Malaysia’s e-invoicing system is rapidly transforming the country’s tax compliance landscape, aiming to modernize reporting, enhance transparency, and reduce administrative inefficiencies. Under this system, businesses are generally required to issue individual e-invoices for each transaction. However, for buyers who do not require individual e-invoices, the consolidated e-invoice offers a streamlined alternative. By aggregating multiple transactions into a single e-invoice submitted to the Inland Revenue Board of Malaysia (IRBM), suppliers can simplify compliance, reduce paperwork, and maintain accurate records. The system also provides a 6-month grace period, allowing businesses time to adjust their invoicing processes ahead of the full mandatory implementation.
Key Summary
Simplifies Compliance
Consolidated e-invoices allow businesses to aggregate multiple receipts into one document, reducing administrative workload.
Submission Timeline
Must be submitted via the MyInvois portal within 7 calendar days after month-end.
Exclusions Apply
High-value transactions (over RM10,000) and industries like automotive, aviation, construction, electricity, and telecom cannot use consolidated e-invoices.
Formatting Options
Businesses can choose to list receipts individually or group sequential numbers for efficiency.
Supports Transition
Provides flexibility during Malaysia’s phased e-invoicing rollout and ensures validated proof of income with IRBM.
What Is A Consolidated e-Invoice?
A consolidated e-invoice is a monthly reporting document that allows suppliers to aggregate multiple low-value or retail-level transactions into one submission, provided buyers did not request individual e-invoices. Instead of issuing an e-invoice for every single transaction, suppliers can combine all receipts, bills, or standard invoices for a month into a single consolidated e-invoice. This approach is particularly useful for businesses that handle a high volume of customers and want to reduce administrative work.
Unlike standard individual e-invoices which are issued per transaction and shared with buyers, the consolidated e-invoice serves primarily as the supplier’s proof of income and tax reporting document. Once validated by the Inland Revenue Board of Malaysia (IRBM), there is no requirement to provide it to buyers, streamlining the compliance process.
A consolidated e-invoice must be submitted via the MyInvois portal within 7 calendar days from the month-end closing date (e.g., January receipts must be consolidated and submitted by 7 February). During this period, businesses can compile all relevant transactions, format the receipt numbers either individually or in sequential groups, and finalize the document for submission through the MyInvois portal.
This method not only ensures compliance with Malaysia’s e-invoicing regulations but also provides operational flexibility, allowing suppliers to focus on core business activities while maintaining accurate and validated financial records.
Read: A Complete Guide To E-Invoice In Malaysia
Why Consolidated e-Invoice Matters in Malaysia
The consolidated e-invoice system plays a crucial role in helping Malaysian businesses manage compliance especially for companies dealing with a high volume of customers who do not require individual e-invoices. By allowing multiple receipts to be grouped into a single monthly e-invoice, businesses can significantly reduce administrative burdens while maintaining focus on their day-to-day operations.
E-invoicing in Malaysia is becoming a mandatory requirement for all businesses, with full implementation scheduled for July 2025. Larger businesses, particularly those with annual turnover exceeding RM100 million, are expected to adopt e-invoicing starting from August 2024, which may also require their suppliers to implement e-invoicing earlier. Staying informed about these updates is essential for suppliers to avoid compliance issues and ensure smooth transactions with larger corporate clients.
The consolidated e-invoice not only streamlines reporting to the Inland Revenue Board of Malaysia (IRBM) but also provides a validated proof of income without the need to issue individual e-invoices to every buyer. This approach is particularly valuable during the transition phase, allowing businesses to adjust to the new system while maintaining operational efficiency.
Industries And Transactions Excluded From Consolidated e-Invoice
While consolidated e-invoices simplify compliance for many businesses, certain industries and transactions are excluded due to the nature or value of their operations. Effective 1 January 2026, consolidated e-invoices cannot be used for:
- Any single transaction exceeding RM10,000 (must issue individual e-invoice).
- Specific industries: electricity, telecom, automotive, aviation, construction, jewelry & luxury goods, gaming, and payments to agents/distributors.
Businesses in these sectors cannot consolidate transactions into a single monthly e-invoice. They must continue issuing individual e-invoices for every transaction to remain compliant with IRBM requirements.
Understanding these exclusions ensures that your business avoids non-compliance penalties while still benefiting from the administrative efficiency offered by consolidated e-invoices for eligible transactions.
Read: Malaysia E-Invoicing System: What Businesses Need to Know
Step-by-Step Guide To Submit Consolidated e-Invoice via MyInvois Portal
Submitting a consolidated e-invoice in Malaysia is straightforward when using the MyInvois portal, provided you follow IRBM’s guidelines. Here’s a step-by-step guide for businesses:
Step 1: New Document
Click the New Document button in the side navigation panel.
Choose Invoice as the document type.
Note: Consolidated e-invoice submission is not allowed for self-billed invoices, except in these cases:
- (a) transactions with individuals not engaged in business,
- (b) interest payments to the public (whether businesses or individuals),
- (c) claims, compensations, or benefit payments from an insurer’s business to individuals not engaged in business.
Select v1.1 as the document version.
Click Start.
Step 2: Add Basic Information
The system will automatically generate the invoice number, date, and time.
Click Continue.
Step 3: Add Buyer and Supplier Details
In the Supplier section, users only need to select an MSIC code and provide a description of their business activity; other fields will be auto-filled.
In the Buyer section, select an ID type, enter the ID number and TIN, then click Validate.
After validation, complete the remaining fields.
Click Continue once all supplier and buyer information is filled in.
Step 4: Line Items
Choose the Currency.
Click Continue, then click Add Line.
For the classification code, select Consolidated e-Invoice.
