Global Business, Local Rules: Cracking the Code of e-Invoicing in Malaysia

E-Invoicing has emerged as a key element in Malaysia’s tax digitalization agenda, carrying significant implications for multinational enterprises operating in the country. This article examines the regulatory, operational and technological dimensions of implementing an e-Invoicing system within the Malaysian context. It highlights the mandatory compliance requirements set by the Inland Revenue Board of Malaysia, identifies challenges such as cross-border transactions, system integration and alignment with local reporting obligations, and evaluates the risks associated with non-compliance. Strategies for effective adoption are proposed, including phased implementation, the harmonization of processes with Malaysian regulations and structured stakeholder training. Findings suggest that, in Malaysia, e-Invoicing functions not only as a statutory requirement but also as a mechanism to enhance transparency, efficiency and consistency in tax administration. By situating Malaysia’s approach within its regulatory framework, this article contributes to ongoing discourse on the role of digitalization in strengthening national tax compliance.