Common Myths About LHDN E-Invoicing

Two young business owners wearing denim aprons, looking busy in a discussion over an ipad and an open laptop.

Despite the numerous benefits of the newly implemented Lembaga Hasil Dalam Negeri (LHDN)’s e-invoicing, many business owners are still hesitant to adopt e-invoicing due to various reasons.

This article will address some of the most common myths surrounding it.

Myth #1: E-Invoicing is Only for Large Corporations

Many small business owners believe that e-invoicing is a tool for large corporations with big budgets and complex tax needs. This could not be further from the truth. Smaller businesses stand to benefit the most from e-invoicing, as it reduces operational costs, minimises errors, and automates many aspects of tax filing.

If you run a business with only a few employees, e-invoicing can be your digital assistant, taking care of the tedious task of managing invoices while you focus on growing your business.

Myth #2: E-Invoicing Makes Tax Filing More Complex

Another common misconception is that e-invoicing complicates tax filing. It does the opposite. Since the system automatically organises and records each invoice, it simplifies the whole process. You no longer need to sort through piles of documents or manually enter data into your tax reports.

Think of e-invoicing like autopilot for your invoicing and tax filing. It does the heavy lifting for you, leaving you free to focus on the big picture of running your business.

Myth #3: E-Invoicing Is Not Secure for Tax Data

Business owners often worry that digital invoices may not be secure. However, LHDN’s e-invoicing system is designed with top-tier encryption, ensuring that your financial data is protected from cyber threats. It is far more secure than paper invoices, which can be lost, damaged, or stolen.

How Does the LHDN E-Invoicing Module Work?

an infographic on how the LHDN e-invoicing module works in six simplified steps. — (Source: LHDN e-Invoice)

How to Register an E-Invoicing Account on LHDN’s MyTax Portal

Ready to start using e-invoicing but unsure how to begin? This guide will help you get registered and start using it for tax filing.

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Steps to Register for LHDN’s E-Invoicing

Go to LHDN MyTax Portal
Sign in to your MyTax profile or register as a first-time user
Click on MyInvoice link on the top menu inside your MyTax dashboard
Enter your Taxpayer Profile Details and the required business general information
Complete and save your user profile
Click Finish Setup.

The Real Benefits of E-Invoicing for Tax Compliance

A young Japanese woman, sporting a medium hair tied to the back, looking at a paper documents or letter in a beautiful peach-colored kimono with flower patters on her left shoulder.

Take a local Japanese-themed cafe in Kuala Lumpur, for example, that adopted e-invoicing early on. Before making the switch, they could have struggled with delayed payments and missed tax filing deadlines due to messy invoicing. After implementing LHDN’s e-invoicing system, their cash flow improved by 25%, and they reported a 50% reduction in errors during tax filing season.

Now the business can stay organised and compliant with tax regulations as every invoice is securely stored and easily accessible. This proves that e-invoicing was not just a convenience—it was a business-saving tool.

Time to Embrace Digitalisation

LHDN’s e-invoicing system is much more than a digital upgrade—it is an essential tool for simplifying business tax filing, ensuring compliance, and protecting your business from costly errors. By registering for and using e-invoicing, you can focus on running your business while letting the system take care of the invoicing and tax details.

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