The Malaysian government is set to mandate retail POS system e-invoicing for all businesses by July 1, 2025. As part of a broader push toward digitization and improved tax compliance, e-invoicing is transforming how retailers manage their financial transactions. This transition will significantly impact the retail sector, improving operational efficiency, transparency, and compliance.
Here’s everything you need to know about how retail POS systems for e-invoicing will work in Malaysia and how it will affect the retail industry by 2025.
What is Retail POS System e-invoicing?
Retail POS system e-invoicing refers to the use of electronic invoices generated, transmitted, and stored digitally through a POS system that integrates with e-invoicing software. In Malaysia, businesses will be required to use e-invoicing for all transactions to comply with the new regulations by 2025. This system eliminates paper-based invoicing, ensuring that sales, purchases, and self-billing transactions are automatically captured and reported to the Inland Revenue Board of Malaysia (IRBM) in real-time.
How E-invoicing Malaysia Works in the Retail Context
1. Issuance of e-Invoice
Transaction at POS:
- When a customer completes a purchase at the Point of Sale (POS), transaction details (items, prices, taxes, etc.) are recorded.
e-Invoice Generation:
- The retailer generates the e-invoice using one of the following:
- MyInvois Portal: Manual entry or spreadsheet upload.
- API Integration: POS directly connects to MyInvois via LHDN-approved APIs.
- Middleware Solutions: Converts POS data into the required XML/JSON e-invoice format if the POS isn’t directly compatible.
- MyInvois Portal: Manual entry or spreadsheet upload.
2. Validation of e-Invoice
Near Real-Time Validation by LHDN (IRBM):
- The e-invoice is sent to LHDN via the MyInvois Portal or API.
- LHDN checks the invoice against tax and format rules.
Once Validated:
- The e-invoice is issued a Unique Identifier Number (UIN).
- A QR Code is generated to allow traceability and future verification.
3. Notification of Validated e-Invoice
- LHDN (IRBM) notifies both the supplier (retailer) and the buyer (customer) that the invoice is successfully validated.
- This notification includes the UIN and validation details.
4. Sharing of e-Invoice
Retailer Responsibility:
- The validated e-invoice or a visual representation (PDF with QR code) must be shared with the buyer.
- Delivery options:
- Printed receipt
- Email
- Digital platform (e.g., app, website)
- Printed receipt
5. Rejection or Cancellation of e-Invoice
72-Hour Window for Error Handling:
- Buyer Rejection: If there are discrepancies, buyers can reject the e-invoice within 72 hours.
- Supplier Cancellation: Retailers can cancel incorrect e-invoices within the same 72-hour window.
- Post-72 Hours: Any changes require a credit note, debit note, or refund note to amend the original invoice.
6. Storage & Access via MyInvois Portal
Storage:
- All validated e-invoices are stored securely in LHDN’s MyInvois system.
Retrieval & Reporting:
- Retailers and buyers can access invoices:
- Via MyInvois Portal (PDF/XML/JSON format)
- Through API for integration with internal systems or accounting software.
- Via MyInvois Portal (PDF/XML/JSON format)
Types of e-invoices
- Invoice: For standard sales
- Credit Note: For discounts, returns, or corrections
- Debit Note: For added charges
- Refund Note: For an actual refund involving the return of payment
Special Considerations for Retailers
- B2C Transactions: Buyer info is optional, but TIN is required for B2B.
- High Transaction Volume: Use API or middleware to streamline validation.
- Returns and Adjustments: Must use credit/refund notes.
Benefits of Retail POS System e-invoicing for Retailers Malaysia
The integration of e-invoicing with retail POS systems provides numerous advantages for businesses:
- Enhanced Tax Compliance: With e-invoicing for retail Malaysia, retailers can ensure real-time reporting of all transactions, reducing the risk of tax evasion and increasing tax compliance.
- Improved Operational Efficiency: Integrating e-invoicing software with POS systems for retailers reduces administrative burdens and manual errors, streamlining the invoicing process.
- Increased Transparency: e-invoicing enables accurate and traceable reporting, improving financial transparency and making it easier for businesses to manage their tax obligations.
Compliance Requirements for Retail POS System e-invoicing
To comply with the e-invoicing mandate, retail POS systems must meet several requirements:
- Structured Formats: e-invoices must be generated in XML or JSON formats, as prescribed by the IRBM.
- Tax Identification Number (TIN): Businesses must include their TIN on all e-invoices to ensure proper tax tracking.
- Record Retention: e-invoices must be securely stored for audit purposes. These records must be accessible for tax inspections and other regulatory requirements.
