Challenge:
Our client was required to comply with the Inland Revenue Board of Malaysia’s eInvoice framework under the Continuous Transaction Control (CTC) model. This meant that every invoice issued needed to be validated and approved by LHDN in real-time before it could be considered legally valid. The existing invoicing process was batch-based and asynchronous, which posed challenges in terms of meeting CTC’s low-latency validation demands, maintaining invoice traceability, and preventing business disruption during rejections or delays.
Solution:
We deployed an end-to-end eInvoice compliance engine built to support real-time integration with the MyInvois portal under CTC standards. The solution handled synchronous submissions, automated error handling, and receipt of approved invoices without disrupting the client’s existing systems.
The solution enabled our client to:
- Submit Invoices in Real-Time:
Invoices were automatically validated and submitted to the MyInvois portal within seconds of generation. The LHDN’s validation response was received and appended instantly with a Unique Identifier and digital signature. - Manage Rejections Seamlessly:
Any validation failures or schema mismatches were automatically flagged. The system enabled auto-retry logic, real-time notifications, and guided correction workflows, minimizing delays. - Maintain Invoice Legality:
Only tax authority-approved invoices were released to customers, ensuring legal and fiscal compliance under the CTC model. - Track and Audit Every Submission:
A full log of submission attempts, LHDN responses, timestamps, and version history was maintained in a secure audit dashboard.
Our Services
- Real-time invoice validation engine
- LHDN-compliant submission protocols (CTC model)
- Synchronous response handling and QR code embedding
- Custom retry and exception management workflows
- Centralized audit dashboard for tax visibility
Key Outcomes
- Unwavering Compliance
The client successfully aligned with CTC requirements and LHDN’s MyInvois infrastructure, avoiding regulatory risks and staying ahead of the mandate timeline. - Improved Accuracy
Validation of invoices before release significantly reduced disputes and ensured that all tax-related data matched regulatory formats. - Real-Time Readiness
Invoices were submitted and validated within 3–5 seconds on average, enabling timely transactions, even during peak periods. - Enhanced Control and Transparency
Finance teams could now monitor invoice statuses in real-time and quickly respond to compliance issues, improving productivity and reducing tax audit burdens.
Conclusion
The implementation of a real-time eInvoice compliance system enabled the client to adapt seamlessly to Malaysia’s CTC model. This case shows how businesses can modernize compliance through real-time automation, improving not only regulatory alignment but also overall transaction efficiency and risk management. Other enterprises preparing for the MyInvois rollout can use this approach as a blueprint for successful transition.
