Malaysia e-Invoicing Guide For F&B Industry

Malaysia’s mandatory e-Invoicing rollout marks a significant shift for the F&B sector, where businesses typically handle high-volume daily transactions while operating on tight margins. From restaurants and cafés to food stalls and online sellers, issuing invoices correctly is now an essential part of regulatory compliance. E-Invoicing changes how sales and certain adjustments are recorded, validated, and reported under IRBM requirements.

With frequent cash payments, platform-based orders, and advance deposits, F&B operators face added operational complexity if systems and workflows are not properly structured. This guide is designed to help restaurant owners, café operators, stallholders, and digital food businesses understand how e-Invoicing applies to their operations and what practical steps they can take to stay compliant while keeping day-to-day operations running smoothly.

What Is E-Invoicing in Malaysia?

E-invoicing in Malaysia refers to the digital issuance, validation, and submission of invoices through the Inland Revenue Board of Malaysia (IRBM)’s MyInvois system. Instead of relying only on internal invoices/receipts, businesses submit invoice data electronically to IRBM in a prescribed format for validation, and the validated record becomes part of the official trail. Once validated, the e-invoice becomes an official tax record for both income and expense reporting.

The e-invoicing process follows a structured flow. First, an invoice is generated through the MyInvois Portal, mobile app, or an integrated accounting or POS system. The invoice data is then submitted to IRBM for validation. After approval, the validated e-invoice is issued to the customer and recorded in IRBM’s system. This process applies to sales, deposits, refunds, and certain expense transactions, ensuring greater transparency and consistency in tax reporting.

Malaysia’s e-invoicing implementation is rolled out in phases based on business revenue levels, with larger businesses required to comply earlier and smaller operators following later. Compliance is implemented in phases based on annual turnover, with earlier adoption for larger businesses and later phases for smaller operators. Always confirm the latest IRBM timeline before locking internal SOP deadlines. While exact dates differ by revenue band, all F&B operators should plan ahead, as even small or cash-based businesses will eventually fall within the mandatory scope.

Read: Malaysia E-Invoicing System: What Businesses Need to Know

Which F&B Businesses Are Required to Comply?

Malaysia’s e-invoicing requirements apply broadly across the food and beverage sector. Compliance is determined by the nature of your business activities, not by size, payment method, or whether you operate online or offline.

1. Restaurants

All restaurants must comply, including dine-in outlets, takeaway-only kitchens, and multi-outlet chains. This applies to both independent operators and franchised brands, regardless of whether payments are made by cash, card, or digital wallets.

2. Cafes, bakeries, and dessert shops

Cafes, coffee shops, bakeries, and dessert businesses are also required to issue e-invoices for taxable sales and expenses. This includes neighbourhood cafes as well as boutique and specialty concepts with lower daily transaction values.

3. Food stalls, food trucks, and night market vendors

Roadside stalls, food trucks, and night market vendors are not excluded from e-invoicing obligations. Even businesses with simple setups and high cash volumes must comply once their implementation phase begins.

4. Catering businesses and home-based food sellers

Catering companies, event-based food providers, and home-based food sellers are required to issue e-invoices for deposits, final billings, and related expenses. This includes operators running their businesses from residential kitchens or temporary venues.

5. Online food businesses and delivery-platform sellers

Food businesses selling through websites, social media platforms, or delivery apps such as GrabFood and Foodpanda fall within the e-invoicing scope. Responsibility for issuing e-invoices depends on the payment and billing structure, but compliance remains mandatory.

6. Small or cash-based businesses are not exempt

A common misconception is that small, cash-based, or informal F&B businesses are exempt from e-invoicing. In practice, IRBM’s e-invoicing framework applies to all F&B operators once their phased implementation date is reached, regardless of business size or transaction method.

Common F&B Transactions That Require E-Invoices

F&B businesses handle a wide range of daily transactions, many of which fall within Malaysia’s mandatory e-invoicing scope. Understanding which income and expense transactions require e-invoices is essential for accurate reporting and ongoing compliance.

1. Income Transactions

Sale of food and beverages
Every sale of food and drinks, whether for dine-in, takeaway, or delivery, is considered taxable income. Once payment is received, an e-invoice must be issued in accordance with IRBM requirements.

Catering fees and pre-order deposits
For catering services and pre-orders, e-invoices are required when deposits are collected and again when the final amount is billed. This ensures that income is properly recorded at each stage of the transaction.