- Real-Time Reporting: e-invoices must be reported to the IRBM in real-time, ensuring accurate tracking of business transactions.
Integrating Retail POS Systems with e-invoicing Software
To ensure smooth operation, integrating your retail POS system with e-invoicing software is essential. Here’s how this integration works:
- POS System Integration: Retailers will need to integrate their POS systems for retail stores with e-invoicing software to ensure seamless transmission of sales data to the IRBM. This can be done via APIs or direct integration through the MyInvois platform.
- Middleware Role: In cases where the POS system for retail stores does not directly support e-invoicing, middleware solutions can bridge the gap. Middleware ensures that data from sales, purchases, and self-billing are accurately synchronized between the POS systems and e-invoicing software.
- Purchasing and Self-Billing: Middleware allows for the integration of e-invoicing for purchases and self-billing, two critical components not typically managed by POS systems. This ensures that all business transactions, including purchasing raw materials, inventory, and employee claims, are properly logged.
- Consolidation Across Multiple POS Systems: For businesses with multiple POS systems, middleware can ensure that data from different outlets and registers is collected and synchronized for consistent reporting.
What Common Unsolved Issues that JomeInvoice POS System e-invoice Software Can Solve
Middleware acts as a crucial tool in integrating POS systems for retailers with e-invoicing software. Many accounting solutions like Autocount, QuickBooks, and SQL are often bundled into POS systems to handle sales transactions. However, these systems typically do not handle purchases and self-billing, which are also essential components of the e-invoicing process in Malaysia.
Middleware serves as the intermediary, allowing seamless communication and data synchronization between the POS system for retail store, e-invoicing software, and other business systems. For example, businesses may use a different system to manage purchasing or employee reimbursements. Middleware ensures that all this data is synchronized for accurate financial reporting and tax compliance.
Ensuring Data Consistency Across Multiple POS Systems
For retailers with multiple outlets, middleware ensures e-invoicing data is consistent by consolidating and transferring transaction details to the e-invoicing system. It tracks key details like outlet location, register number, and item description for accurate logging.
Solutions for Outdated or Non-Compliant POS Systems
For businesses with outdated POS systems, upgrading to a compliant system is ideal. However, smaller businesses may manually upload e-invoices via the MyInvois portal—though this is time-consuming. Alternatively, middleware can integrate legacy POS systems with e-invoicing, converting spreadsheet data into formats readable by the IRBM servers, ensuring compliance without a full system overhaul.
e-invoicing Implementation Timeline (Updated March 2025)
The Malaysian government has established a phased implementation timeline for mandatory e-invoicing, targeting businesses based on their annual turnover. This structured approach aims to facilitate a smooth transition toward digital invoicing across all sectors.
Revised e-invoicing Implementation Timeline:
- August 1, 2024:
- Target Group: Businesses with an annual turnover exceeding RM100 million
- Status: Mandatory e-invoicing implementation has commenced.
- Target Group: Businesses with an annual turnover exceeding RM100 million
- January 1, 2025:
- Target Group: Businesses with annual turnovers between RM25 million and RM100 million.
- Status: Mandatory e-invoicing implementation has commenced.
- Target Group: Businesses with annual turnovers between RM25 million and RM100 million.
- July 1, 2025:
- Target Group: Businesses with annual turnovers between RM500,000 and RM25 million.
- Status: Mandatory e-invoicing implementation has commenced.
- Target Group: Businesses with annual turnovers between RM500,000 and RM25 million.
- January 1, 2026:
- Target Group: Businesses with annual turnovers between RM150,000 and RM500,000.
- Status: Mandatory e-invoicing implementation has commenced.
- Target Group: Businesses with annual turnovers between RM150,000 and RM500,000.
Key Considerations:
- Micro and Small Enterprises: Businesses with annual revenues below RM150,000 are currently exempt from mandatory e-invoicing requirements.
- Transition Period: A six-month interim relaxation period is provided for each phase, allowing businesses to adapt gradually. During this period, businesses can issue consolidated e-invoices and are not obligated to issue individual invoices upon buyer or supplier request.
- Determining Annual Turnover: Businesses should assess their annual turnover based on audited financial statements for the 2022 financial year or, for non-audited entities, revenue reported in the 2022 tax return. RTC Suite
e-invoicing Penalties for Non-Compliance: Retailers Malaysia Must Know
Retailers who fail to comply with e-invoicing regulations could face penalties, including fines ranging from RM200 to RM20,000 or imprisonment for up to six months. These penalties apply for each instance of non-compliance, making it essential for businesses to adopt retail POS system e-invoicing before the July 2025 deadline.
