What are the LHDN 72-hour cancellation and rejection rules for Malaysian e-invoices?
Effective: 2024-08-01 · Authority: Inland Revenue Board of Malaysia (IRBM/LHDN)
Under Malaysia's LHDN CTC framework, once an e-invoice is validated and a Unique Identification Number (UIN) is issued, both parties face strict 72-hour windows: the supplier has 72 hours to cancel the validated document, and the buyer has 72 hours to request rejection via the MyInvois system. Any corrections required after these windows must be processed via formal debit notes, credit notes, or refund e-invoices that reference the original UIN.
How does the 72-hour rule operate in practice?
The 72-hour window begins from the timestamp on the UIN issued by LHDN upon successful invoice validation. Suppliers must monitor their MyInvois account or API integration for any post-clearance errors and execute system cancellations before the window expires. Buyers must configure their AP systems to automatically review and flag validated invoices for exceptions immediately upon UIN receipt notification. Both actions must be executed through the MyInvois Portal or LHDN API—commercial email or phone communication alone does not constitute a valid cancellation or rejection for LHDN purposes.
What adjustment mechanisms replace cancellation after 72 hours?
After the 72-hour window, adjustments are handled through: (1) credit note e-invoice: to reduce amounts on a previously cleared invoice, correct quantity or price errors, or reverse a transaction. The credit note must reference the original UIN; (2) debit note e-invoice: to increase amounts on a previously cleared invoice. The debit note must reference the original UIN; (3) refund e-invoice: specific to refund scenarios. All adjustment documents must go through LHDN clearance and receive their own UINs.
Frequently Asked Questions
- Does the 72-hour rule apply differently for API submissions versus MyInvois Portal submissions?
- The 72-hour rule applies identically regardless of the submission method (API or MyInvois Portal). The rule runs from the UIN issuance timestamp, which is the same event whether the invoice was submitted via API or manually through the portal.
- Is there a penalty specifically for missing the 72-hour cancellation window?
- LHDN has not published a specific penalty for failing to cancel an erroneous invoice within the 72-hour window. However, carrying an incorrect invoice in the LHDN audit record—and failing to correct it through the approved adjustment document process—may create discrepancies in the business's tax records that could result in penalties under Section 120 of the Income Tax Act 1967.
AutoFact AI is not certified by, affiliated with, or endorsed by any regulatory authority referenced on this page. References describe technical alignment with published regulatory requirements only.
Related Concepts
- What is Malaysia's LHDN 72-hour e-invoice cancellation and rejection window?
- What are the LHDN Unique Identification Number (UIN) and cryptographic QR code?
- What are Malaysia's self-billing e-invoice requirements for foreign supplier transactions?
- What is the difference between the LHDN API and the MyInvois Portal for e-invoice submission?
- What is Section 134A of the Income Tax Act 1967 and how does it underpin Malaysian e-invoicing?