e-Invoice covers typical transaction types such as B2B, B2C, and B2G. For B2G transactions, the e-Invoice flow will be similar to B2B. e-Invoice applies to all taxpayers undertaking commercial activities in Malaysia.
All individuals and legal entities are required to comply with e-Invoice requirement, including:
In relation to certain B2C transactions where e-Invoices are not required by the end consumers to support the said transactions for tax purposes, Suppliers will be allowed to issue a normal receipt or invoice in accordance with the current practices adopted by Suppliers. After a certain period or timeframe, Suppliers would be required to aggregate the normal receipts or invoices issued to end consumers and issue a consolidated e-Invoice to support the transactions made with end consumers
Currently, there are NO industries that are exempted from the e-Invoice implementation. Note that certain persons and types of income and expenses are exempted from e-Invoice implementation.
While e-Invoicing is a mandatory requirement for all taxpayers, certain individuals are presently exempt from the obligation to issue e-Invoices, including the issuance of self-billed e-Invoices as below:
Hence, the above-mentioned persons are not required to issue an e-Invoice (including self-billed e-Invoice). For tax purposes, the receipts / bills / invoices issued by the above-mentioned purposes would be used as proof of expense.
Suppliers who provide goods or services to the persons listed above are required to issue e-Invoice, in accordance with the implementation timeline.
The exemption only be applicable to said persons. Any entities (e.g., companies, limited liability partnership, etc.) owned by the above-mentioned persons would still be required to implement e-Invoice, in accordance with the e-Invoice implementation timeline
However, in relation to transactions with persons above, Suppliers are allowed to replace the Buyer’s details with the information stated in the e-Invoice Specific Guideline.
The IRBM acknowledged there are various challenges in issuing e-Invoices for certain types of income or expense. To ease the adoption of e-Invoice, an e-Invoice (including self-billed e-Invoice) is not required for the following types of income or expense:
As the e-invoicing mandate approaches, businesses must stay informed and take proactive steps to ensure compliance. By understanding the requirements, affected industries, and exemptions, businesses can effectively navigate the e-invoicing landscape and reap the benefits of digitalization. With SQL Accounting software, the number 1 Accounting Software trusted by more than 270,000 businesses, you can streamline your e-invoicing process and ensure compliance with all e-invoice rules and regulations.
SQL Accounting software automates the entire e-invoicing process, from generating e-invoices to submitting them to the relevant authorities. Saving you to manual insert 38 mandatory fields + 13 optional fields for each e-invoice. This eliminates the need for manual data entry and reduces the risk of errors, saving you time, money, and effort. Additionally, SQL Accounting software is compliant with all e-invoice rules and regulations, so you can be confident that your business is operating in full compliance with the law.
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Starting August 1, 2024, businesses will need to validate all invoices issued to buyers. You can issue e-invoices either directly through the LHDN off…