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By Jean Cheah

The Sage 300 e-Invoice Module Version 1.1 is now available, supporting the latest LHDN e-Invoice requirements in Malaysia. This update includes enhanced compliance readiness, improved validation standards, and support for the latest submission framework.

Customers currently using earlier versions are encouraged to review their setup and plan the migration to Version 1.1 to ensure continued compliance and smooth invoice submission.

 

Why The Migration Is Happening 

LHDN Version 1.0 was introduced as a transitional framework to ease businesses into Malaysia’s mandatory e-invoicing ecosystem. It was always intended to be a temporary measure. The Version 1.1 is now the future-ready, compliance-grade standard that LHDN is mandating for all businesses going forward. Continuing on Version 1.0 is no longer viable, as it is actively being phased out.

 

Key Differences: LHDN Doc. Version 1.0 vs. Doc. Version 1.1

Aspect LHDN 1.0 LHDN 1.1
Security Basic (self-signed / no enforced signature) Enhanced (digital signature required)
Trust Level Lower (no external validation) Higher (CA-certified validation)
Digital Signature Not required Mandatory / supported
Compliance Temporary / transitional Future standard (mandatory)
Status Being phased out Default going forward

 

Security

LHDN 1.1 — Enhanced security is now enforced. All e-invoices must be accompanied by a valid digital signature. This ensures that every document transmitted is tamper-proof and verifiable, significantly reducing the risk of fraud or data manipulation during transmission.

  • Businesses must ensure their systems are capable of generating and attaching digital signatures to every invoice submission. Sage solutions will handle this automatically once migrated.

 

Trust Level & Validation 

LHDN 1.1 — Introduces CA-certified (Certificate Authority) validation. All digital signatures must be issued and recognized by an approved CA, establishing a higher and legally recognized level of trust in the e-invoice ecosystem.

  • Invoices submitted under Version 1.1 carry greater legal standing and are verifiable by LHDN and trading partners. This also brings Malaysia’s e-invoicing framework in line with international standards.

 

Digital Signature Requirement 

LHDN 1.1 — Digital signatures are MANDATORY and fully supported. Every invoice must be digitally signed before submission to LHDN’s MyInvois portal.

  • This is one of the most significant technical changes. Customers using custom or third-party integrations outside of Sage must verify that their systems support digital certificate management. Sage-integrated customers will be covered under our updated connector.

 

Compliance Status 

LHDN 1.1 — Designated as the future mandatory standard. LHDN has confirmed that all businesses must migrate to API 1.1 to remain compliant with Malaysia’s e-invoicing mandate.

  • Remaining on LHDN 1.0 after the stipulated deadline will result in non-compliance with LHDN regulations, which may carry penalties or rejected invoice submissions. We strongly advise all customers to migrate without delay.

 

Operational Status 

LHDN 1.1 — The default going forward. All new integrations, certifications, and LHDN support will be built around Version 1.1.

  • This is not optional. The transition to Version 1.1 is a regulatory requirement, not a product upgrade. Customers should treat this migration with the same urgency as any statutory compliance deadline.

 

Contact us to learn more about the upgrade and migration process.

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