Step-by-Step Guide on Xero Registration & Sending e-Invoices

Electronic invoicing (e-Invoicing) is transforming the way businesses manage tax compliance and digital transactions worldwide. For companies operating in Malaysia, the Inland Revenue Board of Malaysia (IRBM) has rolled out a phased e-Invoicing mandate, requiring businesses to register and issue invoices through the government’s MyInvois Portal.

If you’re a Xero user, this process becomes much simpler. Xero integrates directly with Invoici, its e-Invoicing solution, allowing you to seamlessly register, connect with the MyInvois portal, and send compliant e-Invoices directly to IRBM.

This guide will walk you step by step through the process of registering for e-Invoicing in Xero, highlight key compliance requirements, and share practical tips to make the transition smooth.

Why e-Invoicing Matters

1. Compliance

Malaysia’s Inland Revenue Board (IRBM) has updated the e-invoicing compliance timeline, introducing new thresholds and phased implementation dates. It’s crucial for businesses to stay informed to ensure timely compliance.

Updated Compliance Timeline

• 1 August 2024: Mandatory for taxpayers with an annual turnover exceeding RM100 million.
• 1 January 2025: Mandatory for taxpayers with an annual turnover between RM25 million and RM100 million.
• 1 July 2025: Mandatory for taxpayers with an annual turnover between RM5 million and RM25 million.
• 1 January 2026: Mandatory for taxpayers with an annual turnover between RM1 million and RM5 million.
• 1 July 2026: Mandatory for taxpayers with an annual turnover up to RM1 million.

Exemptions and Grace Periods

• Exemptions: Exempt if annual turnover is below RM500,000 based on FY2022 and the taxpayer is not part of a related group exceeding the threshold. If turnover later exceeds RM500,000, obligations start on 1 January of the second year after that financial year.
  
• Grace Periods: A six-month relaxation period applies after each phase:
  • Phase 1: until 31 January 2025
  • Phase 2: until 30 June 2025
  • Phase 3: until 31 December 2025
  • Phase 4: until 30 June 2026
  • Phase 5: until 31 December 2026

From 1 January 2026, any single transaction above RM10,000 must be issued as an individual e-invoice (not consolidated).

Important Considerations

• Threshold Determination: Phase assignment is based on FY2022 annual turnover (IRBM baseline).
  
• Continued Compliance: Once onboarded in a phase, businesses should maintain e-invoicing unless IRBM issues updated guidance that changes their status.

This phased approach ensures that larger companies adapt first, followed by smaller enterprises. By registering early, you avoid last-minute system errors or compliance penalties.

Note that thresholds and phases may shift, and businesses need to check the latest version of IRBM’s guidelines. See IRBM’s official guidelines here.

2. Efficiency

Traditional invoicing often involves manual entry, paper records, and back-and-forth email communication. This process can be time-consuming and prone to human errors, such as incorrect amounts or mismatched tax numbers.

With e-Invoicing:

• Invoices are created, validated, and submitted electronically.
• Errors are flagged instantly before submission.
• Payments can be processed faster since customers receive invoices in real time.

Example:
Imagine a retailer generating 500 invoices per month. With manual processes, correcting just 5% of errors could mean 25 invoices to reprocess monthly. With e-Invoicing via Xero, those errors are minimized because the system validates details before sending to IRBM.

Also Read: How to Import Bills into Xero

3. Transparency

One of the biggest advantages of e-Invoicing is the improved visibility of business transactions. Since all invoices are validated by IRBM in real time, there is less room for discrepancies or under-reporting.

Benefits include:

• Easier audits since invoice trails are automatically logged.
• Clearer financial records for management and investors.
• Reduced risk of disputes between suppliers and customers.

Example:
If a supplier sends an e-Invoice through Xero, both the supplier and customer can access the validated document directly. This eliminates confusion over whether an invoice was received, processed, or altered.

4. Global Alignment

Malaysia is not alone in adopting e-Invoicing. Countries worldwide are moving toward standardized digital invoicing to improve tax compliance and streamline cross-border business operations.

• Singapore uses the Peppol network for e-Invoicing.
• Australia has also rolled out its Business e-Invoicing Right (BER) initiative.
• European Union countries mandate e-Invoicing for public sector contracts.

For businesses operating regionally or globally, adopting e-Invoicing early in Malaysia positions you for seamless alignment with international best practices.

Example:
If your Malaysian company works with a Singaporean client, using e-Invoicing ensures that transactions comply with both countries’ digital tax requirements, reducing administrative friction.

