E-Invoicing Formats

E-Invoicing Formats: What You Need to Know

When you send an invoice to a client or customer, it’s like handing over a digital receipt for goods or services. But here’s the twist: The way you package that receipt matters. Let’s explore:

1. PDFs: The Familiar Ones

   • What Are They? PDFs (Portable Document Format) are like those trusty old recipe cards your grandma used. They’re easy to read and share.
   • Why Not Ideal for E-Invoicing? Well, the tax folks in Malaysia (the Inland Revenue Board) give them a side-eye. Why? Because they’re not super friendly for computers. Imagine a robot trying to read your grandma’s handwriting—it’s a struggle.

2. XML and JSON: The Dynamic Duo

   • XML (eXtensible Markup Language): Think of XML as a Lego set for data. You build your own blocks (tags) to describe stuff. It’s like creating a custom invoice template.
   • JSON (JavaScript Object Notation): JSON is like XML’s cool cousin. It’s sleek, lightweight, and machines love it. Developers high-five when they see JSON—it’s great for web apps and tech magic.

3. Mix and Match

   • Here’s the secret sauce: While XML and JSON are the stars, PDFs aren’t banned. You can still make pretty PDF invoices for humans. But—big but—the real deal (the invoice data) must be in XML or JSON. That’s the backstage pass to e-invoicing success.

In a Nutshell: PDFs are the front door, but XML and JSON are the secret tunnels that lead to tax compliance.