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"A Memorable Day at the e-Jaas Middleware Solution Event 2024"
The e-Jaas Middleware Solution Event 2024 was nothing short of a remarkable experience! Held to highlight the transformative power of e-Jaas, this event brought together industry experts, professionals, and innovators under one roof to explore the possibilities of digital transformation and seamless e-invoicing compliance.
Did you miss the event or want to revisit the highlights? Check out the vibrant photos from the day that captured the energy and excitement of our attendees and speakers.
E-commerce transactions involve the sale or purchase of goods or services conducted over networks designed for receiving or placing orders. While the payment and delivery of goods or services may occur offline, the transaction itself is initiated digitally.
This guide explores how e-invoicing impacts e-commerce platform providers, purchasers, and merchants, providing clarity on compliance with tax legislation and facilitating seamless transactions.
Figure 1 : General overview of an e-commerce transaction
Key Concepts of E-Invoicing in E-Commerce
What is an E-Commerce Transaction?
An e-commerce transaction refers to any sale or purchase of goods or services conducted over networks designed for placing orders. These transactions can occur between various parties, including individuals, businesses, and government entities. Payment and delivery may take place offline or through other non-digital methods.
E-Invoice Issuance Scenarios
1. Issuance of E-Invoice from E-Commerce Platform Provider to Purchaser
Current Practice
E-commerce platform providers issue invoices, bills, or receipts to purchasers to document transactions. Upon implementing e-invoicing, platform providers assume the role of the supplier to facilitate the issuance of:
E-Invoice: When requested by the purchaser.
Receipt: When no e-invoice is requested.
Compliance Notes
Issuing an e-invoice ensures compliance with tax laws such as the Income Tax Act 1967 and does not alter the commercial liability or nature of the transaction.
Consolidated E-Invoicing
For purchasers who do not request an e-invoice, providers can submit a consolidated e-invoice to the Inland Revenue Board of Malaysia (IRBM) within seven calendar days after month-end, barring specific exceptions.
Real-Life Scenario
Imagine a customer purchases a smartphone from an e-commerce platform. The platform issues a receipt for the transaction. If the customer later requests an e-invoice for tax purposes, the platform generates and sends it electronically, ensuring compliance with tax regulations.
2. Self-Billed E-Invoice Issuance to Merchants and Service Providers
Current Practice
Merchants and service providers receive payments from e-commerce platforms for goods sold or services rendered. Post e-invoice implementation, platform providers issue self-billed e-invoices to these merchants and service providers.
Compliance Notes
Self-billed e-invoices are issued solely to comply with tax laws and do not alter the commercial liabilities of the transaction. The issuance frequency aligns with existing statement issuance practices, such as daily or monthly.
Real-Life Scenario
A clothing merchant sells items via an e-commerce platform. The platform collects payments from buyers, deducts its service fee, and issues a self-billed e-invoice to the merchant reflecting the net payout.
3. E-Invoice Issuance for Platform Charges
Current Practice
E-commerce platforms charge merchants for using the platform. After implementing e-invoicing, the platform issues an e-invoice for these charges to the merchant.
Compliance Notes
This ensures accurate reporting and compliance with tax laws, with the e-commerce platform acting as the supplier.
Real-Life Scenario
A service provider subscribes to an e-commerce platform’s premium membership plan. The platform issues an e-invoice to the service provider detailing the subscription fee and applicable taxes.
Frequently Asked Questions (FAQ)
Q1. Who is responsible for issuing the e-invoice in e-commerce transactions?
The e-commerce platform provider acts as the supplier responsible for issuing e-invoices to purchasers, merchants, or service providers as applicable.
Q2. What happens if a purchaser does not request an e-invoice?
The platform provider can aggregate such transactions and submit a consolidated e-invoice to the IRBM within seven days after the end of the month.
Q3. Do merchants need to issue e-invoices?
No, the responsibility lies with the e-commerce platform provider. Merchants and service providers do not need to issue separate e-invoices for transactions conducted on the platform.
Q4. What details are required in an e-invoice?
An e-invoice must include data fields outlined in the e-Invoice Guideline, such as transaction details, purchaser’s information, and tax-related data.
Q5. Does issuing an e-invoice alter the nature of the transaction?