Delivery charges billed to customers
If delivery fees are charged separately from food items, these charges must also be reflected in an e-invoice as part of the total taxable amount.

Platform commissions or service fees
Income received through food delivery platforms or online marketplaces, including commissions or service fees charged to customers, may require e-invoicing depending on the contractual and billing structure.

2. Expense Transactions

Ingredient and supplier purchases
Purchases of raw ingredients, beverages, and other supplies from vendors require valid e-invoices to support expense claims and tax records.

Shop or kitchen rental
Monthly rental payments for shops, commercial kitchens, or shared spaces fall under expense transactions that should be supported by e-invoices.

Utilities, equipment, and packaging
Costs such as electricity, water, gas, kitchen equipment, and food packaging materials must be backed by proper e-invoices for accurate expense tracking.

POS systems, ordering platforms, and software subscriptions
Expenses related to POS systems, online ordering platforms, and software subscriptions used in daily operations are also subject to e-invoicing requirements.

Practical E-Invoicing Scenarios for F&B Operators

F&B businesses deal with multiple sales channels and payment flows every day. Understanding how e-invoicing applies to each scenario helps reduce errors and ensures compliance with IRBM requirements.

Walk-In and Dine-In Sales

For walk-in and dine-in customers, an e-invoice is required once payment is received. This applies to cash, card, and e-wallet payments.

High-volume outlets such as kopitiams and cafes may use consolidated e-invoicing. IRBM allows, subject to conditions,  a monthly consolidated e-invoice for cash sales, provided it is submitted within the timeline prescribed by IRBM. This helps reduce administrative workload while remaining compliant.

If your POS system is integrated with MyInvois, e-invoices can be generated automatically. Smaller operators can issue invoices using the MyInvois Portal or mobile app.

Takeaway and Online Orders

Takeaway orders placed in-store or online follow the same principle. An e-invoice must be issued when payment is confirmed.

For online orders through your own website or social media, responsibility usually rests with the business receiving the payment. This includes pre-paid takeaway orders and self-pickup arrangements. Clear internal processes are important to ensure staff know when payment is considered complete and when the e-invoice should be issued.

Platform-Based Payments (GrabFood, Foodpanda, etc.)

For food delivery platforms, e-invoicing responsibility depends on the payment and billing structure.

If the platform collects payment on your behalf and remits net proceeds after deducting commissions, the income you receive must be supported by an e-invoice. Platform commission and service fees should also be backed by valid e-invoices for expense recording. Always review platform agreements carefully. This helps determine whether the platform or the F&B operator is responsible for issuing the e-invoice to the end customer.

Catering Deposits and Final Billing

Catering businesses often collect deposits before an event. An e-invoice is required at the time the deposit is received.

Once the event is completed, a final e-invoice must be issued for the remaining balance. Both invoices form part of your taxable income records. Proper tracking of deposits and final billing reduces reconciliation issues and supports accurate tax reporting.

Refunds, Cancellations, and Credit Notes

When orders are cancelled or refunds are issued, a credit note e-invoice must be submitted through the MyInvois system.

This applies to dine-in refunds, cancelled online orders, and catering cancellations. Credit notes ensure your revenue records remain accurate and aligned with IRBM requirements. Staff should be trained to recognise refund scenarios and issue credit note e-invoices promptly to avoid compliance gaps.

Read: How To Submit Consolidated e-Invoice Via MyInvois Portal In Malaysia 

Simplified E-Invoicing Options for Small F&B Vendors

Not all F&B businesses operate with full POS systems or automated accounting software. For food stalls, micro-operators, and small cafés, IRBM provides simplified e-invoicing options to support compliance without heavy upfront costs.

Using the MyInvois Portal for Manual Submissions

The MyInvois Portal allows businesses to create and submit e-invoices manually through a web browser. This option is suitable for vendors with low transaction volumes or irregular sales patterns.

Operators can log in, key in invoice details, and submit them directly to IRBM for validation. The portal supports basic invoicing needs, including sales, credit notes, and expense records. While cost-effective, manual submissions require discipline and accurate data entry to avoid errors or late filings.

MyInvois Mobile App for Stalls and Micro-Operators

For roadside stalls, food trucks, and weekend market vendors, the MyInvois mobile app offers a practical solution.

