E-Invoicing has transformed how businesses in Malaysia handle financial transactions. Now everything must be digitalized and reported to the tax authority within timelines.
So what does this mean for property developers?
All property sales must maintain precise records of cash transactions and reported to the LHDN following their given format. This also creates a new level of financial accountability because each invoice is instantly visible to LHDN.
Early adoption can enhance efficiency, transparency, and competitiveness. To successfully implement the E-Invoice system, property developers should:
- Invest in advanced digital systems linked to the LHDN
- Train finance teams on regulations and best practices
- Ensure accurate financial detail capture
What is e-invoice?
First of all, e-invoice is more than just digital copies of paper invoices.
It is NOT about submitting a PDF or JPEG version of your invoices to LHDN.
This is a structured electronic document that follows a specific digital format (XML or JSON).
This format makes it machine-readable, ensuring seamless integration with various systems.
For property developers using systems like MHub, E-Invoices can be automatically generated and sent to both tax authority LHDN and the buyer, ensuring compliance and efficiency.
Benefits of E-Invoicing
MHub's E-invoice solution offers several benefits for property developers.
- By directly integrating with LHDN, the system automates compliance checks to reduce administrative burdens.
- The centralized digital repository enables property developers to instantly retrieve and preserve invoices for long-term.
- Additionally, the elimination of paper-based processes significantly reduces costs associated with printing, storage, and postage.