Fill in the details for Product or Service, Quantity, and Unit Price.
The Total Sales Amount will be auto-calculated.
Scroll down and click Add Tax.
Select the Tax Type.
After entering all details, click Add.
To include another item, click Add and New.
Click Continue once all line item details are entered.
Step 5: Add Additional Information
Review the optional fields (recurring billing details, payment and prepayment information, shipping details), then click Continue.
Step 6: Review and Finalize
Check the information on the summary page.
If everything is correct, click Sign and Submit Document.
Step 7: Document Signing
- Select your ID Type to sign the document.
- Enter your User ID and Password, then click Submit
- A pop-up will appear with a link
- Click the link to view the submission details.
Click on the Internal ID to open the Submission Details page.
Then, click the UUID/Internal ID to access your e-invoice.
Here, you can print or download your e-invoice.
Click Print to view it as shown below.
Formatting Options for Consolidated e-Invoice
When preparing a consolidated e-invoice in Malaysia, businesses can choose a format that best suits their operational needs while ensuring compliance with IRBM requirements. The two main formatting options are:
Option 1: Single Line Summary of All Receipts
All receipts issued to buyers who do not require an individual e-invoice are aggregated into a single line item. This method is simple and ideal for businesses with high-volume, low-value transactions. Example: If 10 receipts were issued during the month, the total amount from all receipts is shown as one line in the consolidated e-invoice.
Option 2: Line Items Representing Sequential Receipt Numbers
Receipts are listed individually or grouped sequentially on separate lines. This format provides a clear audit trail, showing the range of receipt numbers for each group of transactions. Example: Receipts 1001–1005 are grouped on one line, followed by 1006–1010 on the next line. If a buyer requested an individual e-invoice in the middle of the sequence, grouping resumes with the next set of receipts.
Tip: Exclude Buyers Who Requested Individual E-Invoices
Buyers who requested individual e-invoices must not be included in the consolidated e-invoice. Including them may lead to discrepancies during IRBM validation. Choosing the right format whether single line or sequential line items helps businesses streamline reporting while maintaining transparency and compliance with Malaysia’s e-invoicing rules.
Key Compliance Considerations for Businesses
Implementing consolidated e-invoices in Malaysia comes with specific compliance requirements that businesses must carefully follow. Observing these rules ensures smooth validation by IRBM and avoids potential penalties.
1. Validated e-Invoice as Proof of Income
Once submitted and validated through the MyInvois portal, the consolidated e-invoice serves as the official proof of income for suppliers. Unlike standard individual e-invoices, there is no obligation to share the validated consolidated e-invoice with buyers.
2. Exclude Buyers Requesting Individual E-Invoices
Buyers who explicitly request individual e-invoices must not be included in the consolidated submission. Including these buyers could result in validation errors or non-compliance during IRBM audits.
3. Review Internal Invoicing Processes Before January 2026
Effective 1 January 2026, new restrictions limit the use of consolidated e-invoices for certain industries and transactions, including:
- Electricity providers – distribution, supply, or sale of electricity.
- Telecommunication companies – postpaid plans, internet subscriptions, and electronic device sales.
- High-value transactions – any single transaction exceeding RM10,000.
Businesses in affected sectors should audit internal invoicing workflows and ensure compliance before the effective date to avoid penalties.
Benefits of Using Consolidated e-Invoice
Implementing consolidated e-invoices in Malaysia offers multiple advantages for businesses, especially during the transition to mandatory e-invoicing. Here’s how businesses can benefit:
1. Streamlines Reporting and Reduces Administrative Burden
By consolidating receipts, businesses reduce manual submissions, free up accounting resources, and maintain an IRBM-validated monthly record — without needing to overwhelm buyers with unnecessary e-invoices. This is particularly useful for companies handling high volumes of low-value transactions, allowing accounting teams to focus on core operations rather than repetitive invoicing tasks.
2. Ensures Compliance Without Overloading Accounting Systems
The consolidated e-invoice system helps businesses meet IRBM requirements efficiently. Even with multiple transactions per month, accounting systems are not overwhelmed, and validation through the MyInvois portal is simplified, minimizing the risk of errors or delayed submissions.
3. Supports Smoother Transition During Mandatory E-Invoicing Rollout
During the 6-month grace period, businesses can adapt their workflows gradually and test consolidated e-invoicing without immediately converting every transaction into an individual e-invoice. This phased approach allows suppliers to align their invoicing processes with IRBM’s regulations while maintaining smooth operational continuity.
Conclusion
Consolidated e-invoices give Malaysian businesses a temporary compliance bridge: reducing admin workload now, while preparing for stricter industry exclusions from January 2026. Reviewing internal processes early ensures a smooth transition into Malaysia’s mandatory e-invoicing regime. By consolidating multiple receipts into a single validated e-invoice, companies can reduce administrative burden, ensure compliance with IRBM regulations, and maintain accurate records without overloading accounting systems. As Malaysia moves through the phased e-invoicing rollout and sector-specific restrictions take effect, businesses are encouraged to review internal processes, leverage the 6-month grace period, and stay updated on regulatory changes to ensure a smooth and compliant transition into the digital tax ecosystem.
How FastLane Group Can Help
FastLane Group offers comprehensive support to Malaysian businesses navigating the e-invoicing transition. Their services include assessing current invoicing systems, implementing tailored e-invoicing solutions, and providing staff training on compliance requirements. Additionally, FastLane Group assists in upgrading accounting software to support e-invoicing, ensuring accurate and timely reporting. With their expertise, businesses can streamline operations, reduce errors, and stay ahead as Malaysia transitions to full digital tax compliance. Contact us today for a free consultation!