The app allows e-invoices to be issued directly from a smartphone at the point of sale. This is especially useful for cash-based businesses without computers or digital registers. Small vendors can issue individual e-invoices or manage simplified records while remaining compliant with IRBM requirements.

When Manual Submission May Become Inefficient

Manual e-invoicing works best for low-volume businesses. As daily transactions increase, manual entry can quickly become time-consuming.

Businesses with frequent walk-in customers, multiple payment methods, or online orders may struggle to keep up with manual submissions. Delays and data entry errors can also increase compliance risk. At this stage, upgrading to a POS system or integrated e-invoicing solution may be more efficient.

Key Limitations to Be Aware Of

Simplified e-invoicing options come with certain limitations. Manual and mobile submissions do not offer automation, real-time integration, or advanced reporting features.

There is also a higher reliance on staff accuracy and consistency. Missing invoices, late submissions, or incorrect details can lead to compliance issues.

Monthly Consolidated E-Invoices for Cash Sales

For many F&B businesses, especially those handling large volumes of small cash transactions, issuing individual e-invoices for every sale can be impractical. To address this, IRBM allows eligible businesses to use monthly consolidated e-invoices.

What Consolidated E-Invoicing Means

Consolidated e-invoicing allows an F&B business to combine multiple cash sales into a single summary e-invoice. Instead of issuing an e-invoice for each individual transaction, total daily or monthly cash sales are aggregated and reported as one consolidated record. This approach is designed to reduce administrative workload while maintaining compliance with e-invoicing requirements.

Eligibility for F&B Businesses with Frequent Low-Value Transactions

Monthly consolidated e-invoices are suitable for businesses with high transaction volume and low average ticket size. Common examples include food stalls, kopitiams, small cafés, and takeaway counters with frequent walk-in customers. This option generally applies to cash sales where customer details are not captured. Businesses must still maintain internal sales records to support the consolidated figures.

Submission Deadline Within 7 Days After Month-End

Consolidated e-invoices must be submitted to IRBM within 7 days after the end of each month. Missing this deadline may result in non-compliance, even if the sales records are complete. F&B operators should set clear internal processes to track monthly totals and ensure timely submission through the MyInvois system.

Benefits and Compliance Risks 

The main benefit of consolidated e-invoicing is reduced administrative effort. It allows small and cash-heavy F&B businesses to stay compliant without disrupting daily operations.

However, failing to submit the consolidated e-invoice on time carries compliance risks. Late or missing submissions can lead to penalties and increased audit scrutiny. To avoid issues, businesses should regularly reconcile cash sales and assign clear responsibility for monthly e-invoice submissions.

Key Challenges F&B Businesses Face with E-Invoicing

While e-invoicing improves long-term compliance and transparency, the transition can be challenging for many F&B operators. Understanding these common issues helps businesses prepare and reduce disruption.

POS System Compatibility and Integration Gaps

Many existing F&B POS systems were not built to integrate directly with IRBM’s MyInvois platform. Businesses may face limitations in system compatibility, requiring software upgrades or third-party integration solutions.

Without proper integration, invoice data may need to be re-entered manually, increasing the risk of errors and delays. This is a common concern for multi-outlet restaurants and growing café chains.

Staff Training and Operational Disruption

E-invoicing changes front-of-house and back-office workflows. Cashiers, supervisors, and managers must understand when to issue e-invoices, how to handle deposits, and how to process credit notes.

Training takes time and may temporarily slow service, especially during peak hours. Without clear SOPs, mistakes can occur, affecting both customer experience and compliance.

Manual Workload for Small Vendors

For small F&B vendors using manual submission or the MyInvois mobile app, the administrative workload can be significant. Daily sales entry, reconciliation, and month-end submissions require consistent effort. As transaction volumes grow, manual processes may no longer be practical. This often pushes small vendors to consider system upgrades earlier than planned.

Cash Flow Pressure from System Upgrades and Delayed Payouts

System upgrades, POS enhancements, and staff training create upfront costs. At the same time, platform-based sales may involve delayed payouts from delivery partners. This combination can strain cash flow, particularly for businesses operating on thin margins. Careful planning and access to short-term financing can help manage this transition more smoothly.

Step-by-Step: How F&B Businesses Can Prepare for E-Invoicing

Preparing early helps F&B businesses reduce disruption and stay compliant when e-invoicing becomes mandatory. The steps below provide a practical roadmap for a smooth transition.

