Peppol E-Invoicing in Malaysia: Streamline Your Business with Global Standards
Discover how Peppol E-Invoicing empowers businesses in Malaysia to seamlessly exchange electronic invoices both domestically and internationally. Learn about Peppol, its benefits, and how SQL Account & ERP simplifies the process with comprehensive solutions, enabling you to enhance efficiency and reduce costs through a secure and standardized platform.
What is Peppol?
Peppol, or Pan-European Public Procurement On-Line is a global network and set of rules that make it easy for businesses to send and receive electronic documents like invoices. It ensures that these documents are sent in a standard format, no matter where the businesses are located or what software they use.
Peppol is used in more than 60 countries around the world, including many in Europe, North America, Asia, Australia, and Africa. Malaysia became part of the Peppol network in 2018.
What is Peppol Malaysia?
In Malaysia, the Malaysia Digital Economy Corporation (MDEC) acts as the Peppol Authority, responsible for overseeing the implementation and adoption of Peppol. MDEC accredits both service providers (SP) and Peppol-ready solution providers (PRSP), while also encouraging the use of e-invoicing nationwide.
SQL Account & ERP are accredited Peppol – Ready Solution Providers (PRSPs) in Malaysia. This means we offer a comprehensive Peppol solution, providing businesses with the tools and expertise they need to send and receive e-invoices seamlessly.
As an SP, we create and maintain the gateways that connect businesses and software to the Peppol network. This ensures that your business can exchange e-invoices with any other Peppol-enabled organization, both domestically and internationally.
As a PRSP, we offer accounting software and ERP solutions that are specifically designed to support Peppol e-invoicing. Our solutions provide the functionality you need to send and receive e-invoices without the hassle of becoming an Access Point provider yourself.
By choosing SQL Account & ERP, you can streamline your business processes, reduce costs, and improve efficiency through the power of Peppol e-invoicing.
How Peppol Malaysia Works?
Peppol Malaysia utilizes a 4-Corner Model, which involves four key parties:
- Supplier: The business sending the invoice.
- Supplier’s Access Point: A service provider that connects the supplier to the Peppol network.
- Buyer’s Access Point: A service provider that connects the buyer to the Peppol network.
- Buyer: The business receiving the invoice.
The process involves the supplier sending an invoice to their Access Point, which converts it into a standardized Peppol format. The invoice is then transmitted to the buyer’s Access Point, which converts it into a format compatible with the buyer’s system.
Comparing Peppol E-Invoicing and LHDN E-Invoice:
Key Differences and Benefits
LHDN E-Invoice and MDEC Peppol E-Invoicing are both digital invoicing systems used in Malaysia, but they serve distinct purposes and cater to different needs within the business landscape.
LHDN E-Invoice is primarily a tax compliance tool mandated by the Lembaga Hasil Dalam Negeri (LHDN), Malaysia’s Inland Revenue Board. Businesses with an annual turnover exceeding RM150,000 are required to adopt this system. The primary objective of LHDN E-Invoice is to ensure accurate and efficient tax reporting with transactional detail uploading to myInvois Portal. By digitizing invoices, the government aims to reduce the administrative burden on both taxpayers and tax authorities. Learn more about LHDN E-Invoice.
MDEC Peppol E-Invoicing is a standardized platform designed to facilitate the efficient exchange of e-invoices between businesses, both domestically and internationally. It is based on the Peppol network, a global standard for electronic document exchange. MDEC, the Malaysia Digital Economy Corporation, plays a crucial role in promoting the adoption of Peppol E-Invoicing in Malaysia.
While LHDN E-Invoice focuses on tax compliance, MDEC Peppol E-Invoicing primarily aims to streamline business processes and improve efficiency. However, the two systems are not mutually exclusive. Businesses can use both LHDN E-Invoice and Peppol E-Invoicing to achieve their goals.
Key differences between Peppol E-Invoicing and LHDN E-Invoice:
Purpose
LHDN E-Invoice is for transactional detail uploading to myInvois Portal for tax compliance, while MDEC Peppol E-Invoicing is for business efficiency.
Mandate
LHDN E-Invoice is mandatory for businesses above a certain size, while MDEC Peppol E-Invoicing is optional.
Focus
LHDN E-Invoice focuses on compliance with government rules, while MDEC Peppol E-Invoicing focuses on making it easier for businesses to do business together.
Businesses can benefit from using both systems
LHDN E-Invoice ensures compliance with tax laws, while MDEC Peppol E-Invoicing can make business operations more efficient and effective.
Free Peppol E-Invoicing Solution for SMEs Without Accounting Software
SQL Software is a certified and accredited provider for both SP & PRSP, offering SMEs a lifetime free invoicing solution. With SQL, you can download and install the software to effortlessly generate essential business documents such as quotations, delivery orders, sales invoices, debit notes, credit notes, purchase orders, and purchase invoices. Our software is compatible with the Peppol four-corner model, making it easy to send and receive invoices seamlessly. Download and install SQL today to start benefiting from the advantages of Peppol e-invoicing.
SQL Accounting Software Favoured Features
SQL Account is an accounting software that is suitable for all businesses, from small businesses to large organizations. It is crucial to find a business solution that suits you. We cater for every industry. Small business, cloud accounting software, to on-premise accounting software, choose the best fit for your business. SQL Account is user friendly & can be integrated with no fuss.
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