E-Invoice Specific Guideline

Foreign suppliers' bills

• Accepted as proof of expense without needing self-billed e-Invoices if employees paid for expenses overseas.

• Only accepted if accompanied by a self-billed e-Invoice.

• Not accepted for any overseas expenses.

• Must be verified by a local tax authority before acceptance.

Diagram showing two scenarios of e-Invoicing between Supplier 1, Supplier 2, and Buyer.

• Scenario 1: Supplier 1 issues an e-Invoice to Buyer, and payment is made on behalf of Buyer by Supplier 2.

• Scenario 1: Supplier 1 issues an e-Invoice to Supplier 2, and payment is made by Buyer directly.

• Scenario 2: Supplier 2 issues an e-Invoice to Buyer, and payment is made by Supplier 1.

• Scenario 2: Supplier 1 issues an e-Invoice to Buyer, and payment is made by Supplier 2.

Role of the Buyer

• The buyer (employer) receives expense claims along with the supporting document.

• The buyer is responsible for approving all purchase orders.

• The buyer negotiates prices with suppliers before making a purchase.

• The buyer manages the inventory and stock levels.

e-Invoice for Staff Claims

• Employees must request an e-invoice in the name of the employer as proof of expense when a sale or transaction is concluded.

• Employees can request an e-invoice in their own name for personal expenses.

• An e-invoice is only required for transactions over a certain amount.

• Employees do not need to provide any proof of expense for staff claims.

Florist issued an e-Invoice directly to Perniagaan Adibah for flowers supplied on 7 Oct 2024.

• The e-Invoice was issued for flowers supplied.

• The e-Invoice was issued for fruits supplied.

• The e-Invoice was issued for vegetables supplied.

• The e-Invoice was issued for plants supplied.

Employer's role in e-invoicing

• The employer must approve all employee expenses before they are incurred.

• The employer acts as the buyer and must prove the employee is acting on their behalf for expenses.

• The employer is responsible for paying all invoices directly to the vendor.

• The employer has no role in the e-invoicing process.

Profit distribution and self-billed e-invoices.

• The taxpayer that makes the payment assumes the role of the supplier to issue self-billed e-invoices.

• Only registered suppliers can issue self-billed e-invoices.

• Self-billed e-invoices are only applicable for international transactions.

• Profit distribution does not involve e-invoicing.

Examples of expenses incurred by employees on behalf of the employer

• Accommodation

• Travel expenses

• Office supplies

• Meal allowances

Applicability of exceptions

• Exceptions apply only if perquisites and benefits are clearly stated in the employer's policy.

• Exceptions apply regardless of the employer's policy.

• Exceptions are applicable only during the probation period.

• Exceptions can be applied at the discretion of the employee.

Profit distribution (e.g., dividend distributions)

• Requires a self-billed e-invoice to be issued.

• Is subject to a 10% withholding tax.

• Can only be distributed once a year.

• Must be approved by the board of directors.