1. Review Existing POS and Accounting Systems

Start by reviewing your current POS, online ordering platforms, and accounting software. Check whether these systems can support e-invoicing or integrate with IRBM’s MyInvois platform. Identify gaps such as manual data entry, limited reporting, or lack of system compatibility. This assessment helps determine whether upgrades or replacements are needed.

2. Decide Between MyInvois, Third-Party Providers, or API Integration

Next, choose the most suitable e-invoicing method for your business size and transaction volume. Small vendors may rely on the MyInvois Portal or mobile app. Growing cafés and restaurants often benefit from third-party e-invoicing providers. Larger F&B operators with complex workflows may require direct API integration for automation and scalability. Selecting the right option early avoids rushed decisions later.

3. Establish SOPs for Invoice Issuance and Credit Notes

Clear standard operating procedures are essential. Define when e-invoices should be issued for walk-in sales, online orders, deposits, and delivery charges. Set guidelines for handling refunds, cancellations, and credit notes. Well-documented SOPs reduce errors and ensure consistent compliance across outlets and shifts.

4. Train Front-Line Staff and Managers

Training should cover both operational and compliance aspects. Cashiers and service staff need to know when to issue e-invoices, while managers must understand exception handling and month-end checks. Regular refreshers help reinforce good practices and reduce mistakes during busy service periods.

5. Budget for Compliance and Short-Term Transition Costs

Finally, plan for short-term costs linked to e-invoicing adoption. These may include system upgrades, subscription fees, staff training, and temporary productivity slowdowns. Setting a realistic budget helps protect cash flow and ensures your business can transition smoothly without affecting daily operations.

Government Support and Incentives for Digitalisation

To ease the transition to mandatory e-invoicing, the Malaysian government has introduced several digitalisation support measures under Budget 2025. These initiatives are designed to help SMEs, including F&B businesses, manage compliance costs and invest in digital systems more sustainably.

Overview of SME Digitalisation Support Measures

Budget 2025 continues to prioritise SME digital adoption as part of Malaysia’s tax and business modernisation agenda. Support is targeted at businesses upgrading systems for compliance, automation, and operational efficiency.

For F&B operators, this means financial assistance is available not only for e-invoicing tools, but also for related digital upgrades such as POS systems, accounting software, and workflow automation.

Microloans, Grants, and Automation Funding

Several funding channels are available at a high level:

• Microloans offered through agencies such as TEKUN and BSN to support small and micro businesses
  
• Digital and automation grants to offset system upgrade and integration costs
  
• Financing support via Bank Negara Malaysia to encourage compliance and productivity improvements
  
• Government-backed loan guarantees through SJPP to improve access to credit

These options help F&B businesses spread the cost of compliance instead of bearing all expenses upfront.

Tax Deduction for Eligible Compliance and Consultation Costs

From YA 2024 to YA 2027, eligible businesses can claim tax deductions of up to RM50,000 per year for ESG-related compliance expenses. This includes professional fees for e-invoicing consultation, system implementation, and process alignment.

For F&B operators, this reduces the effective cost of engaging advisors, accountants, or system specialists to support e-invoicing readiness.

How These Incentives Can Reduce E-Invoicing Adoption Costs

When combined, grants, financing options, and tax deductions can significantly lower the financial impact of e-invoicing adoption. Businesses can use incentives to fund system upgrades, staff training, and short-term operational adjustments.

With proper planning, F&B businesses can leverage government support to stay compliant while preserving cash flow and maintaining day-to-day operations.

Managing Cash Flow During the Transition

While e-invoicing strengthens long-term compliance, the initial transition can place pressure on cash flow. F&B businesses should plan ahead to manage short-term financial strain during system changes and process adjustments.

E-Invoicing Can Strain Working Capital Initially

E-invoicing often requires upfront spending before any operational benefits are realised. Businesses may need to upgrade POS systems, subscribe to e-invoicing software, or engage consultants to align processes with IRBM requirements.

At the same time, staff training and testing periods can temporarily slow operations. For F&B businesses with tight margins, these factors can reduce available working capital in the short term.

Common F&B Cost Pressure Points

F&B operators already face regular cash outflows that leave little room for unexpected expenses.

