event of a change of accounting year end for financial year 2022, the taxpayer’s turnover or revenue will be pro-rated to a 12-month period for purposes of determining the e-Invoice implementation date

E-Invoice Implementation Timeline:

Targeted Taxpayers 
Taxpayers with an annual turnover or revenue of more than RM100 million    

Implementation Date: 1 August 2024

Targeted Taxpayers 
Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM100 million    

Implementation Date: 1 January 2025

Targeted Taxpayers 
Taxpayers with an annual turnover or revenue of less than RM25 million    

Implementation Date: 1 July 2025

LHDN E-Invoice: What Are The Penalties For Non-Compliance?

Compliance with the Malaysian Inland Revenue Board’s (LHDN) E-Invoice mandate is obligatory, and failing to adhere to it can lead to significant repercussions for your business. Here’s what you should be aware of:

Fines: Failing to comply with e-invoice regulations can result in significant financial penalties ranging from RM200 to RM20,000.

 

Imprisonment: non-compliance may even lead to imprisonment for a period not exceeding six months. This highlights the seriousness of the LHDN mandate.

More info: Offences, Fines and Penalties | Lembaga Hasil Dalam Negeri Malaysia

How To Get Started With E-Invoice In Your Business?

LHDN offers businesses two methods for e-invoice compliance:

  1. MyInvois Portal – The MyInvois Portal is a platform for taxpayers who are unable to issue an e-invoice through their own system or who do not have a system for issuing e-invoices. By logging in via the MyTax Portal, they can utilize the MyInvois Portal to fulfill their e-invoice obligations in accordance with the rules and requirements. Taxpayers can manually fill up all the mandatory fields, submit, view, cancel, or reject invoices, among other actions

  2. SQL Accounting Software – Recognized as a leading accounting and business solution in Malaysia, trusted by over 270,000 businesses. Our software is user-friendly, supporting e-invoices and ensuring compliance with Malaysia’s Sales and Service Tax (SST), alongside a comprehensive suite for all your operational workflow and accounting standards.

Here's why SQL Accounting is your perfect partner for LHDN E-Invoice compliance:

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Built-In Compliance

SQL Account Ensures Your E-Invoices And SST Adhere To All LHDN Regulations, Saving Your Time And Minimizing Errors.

1 Software, 3 Platforms

SQL Account offers a trio of powerful capabilities, starting with a highly customizable on-premise system tailored to your unique workflow, extending to cloud services that provide unparalleled flexibility and accessibility from anywhere at any time, and culminating with a mobile application that enables the issuance of e-invoices from any device. These components are seamlessly integrated, ensuring a cohesive and efficient connection with your SQL Account.

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Expert Support

Our Team Of E-Invoice Specialists Has In-Depth Knowledge Of The E-Invoice Mandate And Is Here To Guide You Every Step Of The Way.

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Reach out to SQL today for a complimentary demo of our SQL Accounting software. Begin enhancing your business efficiency by adopting SQL, and enjoy the dual advantages of improved operational efficiency and compliance with e-invoice requirements.

E-Invoice Articles

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