What You Need Before Registration

Before you can register your organisation to send e-Invoices through Xero and Invoici, there are a few important prerequisites. Think of these as your “checklist” to ensure the registration process goes smoothly.

Also Read: How To Use Bank Rules In Xero 

1. Business Registration Number (BRN)

A Business Registration Number (BRN) is a unique identifier for your company, issued when you register your business with the Companies Commission of Malaysia (SSM) or the relevant authority.

• If you’re a private limited company (Sdn. Bhd.), you will have a company registration number from SSM.
  
• If you’re a sole proprietor or partnership, your BRN will also come from SSM registration records.

Why it’s important: The BRN links your business identity with the government’s MyInvois Portal. Without it, you won’t be able to complete e-Invoicing registration.

2. Tax Identification Number (TIN)

The Tax Identification Number (TIN) is issued by the IRBM and is mandatory for all taxpayers in Malaysia.

• Individuals and companies receive a TIN once they register for tax.
  
• From 2022 onwards, Malaysia made it compulsory for all taxpayers to have a TIN for better monitoring of compliance (see official IRBM notice).

Example:

• A company named ABC Tech Sdn. Bhd. may have a TIN such as C1234567890.
  
• This number must be entered consistently across both Xero and MyInvois during the registration process.

3. MyTax Credentials for the MyInvois Portal

The MyInvois Portal is part of Malaysia’s MyTax system, which allows taxpayers to file, validate, and manage e-Invoices.

To register:

• You’ll need your MyTax login ID and password.
  
• This is usually the same account you use for submitting income tax filings or checking company tax details online.

Tip: Make sure your MyTax account is active and up to date. If your company’s authorised representative has changed, update those details before starting the e-Invoicing registration process.

Also Read: How To Enter Conversion Balances in Xero

4. An Active Xero Organisation

Finally, you’ll need an active Xero subscription and an organisation set up in Xero.

• This ensures that once you connect with Invoici, Xero can automatically create the required tracking categories for compliance (for example, MyInvois Classification).
  
• Without an active Xero organisation, you won’t be able to sync or send e-Invoices directly.

Example:
If you already use Xero for bookkeeping, invoicing, or payroll, your organisation is already set up. All you need is to connect it to Invoici to start sending e-Invoices to IRBM.

Phased Rollout of e-Invoicing in Malaysia

Malaysia is rolling out e-Invoicing in stages, based on business revenue thresholds. Larger businesses are required to comply earlier, while smaller businesses have more time to prepare.

Why the Phased Approach Matters

The government recognises that businesses vary in size and readiness. Larger corporations often have resources and established accounting systems, making it easier for them to adapt quickly. Smaller businesses, on the other hand, may need more time to transition.

Example:

• A tech company with RM 30 million turnover must start e-Invoicing by 1 January 2025.
  
• A small consulting firm earning RM 2 million annually won’t need to comply until 1 January 2026, giving them extra preparation time.

Pro Tip: Register Early

Even if your business falls into a later compliance phase, registering early has key advantages:

• Test the system: Work out any technical issues in advance.
• Train your staff: Familiarize your team with new processes before deadlines hit.
• Avoid last-minute rush: Many companies will register closer to the deadline, which may cause delays or support bottlenecks.

By being proactive, you not only ensure compliance but also gain the efficiency benefits of e-Invoicing sooner.

Also Read: How To Read A Balance Sheets In Xero

Step 1: Register in the MyInvois Portal

Before Xero can send e-Invoices on your behalf, you must first register your business in Malaysia’s MyInvois Portal, which is managed by the Inland Revenue Board of Malaysia (IRBM).

Here’s how to do it:

1. Visit the MyTax Portal.
   This is Malaysia’s official online tax platform where businesses manage compliance.
   
2. Log in with your MyTax credentials.
   Use the account details associated with your company. If you don’t have one, your business must first be registered with IRBM.
   
3. Navigate to the “MyInvois” section.
   You’ll find this option in the header menu once logged in.
   
4. Complete the MyInvois setup (if not already done).
   Some businesses may need to fill in preliminary details before moving forward.
   
5. On the homepage, click “Manage Taxpayer Profile.”
   This section allows you to add intermediaries, such as Xero, to act on your behalf.
   
6. Add Xero as an Intermediary.
   In the “Representatives” section, click Add Intermediary and enter the following official details exactly as shown below:
   
   • Name: XERO SOFTWARE (MALAYSIA) SDN. BHD.
   • TIN: C59738971030
   • BRN: 202401051638

Make sure the details are entered exactly as above. Any mismatch will cause validation errors during e-invoice submission.