Key pressure points include:

• Monthly shop rent and service charges
  
• Daily ingredient and inventory purchases
  
• Payroll, EPF, SOCSO, and staff benefits
  
• Utilities, equipment maintenance, and packaging

When e-invoicing costs are added to these ongoing obligations, cash flow can become stretched if not managed carefully.

Importance of Short-Term Cash Flow Planning

Short-term cash flow planning is critical during the transition period. Businesses should forecast expenses related to system upgrades, training, and compliance administration over the next few months.

Maintaining a cash buffer helps ensure rent, supplier payments, and payroll are met on time while systems stabilise. With clear planning, F&B businesses can adopt e-invoicing without disrupting daily operations or service quality.

Read: Xero Malaysia Guide to e-Invoicing and Peppol Compliance

How F&B Businesses Can Prepare

Proper preparation allows F&B businesses to adopt e-invoicing smoothly while minimising operational disruption. The steps below focus on practical actions that support both compliance and day-to-day operations.

Check POS and Ordering System Compatibility

Start by reviewing whether your existing POS or online ordering system supports e-invoicing. Some systems can already generate structured invoice data or integrate with IRBM’s API. If integration is possible, confirm the scope of work, timelines, and costs involved. Early system checks help prevent last-minute issues closer to the compliance deadline.

Explore Suitable E-Invoicing Solutions

If your current system does not support e-invoicing, consider alternative options. Smaller F&B businesses may use the MyInvois Portal or mobile app for direct submission. Growing cafés and restaurants can explore IRBM-approved e-invoicing providers that offer better automation and reporting. Choosing the right solution depends on transaction volume and operational complexity.

Set Internal SOPs for E-Invoices and Credit Notes

Clear SOPs are essential for consistent compliance. Define when e-invoices should be issued for walk-in sales, online orders, deposits, and delivery charges. Document the process for handling cancellations, refunds, and credit note issuance. Well-defined procedures reduce errors and staff confusion.

Train Staff and Key Managers

Training should cover practical scenarios faced at the counter and back office. Front-line staff need to know when to issue e-invoices, while managers should oversee exceptions and reconciliation. Regular guidance ensures the team is confident and compliant during busy service hours.

Plan for Short-Term Costs and Transition Effort

Finally, budget for short-term costs linked to e-invoicing adoption. These may include system upgrades, staff onboarding, and additional administrative work. Planning ahead helps protect cash flow and allows your business to focus on service quality while meeting regulatory requirements.

Conclusion

E-invoicing applies to all F&B businesses in Malaysia, not just large restaurant chains. From small food stalls to established cafés and catering operators, early preparation is key to reducing operational disruption and financial pressure during the transition. By reviewing systems early, training staff, and planning cash flow carefully, compliance becomes far more manageable. With the right system setup, SOPs, and reconciliation discipline, F&B operators can meet e-Invoicing requirements without slowing service. The goal is simple: clean records, clean month-end, minimal counter friction.

How FastLane Group Can Help

FastLane Group supports F&B businesses in Malaysia through every stage of e-invoicing preparation and compliance. Our team helps you review your existing POS, ordering, and accounting workflows to assess readiness for IRBM’s e-invoicing requirements.

We assist with MyInvois onboarding, process setup, and internal SOP development to ensure invoices and credit notes are handled correctly. FastLane also supports bookkeeping alignment and ongoing compliance administration, helping you stay organised. Contact us today for a consultation!

FAQs: E-Invoicing for F&B Businesses

1. Do small food stalls need to issue e-invoices?

Yes. E-invoicing applies to all F&B businesses, regardless of size or whether transactions are mainly cash-based. Small vendors can use the MyInvois Portal or mobile app to comply.

2. Can cash sales be consolidated?

Yes. IRBM allows monthly consolidated e-invoices for high-volume cash sales, such as those from food stalls or cafés. The consolidated invoice must be submitted within seven days after the month-end.

3. What happens if an invoice is issued incorrectly?

If an error occurs, a credit note e-invoice must be issued to cancel or adjust the original invoice. Clear SOPs help staff manage these situations correctly.

4. Is API integration mandatory?

No. API integration is optional and usually suitable for larger F&B businesses with high transaction volumes. Smaller operators can use the MyInvois Portal or approved third-party providers instead.

5. Are there penalties for late or missing submissions?

Yes. Failure to issue or submit e-invoices on time may result in penalties under Malaysian tax regulations. Timely submission and proper record-keeping are essential to remain compliant.