Start Preparing e-invoicing for Retail Malaysia in 2025
To prepare for the e-invoicing for retail Malaysia mandate, businesses should begin by assessing their current POS systems and evaluating how they can integrate with e-invoicing software. Whether through direct integration with the MyInvois portal or using middleware to bridge existing systems, it’s important to ensure compliance ahead of the deadlines.
By adopting retail POS system e-invoicing, businesses will not only streamline their invoicing processes but also ensure that they remain compliant with Malaysian tax laws, improve financial transparency, and avoid penalties.
Need help future-proofing your e-invoicing for retail operations?
👉 Visit jomeinvoice.my to explore seamless, scalable e-invoice solutions tailored for Malaysia’s retail industry.
Why Choose JomeInvoice? Malaysia #1 Comprehensive e-invoice Software for Retail POS System Integration
As Malaysia approaches the 2025 deadline for mandatory e-invoicing compliance, retail businesses must modernize their processes to stay ahead. But for many, integrating existing retail POS systems with e-invoice software—especially across sales, purchasing, and self-billing—remains a significant challenge.
This is where Jom eInvoice steps in.
Proudly developed in Malaysia, Jom eInvoice is the first comprehensive middleware solution purpose-built to unify disconnected systems and enable seamless, end-to-end e-invoice software for retail POS system integration.
🔄 JomeInvoice: Bridging the Gap Between POS, Purchasing, & Self-Billing
Most POS system software used in retail shops only handles sales transactions. However, full compliance with LHDN’s e-invoicing framework requires integrating purchasing (raw materials, rent, utilities) and self-billing (staff claims, overtime, medical reimbursements).
Jom eInvoice solves this by acting as the central bridge between your POS system, accounting software, payroll systems, and more—ensuring all components of your business operations are tracked, synced, and submitted in a unified e-invoice log.
🧩 POS System Compatibility? Not a Problem with Jom eInvoice
Still using legacy or offline POS systems from the early 2000s? Locked into a branded ecosystem like H&M or Padini where updates require corporate approval?
Jom eInvoice allows you to stay compliant without overhauling your tech stack. It can:
- Translate spreadsheets or data exports into LHDN-compliant formats
- Automatically sync purchasing and expense data alongside sales
- Seamlessly connect with accounting tools like SQL, QuickBooks, AutoCount—even if they aren’t natively integrated with your POS
💰 Reduce Integration Costs & Boost ROI with Middleware
Custom development to build POS-to-eInvoice links can be costly and time-consuming. Jom eInvoice lowers these barriers by offering:
- Pre-built integrations for popular accounting and POS systems
- Scalable architecture that grows with your retail business
- Shared infrastructure and expert support—cutting both upfront and maintenance costs
You get faster invoice validation, reduced human error, and complete LHDN compliance—all with minimal disruption.
☁️ Cloud-Ready for Modern Retail Environments
Already running a cloud-based POS system for retail shop operations? Jom eInvoice enhances your compliance capabilities even further:
- Real-time data syncing from POS to accounting to LHDN
- One dashboard for Sales, Purchasing, and Self-Billing activities
- Compatibility with HR, ERP, WMS, and payroll systems
For international brands operating in Malaysia, Jom eInvoice makes local compliance as easy as connecting to a secure middleware gateway.
✅ Get Future-Ready with JomeInvoice
With Jom eInvoice, Malaysia’s retail businesses now have a turnkey e-invoicing solution that connects the dots between your POS system, finance, HR, and compliance workflows—without replacing everything you already use.
Whether you’re a single-store operator or a nationwide brand, Jom eInvoice makes it simple, affordable, and seamless to stay compliant with Malaysia’s 2025 e-invoicing mandate.
👉 Explore the full solution at jomeinvoice.my and get your business ready for the future of digital compliance.
Contact JomeInvoice Sdn Bhd:
- Address:
Level 38, MYEG Tower, Empire City Damansara, Jalan PJU 8, Damansara Perdana, 47820 Petaling Jaya, Selangor
D-04-07, Plaza Bukit Jalil (Aurora Place), No. 1, Persiaran Jalil 1, Bandar Bukit Jalil, 57000 Kuala Lumpur - Phone: +6016-732 0163
- Social Media:
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Don’t wait—schedule a free e-invoice service consultation today and see why JomeInvoice is the top choice for businesses nationwide!
Read More on Retail POS System e-invoicing Malaysia Latest Updates
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