7. Update settings to authorize Xero.
   By doing this, you’re giving Xero the authority to send validated invoices directly to IRBM through the MyInvois system.

Example:
If ABC Trading Sdn. Bhd. adds Xero as its intermediary, all future e-Invoices sent through Xero will automatically be validated in the MyInvois system without ABC needing to log in manually each time.

Step 2: Register in Xero with Invoici

Once you’ve registered in the MyInvois portal, the next step is to connect your Xero organisation with Invoici, Xero’s e-Invoicing solution.

Here’s the process:

1. Go to Invoici.
   
2. Click “Sign in with Xero.”
   Use your Xero login credentials.
   
3. Add your Xero organisation.
   • Click Add Xero Organisation.
   • Select the specific business entity you want to connect.
     
4. Grant permission.
   Click Allow Access to enable Invoici to integrate with your Xero account.
   
5. Open Business.
   Once connected, select your business profile.
   
6. Register for e-Invoicing.
   Click Register for e-Invoicing and confirm you’re authorised to act for your company.
   
7. Select your compliance phase (optional).
   If you know which rollout phase applies to your business (based on revenue), select it now. Otherwise, you can skip this.
   
8. Upload a Taxpayer QR Code (if required).
   
   • You can generate this QR code from the MyInvois Portal.
   • If you don’t have it, you can skip the upload and complete registration manually.
     
9. Verify your business details.
   Ensure your BRN, TIN, and company name match exactly with what you entered in MyInvois.
   
10. Select your MSIC code (industry classification).
    This code identifies your business sector (e.g., retail trade, IT services, manufacturing).
    
11. Click “Complete Registration.”
    Once confirmed, your Xero account will be connected to Invoici and ready to issue e-Invoices.

Note:
Xero automatically creates a tracking category called MyInvois Classification, which includes classification codes aligned with IRBM. This makes it easier to categorise and submit invoices accurately.

Also Read: How to Create Invoices in Xero

Step 3: Update Your Registration Details

If your company details change (e.g., new address, change of tax representative, or updated business activity), you’ll need to keep your Invoici registration up to date.

Here’s how:

1. Log in to Invoici.
   
2. Select the business you want to update.
   
3. Go to View/Edit Registration Details.
   
4. Make the necessary updates (for example, a new MSIC code if you’ve changed your business activities).
   
5. Click Update Registration.

Pro Tip: Always ensure your MyInvois Portal and Invoici records match. Any mismatch can cause invoice rejections during submission.

Step 4: Deregister (If Needed)

There may be cases where you no longer wish to use Invoici, such as if your business is ceasing operations or switching to a different intermediary.

To disconnect:

1. Log in to Invoici.
   
2. Select your business.
   
3. Go to Settings > Disconnect.
   
4. Enter the full organisation name as confirmation.
   
5. Click Disconnect.

Once disconnected, Xero will no longer be able to send e-Invoices on your behalf.

Example:
If XYZ Sdn. Bhd. is acquired and moves to a different accounting software, they can deregister from Invoici to avoid unnecessary connections.

Best Practices & Tips for a Smooth e-Invoicing Experience

1. Keep Your Records Aligned

When registering for e-Invoicing, it’s critical that your business information matches across MyInvois, Xero, and your government records.

• Details to double-check:
  
  • Business Registration Number (BRN)
  • Tax Identification Number (TIN)
  • Company name (exact spelling, including Sdn. Bhd. if applicable)
  • Business address

Why it matters: Even small discrepancies (e.g., “ABC Trading” vs. “ABC Trading Sdn. Bhd.”) can cause registration errors or rejected invoices.

Also Read: How To Read a Profit and Loss Statement in Xero

Recommendation:

• Always copy and paste your BRN and TIN from official documents (SSM certificate or IRBM portal) into Xero and MyInvois fields to avoid typos.
  
• Assign one responsible person in your finance team to maintain consistency across all platforms.

2. Monitor IRBM Updates

The Inland Revenue Board of Malaysia (IRBM) regularly releases updated e-Invoicing guidelines, technical specifications, and compliance timelines. Because the rollout is still in progress, businesses must stay alert to changes.

Example: In mid-2024, IRBM updated its specifications for MyInvois QR codes. Companies that didn’t check updates risked delays during registration.

Recommendation:

• Bookmark and regularly review the IRBM e-Invoicing portal.
  
• Subscribe to IRBM’s press releases or sign up for updates via your MyTax account.
  
