What does e-invoicing cost a small business?
Nhu Tong··4 min read
There are three ways to e-invoice. You can type each invoice into the free MyInvois Portal, use software that connects to LHDN, or pay an accountant or bookkeeper to do it. The real cost is the fee plus your time, any upgrades and fixing mistakes. The cheapest route depends on how many invoices you issue and who does the work.
Do you need to spend anything?
If your business is exempt under the RM3 million rule, you do not have to issue e-invoices, so there is nothing to spend. Check first with our RM3 million exemption guide.
Exempt but thinking of carrying on? Then this guide helps you decide how lean to go.
The three routes
Route | What it is | Best for |
|---|---|---|
MyInvois Portal | Free from LHDN. You type each invoice in by hand | Low volume |
Software with API | Invoices go from your billing system straight to MyInvois | Regular B2B invoicing |
Accountant or bookkeeper | Someone else does it, for a fee | Owners with no time |
LHDN says the MyInvois Portal and the MyInvois mobile app are available to the public for free (FAQ Q111). You can use the portal, the API or both, as long as the same e-invoice is not sent twice (FAQ Q3).
Costs people forget
The fee is only part of it.
Upgrades. Ask whether your current software connects to MyInvois, or needs a paid upgrade first.
Support fees. Some software charges a yearly support or maintenance fee.
Your time. Typing, checking validation results and chasing customer TINs all add up.
Fixing mistakes. You can cancel a validated e-invoice within 72 hours. After that you need a credit, debit or refund note (Guideline v4.8, section 2.3.6).
Clean-up. Getting each customer's TIN and registration number on file takes time.
Work out your own cost in 15 minutes
Write down these six numbers:
Invoices per month
Minutes per invoice
Hourly cost of the person doing it
Monthly fee for software or your accountant
One-off set-up cost
Hours per month spent fixing errors
Here is an example with made-up numbers:
Item | Example |
|---|---|
Invoices per month | 40 |
Minutes per invoice | 6 |
Typing time | 4 hours a month |
Hourly cost of staff | RM25 |
Cost of typing | RM100 a month |
If your typing time costs more than a tool would, the portal is no longer the cheap option. If it costs less, the portal may be all you need.
Paid for set-up and now exempt?
It is not wasted. LHDN lets eligible businesses stop right away without applying, or carry on by choice (FAQ Q17 to Q20). Keeping your set-up may be cheaper than restarting later if:
your revenue is heading towards RM3 million
key customers prefer validated e-invoices
Before you cancel any service, check your contract.
Questions to ask before paying anyone
Is the fee monthly, yearly or one-off? What would an upgrade cost later?
Is MyInvois submission included, or an add-on?
Who fixes a rejected submission, and how fast?
Can I export my data if I leave?
For accountants: how long from sale to validated e-invoice?
FAQ
Is the MyInvois Portal enough for a small business?
For low volume, often yes. The cost is your time.Must I buy new accounting software for e-invoicing?
No. The portal is an option. Software helps when your volume or B2B customers grow.Can I stop paying if I am now exempt?
You can stop issuing e-invoices right away. Check your contracts before cancelling any service.
Keep the cost low with Duitbooks
Duitbooks is free while we are in beta. Create an invoice, submit it to MyInvois and see LHDN's validation result in the same place. Then send the PDF on WhatsApp. No accounting background needed.