No, e-invoicing is a compliance measure and does not affect the commercial nature or liabilities of the transaction.
With the introduction of e-Invoicing in Malaysia, businesses are required to adopt a standardized process for documenting transactions, including those involving foreign purchasers. This guide provides Malaysian sellers with a comprehensive overview of how to issue e-Invoices for goods sold or services rendered to foreign purchasers. By understanding these steps and exceptions, sellers can ensure compliance with the Inland Revenue Board of Malaysia (IRBM) guidelines and streamline cross-border transaction reporting.
Figure 1: Transaction flow between Malaysian Seller (Supplier) and Foreign Purchaser (Buyer)
This guide highlights the necessary steps, data requirements, and practical considerations for e-Invoicing, while addressing unique challenges when dealing with foreign purchasers who are outside the MyInvois system.
Steps for Issuing E-invoice
Step 1: Issuing the e-Invoice
Upon completing a sale or service transaction, the Malaysian seller must issue an e-Invoice to the foreign purchaser. The e-Invoice will document the transaction as taxable income and serve as a record for both parties.
Supplier: Malaysian Seller
Buyer: Foreign Purchaser
Step 2: Completing the Required Fields
Sellers must fill in all mandatory fields as outlined in Appendices 1 and 2 of the e-Invoice Guidelines.
In cases where certain details are unavailable:
If a detail is not applicable to the foreign purchaser, the seller must input “NA” (e.g., local tax details).
If information is missing because it was not provided by the foreign purchaser, the seller must also use “NA.”
Step 3: Adhering to the Workflow
The Malaysian seller must follow the e-Invoice workflow described in the guidelines, which can be implemented either through the MyInvois Portal or via API. The following exceptions apply:
Notifications
Proof of Income
Error Management
Real Life Scenario
ABC Tech Solutions, a Malaysian software development company, delivers a custom software project worth RM 50,000 to XYZ International, a client based in Singapore.
To comply with the e-Invoicing requirements, ABC Tech Solutions generates an e-Invoice, including transaction details such as the service description, total payment, and applicable tax information. Since XYZ International is a foreign purchaser, some local fields like tax registration number are not applicable. ABC Tech Solutions inputs “NA” for these fields and submits the e-Invoice through the MyInvois Portal.
Once validated by IRBM, the e-Invoice serves as proof of income for ABC Tech Solutions. The company shares a PDF copy of the validated e-Invoice with XYZ International for record purposes. Later, XYZ International identifies an overcharge in the invoice, prompting ABC Tech Solutions to issue a credit note e-Invoice to adjust the transaction.
Conclusion
The implementation of e-Invoicing marks a significant step forward in streamlining and standardizing transaction reporting for Malaysian sellers. For cross-border transactions, especially those involving foreign purchasers, compliance with the outlined processes is essential to ensure smooth operations and adherence to the Inland Revenue Board of Malaysia (IRBM) requirements. By following this guide, Malaysian sellers can handle e-Invoices effectively while minimizing errors and ensuring transparency in their records.
What’s Next?
In the next article of this series, we’ll delve into E-Commerce Transactions and explore the unique requirements for e-Invoicing in the online marketplace. This comprehensive guide will address the specific guidelines for documenting online sales and purchases, ensuring that your digital transactions are fully compliant with Malaysia’s e-Invoice regulations.
Stay tuned to learn how e-Invoicing impacts e-commerce and gain practical insights for smooth implementation. Don’t miss out—get ready to elevate your understanding of e-Invoicing in the digital age!
FAQs : Cross Border Transactions
1. Do Malaysian sellers need to issue e-Invoices for foreign purchasers?
Yes, all Malaysian sellers must issue e-Invoices for transactions with foreign purchasers to comply with IRBM regulations.
2. What should Malaysian sellers do if required details for foreign purchasers are unavailable?
Sellers should input “NA” in fields where information is either not applicable or unavailable due to a lack of details from the foreign purchaser.
3. Will foreign purchasers receive notifications about validated e-Invoices?
No, foreign purchasers are not part of the MyInvois system and will not receive notifications from IRBM. Sellers may share a visual copy of the validated e-Invoice with the foreign purchaser for record purposes.
4. How should Malaysian sellers address errors in validated e-Invoices issued to foreign purchasers?
Errors must be corrected by issuing a credit note, debit note, or refund note e-Invoice, depending on the type of correction required.
