Are you ready for e-invoicing? Here is what you need to prepare your company

As Malaysia embarks on the digital transformation journey with the mandatory implementation of the e-invoicing system, it is imperative for businesses to adapt and align their operations with this innovative change. The transition, scheduled to commence on June 1, 2024, will be executed in stages, targeting companies based on their turnover, and culminating with the inclusion of all remaining taxpayers by January 1, 2027.

E-invoicing, or electronic invoicing, is a system where businesses can submit invoices electronically, replacing the traditional paper-based invoicing, making the process faster, more efficient, and environmentally friendly. Hypernix offers a solution that can seamlessly connect your existing accounting software to the government’s e-invoicing system through an API – think of this as a messenger that helps different software ‘talk’ to each other and exchange information. This means you don’t have to invest in new software or change your business processes – it’s business as usual!

By using Hypernix’s solution, you can expedite the e-invoicing process, which is particularly beneficial as the Inland Revenue Board (LHDN) has mentioned there might be delays on their platform due to processing a large number of transactions. So, not only does this solution save you from additional costs and adjustments, but it also ensures quicker processing times for your invoices.

Understanding the E-Invoicing Landscape

LHDN has been proactive in providing comprehensive guidelines, detailing the e-invoicing implementation process and the necessary actions businesses should undertake. While the document is informative, the complexity of tailoring current accounting systems or Enterprise Resource Planning (ERP) software to integrate with IRB’s e-invoicing portal may pose challenges for the ordinary businessman.

What is API

An API, or Application Programming Interface, is like a set of rules that allows one piece of software or program to interact with another. In layman’s terms, you can think of an API as a ready-available script that helps your accounting software connect and communicate with LHDN’s cloud or database. It’s like a translator that helps two different languages (in this case, software) understand each other so that they can work together seamlessly. This connection allows for the exchange of information and transactions between your accounting software and the government’s system, making processes like e-invoicing smoother and more efficient.

Seamless Integration with Our API Solution

As IT experts specializing in business and ERP solutions, we understand the intricacies involved in this transition. We are developing an API that will seamlessly integrate with your existing accounting software, alleviating the headaches associated with reconfiguration to meet IRB’s requirements. Our solution aims to simplify the process of generating, validating, and managing e-invoices, ensuring compliance while enhancing efficiency.

Addressing the Complexities

The e-invoicing system necessitates extensive information, with approximately 60 fields required, encompassing details on both the supplier and the purchaser. It covers a wide spectrum of transactions, both domestic and international, and raises several questions, particularly around transactions that do not enter the profit and loss account. Our team is diligently working to address these uncertainties and provide clarity, ensuring a smooth adaptation for your business.

Proactive Preparation for Compliance

For businesses in the first batch of compliance by June 1, 2024, it is crucial to identify transactions affected by the e-invoicing system and align your software with IRB’s portal. This transition period offers an opportunity to scrutinize the tax treatment of various items and rectify any discrepancies. Rest assured, the IRB’s team is readily available to assist taxpayers throughout this journey.

Hypernix: Your Partner in E-Invoicing Transition

We are committed to assisting you in navigating this digital shift, providing expert guidance and innovative solutions to ensure a seamless transition to e-invoicing. Our API solution is designed to integrate effortlessly with your accounting software, addressing the complexities and uncertainties, and allowing you to focus on your core business operations.

Hypernix offers versatile solutions catering to diverse business needs. For businesses that already have an accounting system in place, Hypernix can provide an API, on the other hand, for businesses that do not have an accounting system, Hypernix recommends implementing Oracle NetSuite, a top-tier, cloud-based integrated business software suite. This dual approach ensures that whether a business has pre-existing software or not, Hypernix has a tailored solution to meet their e-invoicing needs.

The future implementation of e-invoicing in Malaysia is a significant step towards digitalization, enhancing transparency and reducing discrepancies in financial transactions. With our expertise and innovative API solution, we are here to support your business in embracing this change, ensuring compliance, and fostering growth in the digital era.