• Consider assigning a compliance officer or outsourcing to a trusted partner like FastLane Group to ensure you never miss a critical change.

3. Use Xero Tracking for Compliance

One of the advantages of using Xero is that it automatically creates a tracking category called MyInvois Classification when you register with Invoici. This feature helps you categorise invoices based on IRBM’s classification codes.

Why this is helpful:

• Keeps your e-Invoices organised for easy reporting.
• Reduces the risk of misclassification that could delay IRBM validation.
• Provides better insights into revenue distribution across different categories.

Example:
If you’re a company that provides both consulting services and software products, you can classify invoices accordingly. This way, you’ll know at a glance how much revenue comes from each activity and ensure compliance with the right MSIC codes.

Recommendation:

• Train your finance team on how to use tracking categories in Xero.
• Run monthly reports to check for misclassified invoices before submission.

4. Plan Ahead for Compliance Deadlines

Waiting until the last minute can cause unnecessary stress, especially if your business handles high invoice volumes or operates in multiple industries.

Why early preparation helps:

• You’ll have time to test the system before your compliance date.
  
• Staff can get comfortable with new workflows and technology.
  
• You avoid technical bottlenecks especially since many companies will rush to register close to deadlines.

Example:
If your compliance deadline is 1 January 2025, aim to complete registration by October 2024. This gives you a 3-month buffer to identify and resolve potential issues.

Recommendation:

• Map out your e-Invoicing workflow in advance, from invoice creation to IRBM validation.
  
• Conduct a mock run of e-Invoice submissions using Xero before the actual mandate applies to your business.
  
• If you process hundreds of invoices monthly, consider automating recurring invoice templates in Xero to save time.

Final Recommendation: Get Expert Support

Even with clear steps, e-Invoicing can feel overwhelming especially if your company has complex operations or cross-border transactions. Partnering with a trusted provider like FastLane Group ensures:

• Accurate setup and integration of Xero with Invoici.
• Tailored training for your team.
• Ongoing compliance checks and reporting support.

This way, you can focus on running your business while staying fully compliant.

Also Read: What To Expect From Professional Xero Setup Training Sessions 

Common Mistakes to Avoid

Even with best practices, some businesses run into the same issues during e-Invoicing adoption. Here are the most frequent pitfalls to watch out for:

1. Mismatched BRN/TIN
   
   • Using outdated or incorrect details causes failed registration.
   • Always verify against official IRBM records before submitting.
     
2. Missing or Wrong MSIC Codes
   
   • Not assigning the correct Malaysian Standard Industrial Classification (MSIC) code can result in rejected invoices.
   • Double-check industry codes with IRBM’s published list.
     
3. Delaying Registration
   
   • Many companies wait until the last minute, which leads to bottlenecks and rushed errors.
   • Start at least 2–3 months before your compliance date.
     
4. Incorrect Invoice Formatting
   
   • Uploading invoices that don’t meet IRBM’s required format or missing QR codes can lead to rejections.
   • Use accounting software like Xero that integrates directly with MyInvois to reduce risks.
     
5. Overlooking Staff Training
   
   • A system is only as good as the people using it. If staff aren’t trained, mistakes will occur frequently.
   • Schedule workshops or training sessions early.

Final Recommendation: Businesses that want to avoid costly errors and ensure smooth compliance should consider professional support. FastLane Group helps companies align records, integrate Xero with MyInvois, and provide ongoing compliance monitoring.

Also Read: Benefits of a Xero Health Check for Long-Term Financial Accuracy 

Conclusion

Registering your business for e-Invoicing in Malaysia may seem complex, but with Xero and Invoici, the process is streamlined and fully integrated into your existing accounting workflow. By setting up early, you can stay ahead of compliance deadlines, reduce administrative workload, and future-proof your business against upcoming digital tax changes.

Simplify e-Invoicing Compliance with Xero Award-Winning Experts

FastLane Group, a Xero Platinum Champion Partner, is trusted by businesses across Asia for expert guidance and seamless implementation of Xero solutions. As the winner of the Xero Accounting Partner of the Year Hong Kong 2019, Xero Asia Advisory Partner of the Year 2024 and the Total Xero Award 2025, we’ve helped countless businesses streamline accounting, improve compliance, and unlock the full potential of Xero.

Whether you need Xero Setup & Training, Xero Health Check, Xero Accounting Services, or expert support to navigate Malaysia’s e-Invoicing rollout, our team is here to guide you every step of the way.

Get in touch with FastLane today to simplify your Xero journey and stay compliant with confidence.