5. Are foreign sellers required to issue e-Invoices to Malaysian purchasers?
No, foreign sellers are not obligated to issue e-Invoices under Malaysia’s system. However, Malaysian purchasers must ensure proper documentation and compliance with local tax requirements.
In an increasingly globalized world, cross-border transactions are commonplace for Malaysian businesses. Whether dealing with foreign suppliers or selling to international buyers, understanding the e-Invoicing requirements for such transactions is crucial. This guide covers two key areas:
Goods Sold or Services Rendered by a Foreign Seller (Supplier) to a Malaysian Purchaser (Buyer)
Goods Sold or Services Rendered by a Malaysian Seller (Supplier) to a Foreign Purchaser (Buyer)
By the end of this guide, you’ll have a clear understanding of how to handle e-Invoicing for these transactions and ensure compliance with Malaysian tax regulations.
Goods Sold or Services Rendered by a Foreign Seller to a Malaysian Purchaser
Overview
In cross-border transactions, when a Malaysian business purchases goods or services from a foreign supplier, the foreign seller issues an invoice or bill as per their local regulations. However, since foreign suppliers are not bound by Malaysian e-invoicing mandates, Malaysian buyers must issue a self-billed e-invoice to record the expense. This is crucial for tax documentation and compliance in Malaysia.
Figure 1: Transaction flow between Foreign Seller (Supplier) and Malaysian Purchaser (Buyer)
Steps for Issuing a Self-Billed E-Invoice by the Malaysian Purchaser
When a foreign supplier sells goods or services to a Malaysian buyer, the steps for issuing a self-billed e-invoice are as follows:
Step 1: Invoice Issued by Foreign Seller Once the foreign seller concludes a sale, they will issue an invoice or receipt to the Malaysian purchaser. This invoice will follow the invoicing requirements of the foreign seller’s country and serve as a record of the income generated from the transaction.
Step 2: Malaysian Purchaser Issues Self-Billed E-Invoice To document the expense for tax purposes, the Malaysian purchaser assumes the role of the “supplier” and must issue a self-billed e-invoice. The purchaser should refer to the original invoice provided by the foreign seller to fill in the necessary details. If any required details are missing or not applicable, the purchaser can input “NA” where relevant.
Step 3: Validation by IRBM The self-billed e-invoice will be submitted via the MyInvois Portal or API, as per the guidelines provided by the Inland Revenue Board of Malaysia (IRBM). Once validated, the Malaysian purchaser will receive a notification confirming the validity of the invoice. The foreign seller will not receive this notification.
Step 4: Proof of Expense The validated self-billed e-invoice will serve as proof of the expense for the Malaysian purchaser. There is no obligation for the purchaser to share this self-billed e-invoice with the foreign seller. However, it is essential for the purchaser to retain this document for tax reporting purposes.
Real Life Scenario
Let’s look at a real-life scenario to understand the process more clearly:
Scenario ABC Foods Sdn Bhd, a Malaysian company, has contracted with XYZ Consulting Ltd, a consultancy firm based in Australia, for professional services. XYZ Consulting Ltd issues an invoice amounting to RM150,000 for their services. Since the service is subject to Malaysia’s service tax on imported services, ABC Foods Sdn Bhd needs to issue a self-billed e-invoice for tax purposes.
ABC Foods Sdn Bhd refers to the invoice from XYZ Consulting Ltd to input the required details, such as the service description, transaction amount, and supplier’s details. Since XYZ Consulting Ltd does not have a Malaysian TIN, ABC Foods Sdn Bhd enters “NA” in the TIN field, as per the guidelines.
The self-billed e-invoice is then submitted to the MyInvois Portal for validation, and ABC Foods Sdn Bhd receives a notification from IRBM confirming the invoice’s validity. This self-billed e-invoice is retained by ABC Foods Sdn Bhd as proof of the expense and used for tax reporting.
Conclusion
This article has provided a clear guide on handling e-Invoicing forGoods Sold or Services Rendered by a Foreign Seller (Supplier) to a Malaysian Purchaser (Buyer), along with a practical scenario to illustrate the process. Following these steps ensures compliance and proper documentation for Malaysian businesses dealing with international suppliers.
