LHDN E-Invoicing | Can you Edit, Reject, Cancel in 72 Hours?

A 72-Hours Grace Period for Adjustments and the Role of Debit Notes and Credit Notes

Malaysia E-Invoicing - Part 2
The Inland Revenue Board of Malaysia (IRBM) is implementing a new e-Invoicing system to streamline and enhance the country’s tax administration. The e-Invoicing system will replace paper invoices with digital invoices that are submitted and validated electronically. This will improve the efficiency of tax collection, reduce fraud and errors, and promote transparency in the tax system.

The e-Invoicing system will be mandatory for businesses with a turnover of RM100 million or more effective August 2024. It will be rolled out to all businesses in July 2025.

This article discusses the amendment of e-invoices in Malaysia. A crucial aspect of this amendment is the 72-hours grace period, which allows businesses to make adjustments to their e-invoices within 72 hours of issuing the original invoice. This grace period can be used to rectify any errors or discrepancies in the invoice. It is important for businesses operating in Malaysia to understand how this grace period works and how to utilize debit notes and credit notes in order to maintain accurate and compliant invoicing practices.

Here is a more detailed explanation of the 72-hours e-Invoicing grace period:

  • Businesses can reject or request cancellation of an e-invoice within 72 hours of issuing the original invoice.
  • After this period, modifications to e-invoices are not allowed.
  • If any changes are required after 72 hours, businesses must issue a new invoice, debit note, credit note, or refund.
  • It is important to maintain clear records of these adjustments and follow the relevant regulations to ensure compliance with the IRB’s guidelines.

Buyer Requests Rejection:

  • Within 72 hours of receiving an e-invoice, the buyer can request its rejection.
  • When buyer initiating rejection request, the seller will receive a notification.
  • The seller must approve the buyer’s request for rejection before the e-invoice can be cancelled.
  • If the seller does not approve the buyer’s request for rejection, the e-invoice will automatically be considered valid after 72 hours.

Seller Perform Cancellation:

  • The seller can also initiate a cancellation of the e-invoice within 72 hours.
  • If the seller cancels the e-invoice, the buyer will no longer be required to pay the amount stated on the invoice.
  • After 72 hours, the e-invoice will automatically be considered valid.
  • Any further amendments to the e-invoice will require a debit or credit note.

SQL Accounting Software:

The E-Invoicing Solution That Will Make Your Life Easier

Get ready for Malaysia’s impending e-Invoicing system by utilizing SQL Accounting Software, the preferred solution for more than 270,000 companies. Our expertise experience in handling complex GST matters ensures seamless automation, meeting regulatory compliance while embracing business flexibility. Now, with the added benefit of cloud accounting, experience real-time collaboration and enhanced accessibility.

Empower your business into the future with SQL Cloud Accounting, the game-changing accounting software that combines the best of both worlds: cloud-based convenience and on-premise customization. Enjoy the flexibility to access your data from anywhere, anytime, on any device, while also benefiting from the robust features and customization options that meet your unique business needs.

SQL Cloud Accounting is the perfect solution for businesses of all sizes, from startups to large enterprises. We offer a wide range of features and customization options to meet your specific needs. Start your free trial today and see the difference that SQL Cloud Accounting can make for your business.

Top 5 Questions Asked About E-Invoicing

  1. Can e-Invoices be cancelled after submit to LHDN?
  2. Yes, e-Invoices can be cancelled within 72 hours of issuance. To cancel an e-inovice. the supplier / customer must submit a cancellation / rejection request  to buyer / seller within 72 hours via MyInvois Portal.
  3. Does e-invoice allowed for editing of information after verified by LHDN?
  4. No, the supplier would need to cancel the e-invoice (Refer Q1) and reissue another new e-invoice.
  5. What details are needed for an e-invoice cancellation/rejection request?
  6. The cancellation / rejection request should specify the reason, which can include incorrect invoice data in any field (e.g., SST number, business registration number, any business-related information, etc).
  7. What if the seller/buyer doesn’t approve my request for amendment/cancellation?
  8. After the 72-hours timeframe, the status of the e-Invoice will automatically change to “Valid”, and any further amendments will require a Debit/Credit Note.
  9. Can I extend the time to adjust an e-invoice?
  10. No, as per IRBM guidelines, there is a 72-hours timeframe for rejection / cancellation of e-invoice. If this time is exceeded, any adjustments will require the issuance of a new invoice, debit note, credit note, or refund.
Share This Page

E-Invoicing Video

Want to know more about SQL Account?

Send Inquiry

Try it for free!

Download brochure

STEP 1: Scan QR Code to pay


STEP 2: Click here to email payment info