What is LHDN e-Invoice and why does it matter to your salon?
LHDN e-Invoice — officially known as the MyInvois system — is Malaysia's government-mandated digital invoicing programme. It requires businesses to submit transaction data to the Inland Revenue Board (LHDN) in real time, instead of issuing paper or PDF receipts that only exist on your end.
When a sale is completed, the invoice is sent to LHDN's MyInvois portal, validated, and returned with a unique government-issued invoice ID. That ID makes the transaction legally recognised for tax purposes — especially important for B2B clients who need to claim expenses.
In plain terms for salon owners: Every time a client pays you, that transaction eventually needs to be reported to LHDN in a specific digital format. A paper receipt or basic PDF is no longer sufficient on its own once your turnover crosses the applicable threshold.
The good news is that if your salon POS system is LHDN-approved and integrated with MyInvois, this happens automatically — you don't need to do anything extra at the point of sale.
Who must comply — the rollout phases
Malaysia's e-Invoice mandate is being introduced in phases based on annual turnover. Here's the full timeline:
| Phase | Date | Who it covers | Status |
|---|---|---|---|
| Phase 1 | 1 Aug 2024 | Annual turnover above RM100 million | Live |
| Phase 2 | 1 Jan 2025 | Annual turnover RM25 million – RM100 million | Live |
| Phase 3 | 1 Jul 2025 | All remaining taxpayers — including small businesses and salons | Live |
| Exemption | Ongoing | Annual turnover below RM150,000 | Currently exempt |
Important: If your salon's annual revenue exceeds RM150,000 — roughly RM12,500/month — you are required to comply with e-Invoice. Most established salons with 2+ staff and a regular client base will exceed this threshold.
Even if you're currently below the threshold, LHDN has indicated the exemption limit may be reviewed over time. Getting your system e-Invoice ready now avoids a rushed scramble later.
What the e-Invoice process actually looks like
Here's the step-by-step flow of what happens with every transaction under Malaysia's e-Invoice system.
Client pays at your salon
Cash, card, QR pay, e-wallet — any payment method. The transaction is completed in your salon POS system as normal.
Invoice data is formatted and submitted to LHDN
Your POS system packages the transaction details — service, price, tax, buyer/seller info — in LHDN's required format and sends it to MyInvois via API.
LHDN validates and returns a unique invoice ID
MyInvois checks the submission, validates it, and returns a unique invoice reference number. This happens within seconds.
Receipt is issued to client with LHDN ID
Your client receives their receipt — via WhatsApp, email, or printed — with the validated LHDN invoice ID included. The transaction is now fully compliant.
Transaction is stored in LHDN's system
LHDN retains the validated invoice in MyInvois. Your B2B clients can use it for expense claims and tax deductions. You have a clean audit trail with zero manual effort.
With Tunai: Steps 2, 3, and 4 happen automatically the moment a sale is completed. There is no additional action required from you or your staff.
What information does LHDN require from each transaction?
LHDN's MyInvois system requires the following data fields for every e-Invoice submission:
- Seller details — business name, Tax Identification Number (TIN), MSIC code, address
- Buyer details — name, TIN or MyKad/passport number for individuals, address
- Transaction date and time
- Itemised list of services or products — description, quantity, unit price
- Applicable taxes — SST, service charge where applicable
- Total amount payable
- Payment method
Tunai captures all of this automatically from each transaction and formats it correctly for MyInvois submission — including your salon's TIN and MSIC code, which are configured once during setup.
B2B vs B2C transactions: For walk-in retail clients (B2C), LHDN allows simplified invoices without full buyer TIN details for transactions under RM200. For corporate clients (B2B), full buyer details including TIN are required. Tunai handles both scenarios.
Native integration vs third-party middleware — what's the difference?
Not all salon systems handle LHDN e-Invoice the same way. Here's why it matters.
Some Malaysian salon systems use a third-party service like JomeInvoice to handle e-Invoice on their behalf. While this achieves compliance, it adds ongoing cost and a dependency on a separate service that may have its own downtime or pricing changes. Tunai built its LHDN integration directly using the government API — there is no middleware, no extra subscription, and no manual steps.
What happens if your salon doesn't comply?
Non-compliance with LHDN's e-Invoice requirements is treated as a tax offence under Malaysia's Income Tax Act 1967. Potential consequences include:
- Fines ranging from RM200 to RM20,000 per offence
- Imprisonment of up to 6 months for repeated non-compliance
- Inability for B2B clients to claim tax deductions on transactions with your business
- Increased audit risk from LHDN
LHDN's enforcement approach: Initial enforcement is expected to be progressive — education first, penalties for persistent non-compliance. However, if your salon crosses the RM150,000 annual turnover threshold and is not issuing e-Invoices, you are technically in breach. The practical risk increases as LHDN enforcement matures through 2025–2026.
The simplest way to eliminate this risk entirely is to use a POS system that handles e-Invoice automatically. If it's built in, you can't forget to do it.
How Tunai makes LHDN compliance automatic
Tunai is LHDN approved and MDEC certified. The MyInvois integration is built natively into the Tunai platform — not bolted on through a third party. Here's how it works in practice:
During your Tunai onboarding, our team helps you configure your salon's TIN, MSIC code, and business details. This is a one-time setup that takes about 15 minutes.
After that, every sale you complete in Tunai automatically triggers an e-Invoice submission to MyInvois. The process happens in the background — your staff don't see it, don't need to do anything extra, and the checkout experience for clients is unchanged. A WhatsApp receipt with the validated LHDN invoice ID is sent to the client automatically.
Tunai + LHDN — what salon owners say
"I was really worried about e-Invoice compliance. With Tunai it just happens automatically — I don't even think about it anymore." — Tunai customer, Petaling Jaya
"My accountant loves that all the LHDN records are already there when he needs them. Zero manual work on my end." — Tunai customer, Johor Bahru
Tunai is trusted by 7,000+ beauty businesses in Malaysia and Singapore. Starting from RM2.30/day — book a free demo to see the LHDN integration live.
Frequently asked questions
Everything Malaysian salon owners ask about LHDN e-Invoice.
Related guides
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