In our next article, we’ll shift focus to Goods Sold or Services Rendered by a Malaysian Seller (Supplier) to a Foreign Purchaser (Buyer), outlining the requirements for Malaysian businesses exporting goods or services. Be sure to follow our page and stay updated, as this next piece will complete your understanding of e-Invoicing for cross-border transactions.
In the world of e-invoicing, clarity and compliance are crucial. When a sale or transaction is completed, the Supplier issues an e-Invoice. This serves as proof of income for the Supplier and a record of expenses for the Buyer. However, there are specific situations where another party, other than the Supplier, must issue a self-billed e-Invoice.
When to Use Self-Billed E-Invoices
In particular circumstances, the Buyer is responsible for issuing self-billed e-Invoices. Here are the scenarios where this applies:
Payments to Agents or Distributors: If you’re making payments to agents, dealers, or distributors, a self-billed e-Invoice is necessary. (See Section 9 of the e-Invoice Specific Guideline for more details.)
Foreign Suppliers: For goods sold or services rendered by foreign suppliers, a self-billed e-Invoice must be issued. (Refer to Section 10.4 for further details.)
Profit Distribution: In cases of profit distributions, such as dividends, the Buyer will issue a self-billed e-Invoice. (More information can be found in Section 11.)
E-commerce Transactions: Self-billed e-Invoices are required for electronic commerce transactions as outlined in Section 14.
Payouts for Betting or Gaming Winnings: For payouts to all betting and gaming winners.
Transactions with Individuals: If dealing with individuals who aren’t running a business, self-billed e-Invoices apply, but only if other circumstances don’t apply.
Interest Payments: Generally, interest payments must be handled by the institution charging interest, but there are exceptions for certain payments.
Insurance Claims and Compensation: Claim, compensation, or benefit payments from an insurance business require a self-billed e-Invoice.
Role of the Buyer in Issuing Self-Billed E-Invoices
When a Buyer needs to issue a self-billed e-Invoice, they essentially take on the role of the Supplier. They submit the e-Invoice to the Inland Revenue Board of Malaysia (IRBM) for validation. Once validated, this e-Invoice serves as proof of expense for tax purposes, meaning the actual Supplier doesn’t have to issue an additional invoice for that transaction.
It’s crucial that the Buyer shares the validated self-billed e-Invoice with the Supplier. When submitting the e-Invoice for validation via the MyInvois Portal, a QR code is generated, allowing for easy validation through the portal. If submitting via API transmission, the Buyer must ensure the QR code is included before sharing.
Recognizing practical challenges in this process, the IRBM has allowed flexibility for Buyers to share either the validated self-billed e-Invoice or a visual representation with the Supplier for nowParties Involved in Self-Billed E-Invoices
The parties in a self-billed e-Invoice scenario include the Buyer, who acts as the Supplier, and the actual Supplier.
Additional Requirements for Self-Billed E-Invoices
To streamline the e-Invoice issuance process, the IRBM has made provisions for individual Suppliers. If an individual Supplier provides either a Tax Identification Number (TIN) or MyKad/MyTentera identification number (instead of both), the Buyer should include the following details:
Real-Life Scenario: A Practical Example
Let’s take a look at a real-life scenario to illustrate this process:
Aida works at Tech Solutions Sdn Bhd, where she’s in charge of organizing client meetings. On March 15, 2025, she buys pastries from a local café, Munchies Delight, to treat her clients during a meeting. The café owner, Mr. Lim, hands Aida a handwritten receipt, as he hasn’t yet started issuing e-Invoices.
For this purchase, Tech Solutions is neither required nor allowed to issue a self-billed e-Invoice. Aida can use the handwritten receipt for tax purposes. However, with the full implementation of e-Invoicing set for July 1, 2025, Mr. Lim will need to start issuing e-Invoices for all his sales.
Conclusion
Self-billed e-invoices offer a streamlined approach for buyers in specific circumstances, allowing them to maintain accurate records and comply with tax regulations. Understanding when and how to issue self-billed e-invoices can significantly benefit businesses in managing their financial transactions effectively.
What’s Next?
In our upcoming article, we will delve into Cross-Border Transactions, exploring the unique challenges and requirements associated with issuing e-invoices for international dealings. Stay tuned to enhance your understanding of global e-invoicing practices and ensure your business is compliant in a dynamic market!
