E-Invoicing Glossary

Peppol

Peppol is an international e-invoicing network enabling cross-border and B2G electronic document exchange, adopted in Malaysia via MDEC.

What is Peppol?

Peppol (Pan-European Public Procurement On-Line) is an international open standard and network infrastructure originally developed in Europe to facilitate electronic procurement documents between governments and businesses. In Malaysia, Peppol has been adopted as the recommended standard for Business-to-Government (B2G) invoicing and cross-border transactions, with MDEC (Malaysia Digital Economy Corporation) serving as the Peppol Authority responsible for governing the network within the country.

The Peppol network operates on a "4-corner model": the supplier's software (Corner 1) submits an invoice to their certified Peppol Access Point (Corner 2), which routes it through the Peppol network to the buyer's Access Point (Corner 3), which then delivers it to the buyer's system (Corner 4). This decentralised model means businesses do not need to connect directly to each trading partner — any two entities connected to the Peppol network can exchange documents seamlessly. Malaysia uses the PINT MY (Peppol International Invoice Norm for Malaysia) format, which is an adaptation of the global PINT standard for local requirements including SST fields and MSIC codes.

The key difference between Peppol and MyInvois is that they serve complementary but distinct purposes. MyInvois is the national tax clearance platform — every invoice, regardless of transmission method, must be validated through MyInvois. Peppol, on the other hand, is about the transmission channel and document format used to send invoices between trading partners. Many businesses use Peppol-certified Access Points that both transmit invoices through the Peppol network and handle MyInvois submission simultaneously, streamlining the entire process.

In Malaysia, Peppol is particularly relevant for businesses that supply to government agencies (GLC, statutory bodies, ministries), as the government procurement framework is migrating to Peppol-enabled e-invoicing. It is also valuable for businesses with cross-border trading partners in Peppol-connected countries including Singapore, Australia, New Zealand, the EU member states, and many others. As of 2025, there are over 40 countries in the Peppol network, covering more than 300,000 businesses globally.

Who needs Peppol in Malaysia? Businesses that sell to government entities or government-linked companies, those with cross-border supply chains in Peppol-connected markets, and large enterprises looking for a future-proof, interoperable invoice infrastructure. Small businesses dealing exclusively in domestic B2B and B2C transactions can use simpler MyInvois submission methods, but adopting Peppol early positions a business well for regulatory expansion.

Related Terms

Frequently Asked Questions

Is Peppol mandatory in Malaysia?
Peppol is not universally mandatory in Malaysia, but it is strongly recommended or required for businesses supplying to government agencies and government-linked companies. MDEC has been rolling out Peppol for B2G procurement. For domestic B2B transactions, businesses can use direct MyInvois portal submission or API integration without Peppol. However, businesses trading with foreign Peppol-connected partners will need a Peppol Access Point to exchange invoices through the network.
Who manages Peppol in Malaysia?
MDEC (Malaysia Digital Economy Corporation) is the Peppol Authority for Malaysia. MDEC is responsible for accrediting Peppol Access Points, setting the Malaysian adaptation of the PINT standard (PINT MY), and governing Peppol network participation in the country. LHDN remains the authority for tax clearance through MyInvois, so both agencies play distinct but complementary roles in Malaysia's e-invoicing ecosystem.
What is a PINT format?
PINT (Peppol International Invoice Norm) is the global invoice standard defined by OpenPeppol for cross-border transactions. PINT MY is the Malaysian localisation of this standard, extended with fields required by LHDN such as the SST registration number, MSIC code, TIN, and Malaysia-specific tax categories. All invoices transmitted through the Peppol network in Malaysia must conform to the PINT MY specification, which is based on UBL 2.1 XML.

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EInvoicingMalaysia.com is an independent directory. We are not affiliated with LHDN or the Malaysian government. Glossary definitions are for informational purposes and do not constitute legal or tax advice. Always refer to the official LHDN e-Invoice Guidelines at hasil.gov.my for authoritative requirements.