CSV vs API vs SFTP: Choosing the Right e-Invoice Integration in Malaysia

When it comes to integrating with LHDN's MyInvois platform, Malaysian businesses have multiple technical approaches to choose from. The three most common methods are CSV file-based submission, API system-to-system integration, and FTP/SFTP scheduled automation.

There is no single "best" method that suits every business. Each approach has distinct strengths, limitations, and operational implications. Understanding these trade-offs is essential to avoid costly misalignments between your business needs and your chosen integration strategy.

This article provides a neutral, practical comparison of these three integration methods to help Malaysian businesses make informed decisions about their e-Invoice compliance approach.

Overview of Common e-Invoice Integration Methods

Before diving into the details, here's a high-level overview of each method:

• CSV File-Based Submission: Businesses export invoice data from their systems as CSV files and upload them to a middleware platform or the MyInvois portal for processing.
• API System-to-System Integration: Business systems (such as ERP or accounting software) send invoice data directly to MyInvois via API calls, enabling near real-time submission and status tracking.
• FTP / SFTP Scheduled Automation: Invoice files are automatically transferred to a middleware server on a scheduled basis (e.g., nightly), where they are processed and submitted to MyInvois in batches.

Each of these methods can be combined with middleware platforms to handle validation, submission, and status tracking. For a broader overview of integration options, visit our integrations page.

CSV-Based e-Invoice Integration

How CSV Integration Works

CSV (Comma-Separated Values) integration is the simplest approach. Businesses export invoice data from their POS, accounting, or ERP systems as CSV files. These files are then uploaded to a middleware platform or directly to the MyInvois portal (if supported). The middleware validates the data, maps it to the LHDN e-Invoice schema, and submits it to MyInvois.

Typical Use Cases

CSV integration is well-suited for small to medium-sized businesses with:

• Low to moderate invoice volumes (e.g., 10–100 invoices per day)
• Limited IT resources or technical expertise
• Systems that can export data but lack API capabilities

Strengths and Limitations

Learn more about CSV-based integration.

API-Based e-Invoice Integration

How API Integration Works

API (Application Programming Interface) integration enables direct, system-to-system communication between your business software and MyInvois. When an invoice is generated in your ERP or accounting system, it can be automatically sent to MyInvois via an API call. The system receives immediate feedback on submission status, allowing for real-time error handling.

ERP and System Requirements

API integration requires that your business system either:

• Has built-in API capabilities (common in modern ERP systems)
• Can be extended with custom code or plugins to make API calls
• Integrates with a middleware platform that handles API communication on its behalf

Strengths and Limitations

When API Integration Makes Sense

API integration is ideal for businesses that:

• Process high volumes of invoices daily
• Require real-time submission and status visibility
• Have internal IT resources or access to system integrators
• Use modern ERP or accounting systems with API support

Learn more about API-based integration.

FTP / SFTP Scheduled e-Invoice Integration

How SFTP Integration Works

SFTP (Secure File Transfer Protocol) integration combines the simplicity of file-based workflows with the automation of scheduled processing. Businesses configure their systems to automatically export invoice files (CSV, JSON, or XML) to a designated folder. An automated script then transfers these files to a middleware server via SFTP on a scheduled basis (e.g., hourly or nightly). The middleware processes the files and submits them to MyInvois in batches.

High-Volume Processing Scenarios

SFTP integration is particularly well-suited for businesses that:

• Process hundreds or thousands of invoices daily
• Prefer batch-oriented workflows over real-time submission
• Use legacy systems that support file exports but not APIs

Strengths and Limitations

Learn more about SFTP-based integration.

CSV vs API vs SFTP: A Practical Comparison

The following table provides a neutral comparison of the three integration methods across key operational and technical dimensions:

How to Choose the Right Integration Method

Selecting the right integration method depends on several business and technical factors. Here are the key considerations:

Existing Systems (POS / ERP)

What capabilities does your current system have? If it can export CSV files but lacks API support, CSV or SFTP integration may be more practical. If it has robust API capabilities, API integration offers the most automation.

Invoice Volume

How many invoices do you process daily? Low-volume businesses (under 50 invoices/day) can manage with CSV. High-volume businesses (hundreds or thousands/day) benefit significantly from API or SFTP automation.

Internal IT Capability

Do you have in-house IT staff or access to system integrators? API integration requires technical expertise. CSV integration can be managed by non-technical staff with basic training.

Timeline and Compliance Readiness

How much time do you have before the MyInvois mandate applies to your business? CSV integration can be deployed quickly. API integration may take weeks or months to implement properly.

For real-world examples of how businesses have chosen integration methods, visit our case studies page.

Official Guidance and References

Businesses should always refer to official LHDN documentation when planning their e-Invoice integration. The regulatory landscape and technical specifications may evolve over time.

Key official resources include:

• LHDN e-Invoice Overview – General information on the MyInvois mandate and timelines.
• MyInvois API Documentation – Technical specifications for API integration.

Note: These links are provided for reference and do not constitute an endorsement. Businesses should verify the accuracy and applicability of official guidance to their specific circumstances.

Conclusion

CSV, API, and SFTP integration methods each have valid use cases for LHDN MyInvois compliance. CSV integration offers simplicity and low technical barriers, making it ideal for small businesses with limited IT resources. API integration provides real-time automation and scalability, suited for larger enterprises with technical capabilities. SFTP integration strikes a balance, offering automated batch processing for high-volume operations without requiring real-time API connectivity.

The correct choice depends on your business context—your existing systems, invoice volume, IT capabilities, and compliance timeline. Understanding the differences between these methods will help you select an approach that aligns with your operational needs and positions your business for successful MyInvois compliance.

For more information on specific integration methods, visit our integrations overview page.