FAQs About Self-Billed E-Invoices
1. What is a self-billed e-Invoice?
A self-billed e-Invoice is issued by the Buyer instead of the Supplier in certain situations, primarily to serve as proof of expense for tax purposes.
2. When should a Buyer issue a self-billed e-Invoice?
Buyers must issue self-billed e-Invoices for specific transactions such as payments to agents, goods from foreign suppliers, and profit distributions, among others.
3. How does the Buyer validate the self-billed e-Invoice?
The Buyer submits the self-billed e-Invoice to the Inland Revenue Board of Malaysia (IRBM) for validation. Once approved, they can use it for tax deductions.
4. What happens if the Buyer doesn’t share the validated self-billed e-Invoice with the Supplier?
It’s essential for the Buyer to share the validated e-Invoice with the Supplier to avoid any compliance issues. If this is not done, it may lead to complications in tax reporting.
5. Can individual Suppliers provide only a TIN or identification number?
Yes, individual Suppliers can provide either a TIN or a MyKad/MyTentera identification number. The Buyer must input the provided details for the issuance of the self-billed e-Invoic
In business transactions, understanding the distinction between disbursement and reimbursement is crucial for effective financial management. This blog post will clarify these concepts, outline their processes, and provide real-life scenarios to illustrate their application.
Explanation
Reimbursements refer to out-of-pocket expenses incurred by the payee in the course of rendering services or selling goods to the payer (i.e., Buyer), which are subsequently reimbursed by the payer. Such expenses include airfare, travel, accommodation, telephone, and photocopying charges.
Disbursements are out-of-pocket expenses incurred by the payer (i.e., Buyer) and paid to a third party (on behalf of the payer) by the payee in connection with services rendered or goods sold by the payee to the payer.
Currently, Suppliers include both reimbursement and disbursement in their invoices to buyers.
Scenario 1
Supplier 1 issues an e-invoice directly to the Buyer for goods sold or services rendered. Subsequently, Supplier 2 makes a payment to Supplier 1 to settle the e-invoice issued to the Buyer, according to the arrangement agreed upon between Supplier 2 and the Buyer. As a result, Supplier 2 will issue an e-invoice to the Buyer for the goods sold or services rendered by Supplier 2.
Since Supplier 1 has already issued an e-invoice to the Buyer, this should not be included in the e-invoice issued by Supplier 2.
*Note: The figure Resources from LHDN Guideline: LHDN Guideline
Steps:
Agreement: Supplier 2 enters into an agreement with the Buyer for the supply of goods or provision of services. As part of the arrangement, Supplier 2 will pay on behalf of the Buyer for any expenses incurred during the contract period.
E-Invoice Issuance: Upon concluding a sale or transaction, Supplier 1 issues an e-invoice directly to the Buyer, ensuring it meets the required fields outlined in the e-invoice guidelines and submits it to IRBM for validation.
Payment Settlement: Supplier 2 makes payment on behalf of the Buyer to Supplier 1 to settle the outstanding amount. Supplier 1 provides payment proof to Supplier 2 for the settlement.
E-Invoice from Supplier 2: Supplier 2 issues an e-invoice to the Buyer for the goods supplied or services rendered by Supplier 2. This process mirrors the e-invoice issuance in Step 2. Supplier 2 should not include the payment made on behalf of the Buyer in its e-invoice nor issue an additional e-invoice for it. Supplier 2 provides payment proof to the Buyer to recover the payment made to Supplier 1 on behalf of the Buyer.
Real-Life Scenario for Scenario 1
Syarikat Amani hired an event planner for their product launch on 15 November 2024. On 5 November 2024, the planner arranged for flowers from a florist, who sent an e-invoice directly to Syarikat Amani for the flowers on 10 November 2024.
According to their contract, the event planner would pay the florist on behalf of Syarikat Amani and recover the cost later. On 12 November 2024, the event planner paid RM3,500 to the florist for the flowers.
On 16 November 2024, the event planner sent an e-invoice to Syarikat Amani for their services. This invoice included only the service fee and other charges, excluding the RM3,500 paid to the florist. To recover the RM3,500, the event planner provided a copy of the payment proof to Syarikat Amani.
