Transactions involving payments to agents, dealers, or distributors

Profit distribution (e.g., dividend distribution)

Overview of e-Invoice issuance for transaction with buyers

1. Buyer provides details for e-Invoice issuance. 2. Supplier issues and validates e-Invoice with LHDNM. 3. Supplier shares validated e-Invoice with Buyer. 4. Buyer can scan QR code to view e-Invoice validity. 5. Buyer substantiates transaction for tax purposes.

Flowchart of e-Invoice issuance process

The process of issuing an e-Invoice involves the supplier obtaining buyer details, validating the e-Invoice with LHDNM, and sharing it with the buyer. The buyer can scan a QR code to verify the e-Invoice for tax purposes.

Details required for e-Invoice for Malaysian individuals

Either TIN / MyKad / MyTentera identification number or both.

Details required for e-Invoice for non-Malaysian individuals

Either TIN or both TIN and passport number / MyPR / MyKAS identification number.

Action when TIN or MyKad/MyTentera is not provided

Use "000000000000" for the Buyer's / Shipping Recipient’s identification number or "E100000000010" for the TIN.

Request for an e-Invoice can be made within the month of transaction.

Buyers can request an e-Invoice up until the end of the transaction month.

Aggregation of transactions for e-Invoices.

Transactions where e-Invoices are not required by buyers are aggregated monthly.

Timeline for submitting consolidated e-Invoice.

Consolidated e-Invoice must be submitted for validation within 7 calendar days after month-end.

Supplier's input in consolidated e-Invoice.

Suppliers can input Buyer’s TIN, Buyer’s Name, and other details in the consolidated e-Invoice.

Methods for suppliers to adopt in e-Invoice.

Suppliers can adopt a summary of each receipt as separate line items or list receipts as line items.

Requirement for receipt reference numbers.

All receipt reference numbers must be included in the consolidated e-Invoice for enforcement and audit purposes.

Consolidation does not apply to self-billed e-Invoice except for certain circumstances.

1. Acquisition of goods or services from individual taxpayers not conducting a business. 2. Interest payments to the public at large. 3. Claim, compensation, or benefit payments from insurance business to individuals not conducting a business.

Limitations for MyInvois System performance.

1. Maximum size of 5MB per submission. 2. Maximum of 100 e-Invoices per submission. 3. Maximum size of 300KB per e-Invoice.

Suppliers' options for meeting e-Invoice requirements.

Suppliers can split receipts into several consolidated e-Invoices to meet size and quantity limitations.

Flowchart of e-Invoice issuance process involving supplier and buyer.

1. Supplier issues receipts to Buyer. 2. Supplier consolidates all receipts monthly. 3. Supplier issues and validates consolidated e-Invoice with LHDNM.

Transactions with Buyers: Automotive

Sale of any motor vehicle requires an e-Invoice.

Transactions with Buyers: Aviation

Sale of flight tickets and private charters require an e-Invoice.

Transactions with Buyers: Luxury Goods and Jewellery

Details for e-Invoice are pending; taxpayers can issue consolidated e-Invoice if buyers do not request it.

Transactions with Buyers: Construction

Construction contracts require an e-Invoice as defined in the Income Tax (Construction Contracts) Regulations 2007.

Transactions with Buyers: Wholesalers and Retailers of Construction Materials

Sale of construction materials requires an e-Invoice, regardless of volume sold.

Transactions with Buyers: Licensed Betting and Gaming

Payouts to winners for betting and gaming activities require an e-Invoice, except for casino and gaming machines.

Transactions with Buyers: Payment to Agents/Dealers/Distributors

Payments made to agents, dealers, or distributors require an e-Invoice.

LHDNM provides concessions to individuals for e-Invoice issuance challenges.

7 activities not allowed to issue consolidated e-Invoice

1. Automotive 2. Aviation 3. Luxury goods and jewelry 4. Construction 5. Wholesalers and retailers of construction materials 6. Licensed betting and gaming 7. Payment to agents/dealers/distributors

Requirement for e-Invoice issuance

Suppliers must obtain the Buyer’s details (e.g., TIN & Identification Number) for e-Invoice issuance.

Exception for taxpayers

Taxpayers can issue consolidated e-Invoice if buyers do not request for e-Invoice until further notice.

To assist Suppliers in complying with e-Invoice requirements, the IRBM allows consolidation of transactions with Buyers who do not require an e-Invoice.

Suppliers can consolidate transactions into a consolidated e-Invoice on a monthly basis.

If a Buyer does not require an e-Invoice, the Supplier issues normal receipts to the Buyer and consolidates all receipts monthly.

The Supplier consolidates all receipts monthly.

The Supplier must consolidate receipts within seven (7) calendar days after the month end.

Receipts must be consolidated within seven calendar days after the month end.

No notification is sent for a validated e-Invoice, and the validated e-Invoice is not required to be shared with the Buyer.

The validated e-Invoice does not require sharing with the Buyer.

Normal invoices are not required to be submitted for IRBM’s validation as they are not e-Invoices.

Normal invoices do not need to be submitted for validation.

Flowchart illustrating the process of issuing e-Invoices for Buyers who do not require them.

This flashcard contains a diagram.

Case Study: End up B2C must have 2 types of e-Invoice

Supplier issues normal receipts to Buyer.

Industries that issue statements/bills on a periodic basis

Industries such as Digital/Electronic Payment, Financial Services, Insurance, Stockbroking, Healthcare, and Telecommunication issue statements/bills periodically to record multiple transactions over a set period.

Issuance of e-Invoice to Buyer

e-Invoice is created and submitted to LHDNM, limited to income and expense of Supplier. Businesses can convert validated e-Invoice into visual presentation before sharing with Buyers. Issuance is in accordance with current issuance frequency.

Issuance of consolidated e-Invoice

Businesses can aggregate statements/bills to issue a consolidated e-Invoice within 7 calendar days after the end of the billing period. Regulated industries are not required to disclose statement/bill reference number in the consolidated e-Invoice.

Supplier 1 issues an e-Invoice directly to the Buyer. Supplier 2 then issues an e-Invoice to the Buyer for goods or services rendered by Supplier 2.

E-Invoice Specific Guideline Flashcards

Student preview

98 questions

Show all answers

1.

FLASHCARD QUESTION

Front

Overview of Specific Guideline

Back

13 focus areas related to e-invoicing guidelines

2.

FLASHCARD QUESTION

Front

Focus Area 1

Back

Transaction with buyers

3.

FLASHCARD QUESTION

Front

Focus Area 2

Back

Statement/bills on a periodic basis

4.

FLASHCARD QUESTION

Front

Focus Area 3

Back

Disbursement and reimbursement

5.

FLASHCARD QUESTION

Front

Focus Area 4

Back

Employment perquisites and benefits

6.

FLASHCARD QUESTION

Front

Focus Area 5

Back

Certain expenses incurred by employee on behalf of the employer

7.

FLASHCARD QUESTION

Front

Focus Area 6

Back

Self-billed e-Invoice

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