E-Invoice Reporting from Your POS: What Malaysian SMEs Must Know by 2025

If you’re a business owner in Malaysia, you’ve probably heard the buzz about the new e-invoicing mandate. With the Lembaga Hasil Dalam Negeri (LHDN) rolling out the e-invoicing initiative in phases, it’s no longer a question of if you need to adapt—it’s about how fast you can get your systems ready.

One of the most important systems to pay attention to is your point-of-sale (POS) system. Why? Because this is where a large chunk of your transactions happen, especially if you run a retail, F&B, or service-based business. And soon, those transactions will need to be digitally reported in real time through e-invoicing.

Let’s talk about what this really means and how your F&B POS system plays a crucial role.

First, What Is E-Invoice Reporting?

In simple terms, e-invoicing means your invoices are no longer printed, emailed, or manually submitted—they’re created and sent electronically in a standardised format approved by LHDN.

For SMEs, this means each sale recorded in your POS (yes, even the small RM5 purchases!) will eventually need to be reflected in the e-invoicing system. The goal? Greater transparency, easier tax reporting, and fewer mistakes.

Why the POS System Matters So Much

Traditionally, POS systems have been viewed as tools for quick billing and inventory tracking. But now, they’re becoming frontline players in regulatory compliance.

If your POS isn’t e-invoice ready, here’s what you might be risking:

• Delays in compliance may lead to penalties.
• Manual workarounds to generate e-invoices outside the POS.
• Data mismatches that could affect your tax submissions.

That’s why having a cloud-based and integrated POS system is no longer a “nice-to-have”—it’s a necessity.

What Should You Look for in a POS System for 2025?

If you’re already using a modern POS, you might be halfway there. But if your system is still standalone or manually updated, it’s time to evaluate your options. Here’s what your POS needs to support:

1. E-Invoice Integration
    Your POS should be able to send data directly to LHDN’s e-invoicing platform, ideally through a certified Peppol service provider.
2. Real-Time Data Syncing
    Transactions should be synced immediately—no manual exporting or uploading required.
3. Customisable Invoice Fields
    Ensure your POS can accommodate different buyer types, invoice categories, and necessary metadata.
4. Cloud Connectivity
    A cloud-based POS ensures you can access and audit your records anytime, which helps if you’re ever asked to verify past transactions.

How This Impacts Daily Operations

You might be wondering—will all this tech slow you down at the checkout? Actually, the opposite.

A properly set-up system can:

• Speed up invoicing, especially for corporate customers who now require e-invoices.
• Reduce manual errors, as data flows directly from POS to the government platform.
• Simplify tax reporting, since your sales are already recorded and organised for review.

And let’s not forget: you’re building trust with your customers. Knowing that you’re compliant, transparent, and digitally equipped adds credibility to your brand—something particularly valuable in today’s competitive market.

Preparing Your Team

It’s also important to train your staff on what e-invoicing looks like. While the system will do most of the heavy lifting, your team still needs to understand:

• How to handle customer queries about e-invoices.
• What to do when a transaction fails to sync.
• How to retrieve invoice copies for clients when needed.

Being proactive here will save you headaches later on.

Don’t Wait Until the Last Minute

The phased implementation has already begun, with larger companies already in the system and SMEs expected to follow soon after. Don’t let the 2025 deadline catch you off guard.

Start by asking:

• Is my POS system capable of e-invoice reporting?
• Do I need to upgrade or switch providers?
• Is there enough time to train my staff and test the new system?

Even if you’re not required to go live just yet, getting familiar with the process now gives you a competitive edge—and a much smoother transition when the time comes.

Final Thoughts

E-invoicing is more than just a compliance requirement—it’s part of Malaysia’s push towards digital transformation for businesses. And your POS system is right at the heart of it.

Making the switch may seem like a big leap at first, but the long-term benefits—accuracy, efficiency, trust—are worth the effort.

So if you haven’t already started looking into your POS system’s capabilities, now’s the time to do it. Your future self (and your accountant) will thank you.