Scenario 2
In this scenario, Supplier 1 issues an e-invoice to Supplier 2 for goods sold or services rendered intended for the Buyer. Following their agreement, Supplier 2 makes payment to Supplier 1 and then issues a separate e-invoice to the Buyer, clearly itemizing the service fee and any disbursement or reimbursement.
Steps:
Agreement: Supplier 2 enters into an agreement with the Buyer to supply goods or services. As part of this arrangement, Supplier 2 agrees to pay on behalf of the Buyer for any expenses incurred during the contract period.
E-Invoice Issuance: After completing a sale or transaction, Supplier 1 issues an e-invoice to Supplier 2, ensuring it meets the required fields outlined in the e-invoice guidelines and submits it for validation.
Payment Settlement: Supplier 2 makes the payment to Supplier 1. In turn, Supplier 1 provides payment proof to Supplier 2 for this settlement.
E-Invoice to Buyer: Supplier 2 then issues an e-invoice to the Buyer, detailing the service rendered and the amount incurred on behalf of the Buyer. This e-invoice will have separate line items for the service fee and the disbursement or reimbursement related to the expenses incurred.
Real-Life Scenario for Scenario 2
Syarikat Amani has hired an event planner for their product launch on 15 November 2024. For this event, the planner incurs RM30,000 to rent a hotel banquet hall. The hotel issues an e-invoice directly to the event planner for the rental.
In turn, the event planner will issue an e-invoice to Syarikat Amani. This e-invoice will cover not only the service provided for organizing the event but also include the hotel rental. To ensure clarity, the event planner will present these as separate line items in the e-invoice—one for the service fee and another for the banquet hall rental. This clear breakdown helps Syarikat Amani understand the costs associated with their event, ensuring transparency and proper budgeting for future projects.
Conclusion
Understanding disbursement and reimbursement is essential for effective financial management. By clearly defining these processes and following best practices, businesses can enhance transparency and streamline operations.
What’s Next?
In our upcoming blog post, we’ll dive into Self-Billed E-Invoices, exploring their benefits, how they work, and best practices for implementation. Stay tuned to enhance your understanding of this important invoicing method!
Frequently Asked Questions (FAQ)
1. What is the difference between disbursement and reimbursement?
Answer: Disbursement refers to expenses paid by the Buyer to a third party by the payee, while reimbursement refers to out-of-pocket expenses incurred by the payee for services rendered or goods sold, which are then reimbursed by the Buyer.
2. Why is it important to separate line items in an e-invoice?
Answer: Separating line items enhances transparency, making it clear what charges are for services and what are reimbursements. This helps avoid confusion and ensures accurate accounting.
3. How should I document reimbursements and disbursements?
Answer: Keep thorough records of all transactions, including e-invoices and payment proofs. This documentation is essential for audits and financial reviews.
4. Can I include reimbursable expenses in my service fee invoice?
Answer: It’s best to list reimbursable expenses as separate line items in the invoice to maintain clarity and transparency for the Buyer.
5. What are the best practices for managing reimbursements?
Answer: Clearly outline reimbursement policies in agreements, maintain good communication with your partners, and keep detailed records of all transactions
When a Buyer does not require an e-Invoice, the Supplier will issue a normal receipt to the Buyer, consistent with current business practice. However, this receipt will not be submitted for IRBM’s validation since it is not an e-Invoice.
Suppliers are allowed to aggregate transactions with Buyers who do not require an e-Invoice on a monthly basis and submit a consolidated e-Invoice to IRBM within seven (7) calendar days after the month ends.
Before we proceed, let’s take a moment to recall the key concepts highlighted in our graphic overview. Understanding these fundamentals is crucial for navigating the e-invoicing landscape effectively.
Now, let’s dive into a specific scenario: when a Buyer does not require an e-Invoice.
How to Create a Consolidated e-Invoice:
Suppliers have a couple of options for how to put together these consolidated e-Invoices:
Separate Line Items: List each receipt as a separate line item in the consolidated e-Invoice.
Continuous Receipt Numbers: Keep the receipt numbers in a continuous sequence. If there’s a break, start a new line item for the next chain.
Branch-Based Submission: If the Supplier has multiple branches, they can submit consolidated e-Invoices for each branch using either of the above methods.
