How to Create an Invoice in Malaysia (2025)
A complete guide to creating professional, legally compliant invoices — including mandatory fields, SST rules, MyInvois e-invoice requirements, and best practices.
Updated for 2025: This guide covers the latest Malaysian invoicing requirements, including the MyInvois e-invoice mandate phased rollout starting from 2024.
What is an invoice?
An invoice is a commercial document issued by a seller to a buyer, requesting payment for goods or services delivered. In Malaysia, invoices serve as the primary documentation for business transactions, tax filings, and e-invoice compliance under LHDN (Lembaga Hasil Dalam Negeri) requirements.
Unlike a receipt (which confirms payment has been made), an invoice is a request for payment. It establishes the amount owed and the payment terms agreed upon.
Required fields on a Malaysian invoice
While there is no single law that mandates all invoice fields for general commercial invoices, the following fields are considered best practice and are required for SST-registered businesses:
Invoice number
A unique sequential number (e.g. INV-2025-001). Required for record-keeping and tax audits.
Invoice date
The date the invoice was issued. This determines the payment due date.
Seller information
Business name, address, and contact details. For SST-registered businesses, include your SST registration number.
Buyer information
Client name and address. For MyInvois e-invoices, the buyer's TIN (Tax Identification Number) is also required.
Description of goods/services
A clear description of what was delivered, along with quantity and unit price.
Subtotal, tax, and total
Break down the subtotal (before tax), any SST or other taxes applied, and the final total amount payable.
Currency
State the invoice currency. For foreign currency invoices, include the exchange rate to MYR.
Payment terms
Due date and payment methods accepted (e.g. bank transfer, DuitNow).
Step-by-step: how to create an invoice
Add your business details
Start with your business name, address, phone number, and email. If you are SST-registered, include your SST registration number (e.g. W10-xxxx-xxxxxxxx for Service Tax). This information appears at the top of the invoice.
Add your client's details
Include the client's company name and billing address. For MyInvois submissions, you also need their TIN number. If you don't have their TIN, you can use their Business Registration Number (BRN) instead.
Assign a unique invoice number
Use a consistent numbering format like INV-2025-001 or 2025/INV/001. Your invoice numbers should be sequential and never reused — LHDN may audit your invoice sequence during tax reviews.
Set the invoice date and due date
The issue date triggers the payment clock. Common Malaysian payment terms are Net 30 (payment due 30 days after invoice date). State the exact due date to avoid ambiguity.
List your goods or services
Add each item with a clear description, quantity, unit price, and line total. Be specific — vague descriptions like "consulting services" are a red flag during audits. Write "IT consulting services for website redesign project — March 2025" instead.
Apply SST if applicable
If you are SST-registered, add Service Tax (8%) or Sales Tax (5%/10%) as a separate line item. Show the taxable amount, tax rate, and tax amount separately. Not all services are taxable — check the SST taxable services list on the RMCD website.
Add payment instructions
Specify your bank account details (bank name, account number, account name). Adding a DuitNow QR code dramatically speeds up payment — Malaysian clients can scan and pay instantly. InvoiceLah generates the DuitNow QR automatically.
Add notes and payment terms
Include a professional thank-you note and your payment terms. State your late payment policy clearly (e.g. 1.5% per month on overdue amounts). This protects you legally and sets professional expectations.
MyInvois e-invoice requirements (2025)
Malaysia's MyInvois system requires businesses above certain revenue thresholds to submit e-invoices through LHDN's portal. The rollout is phased:
| Annual turnover | Mandatory from |
|---|---|
| RM 100 million and above | August 2024 |
| RM 25 million to RM 100 million | January 2025 |
| All other businesses | July 2025 |
For MyInvois, each invoice must include both the seller's and buyer's TIN, MSIC code, and classification code for each line item. InvoiceLah supports MyInvois e-invoice submission on Pro plans.
Common invoicing mistakes to avoid
Using the same invoice number twice — always use sequential, non-reusable numbering
Vague service descriptions — be specific to avoid disputes and audit issues
Forgetting to include SST when you are a registered SST business
Not specifying the due date — "net 30" is ambiguous; always state the exact date
Sending invoices as editable Word documents — always send as PDF to prevent alteration
Not keeping copies — store all invoices for at least 7 years for tax purposes
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