Important Notes
Just a heads-up: Consolidation does not apply to self-billed e-Invoices, except in the following cases:
When dealing with individuals who aren’t in business
For interest payments to the general public
For claims or benefits from insurance companies to individuals
Steps to Issue a Consolidated e-Invoice
Where a Buyer does not require an e-Invoice, the steps involved for issuing a consolidated e-Invoice are:
Step 1: Check with Buyers to see if they need an e-Invoice.
Step 2: If they confirm they don’t need one, the Supplier will issue a regular receipt.
Step 3: Within seven (7) days after the month ends, the Supplier should gather all the receipt details from that month and create a consolidated e-Invoice.
Step 4: Make sure the consolidated e-Invoice has all the required fields as laid out in the e-Invoice Guideline.
Information Required for the Consolidated e-Invoice
Suppliers must complete the required fields outlined in Appendices 1 and 2 of the e-Invoice Guideline and include the Buyer’s details and certain transaction details, such as:
*Note: Resource from LHDN Guideline
Real-Life Scenario
Let’s look at a practical example to make things clearer.
CityMart Sdn Bhd is a friendly grocery chain with two branches—one in Johor Bahru and another in Kuching. In October 2025, CityMart issued regular receipts for all sales, with no e-Invoices requested. Here’s how things shaped up for them:
Johor Bahru Branch: 400 transactions totaling RM18,000
To follow the guidelines, CityMart prepared separate consolidated e-Invoices for each branch by 7 November 2025. They grouped their receipts into continuous sequences and listed them as line items for both branches, ensuring they included all the receipt reference numbers in the “Description” field.
Pro Tip: Another grocery store, AllMart Sdn Bhd, decided to list each receipt as a single line item in their consolidated e-Invoices. Different approaches can work as long as they follow the guidelines!
What’s Next?
In our next post, we’ll dive into Disbursement and Reimbursement, where we’ll discuss how Suppliers should handle these transactions and stay compliant with the latest e-Invoice rules. Stay tuned for more helpful insights and tips!
In the evolving landscape of business transactions, the introduction of e-Invoicing brings new requirements for Suppliers. Currently, transactions are documented through receipts, bills, or invoices provided in hardcopy or electronically (e.g., via email). With the shift to e-Invoicing, Suppliers are now required to issue e-Invoices for all transactions.
However, not all Buyers may need an e-Invoice. To streamline this process and reduce the administrative burden on both Suppliers and Buyers, the IRBM permits Suppliers to consolidate transactions with Buyers who do not require an e-Invoice into a single monthly e-Invoice.
Graphic Overview:
The graphic below illustrates two scenarios for handling transactions with Buyers:
Scenario 1: Buyer Requests an E-Invoice
Scenario 2: Buyer Does Not Require an E-Invoice
Note: This graphic is based on information from the LHDN’s e-Invoicing Guidelines.
Scenario 1: Buyer Requests an E-Invoice. We’ll cover the steps involved, the necessary fields for the e-Invoice, and provide an example to ensure you understand how to comply with this requirement.
Scenario 1 : Buyer Requests an E-Invoice
1. Request for E-Invoice:
If a Buyer needs an e-Invoice for a transaction, they should let the Supplier know by making a request.
2.Collecting Buyer’s Details:
Once the Supplier gets the request, they need to gather specific details from the Buyer.
3. Issue the E-Invoice:
Once the Supplier has collected the necessary details from the Buyer, they can proceed to issue the e-Invoice. Below are the steps to issue the E-Invoice.
Steps To Issue the E-Invoice
Step 1: Confirm with the Buyer if they indeed need an e-Invoice.
Step 2: If the Buyer confirms, they must provide the necessary details to the Supplier to complete the e-Invoice
Step 3: The Supplier fills out the remaining fields as specified in Appendices 1 and 2 of the e-Invoice Guidelines and issues the e-Invoice.
Step 4: Once validated, the e-Invoice serves as the Buyer’s official proof of expense for tax purposes.
Note: For detailed guidelines, refer to Table 3.1 and Appendices 1 and 2 in the e-Invoice Guidelines .
Details and Fields to be Provided by the Supplier for Issuing an E-Invoice
To successfully issue an e-Invoice, the Supplier must gather and provide the following details and fields:
Real Life Scenario:
Mr. Adam (Buyer) bought a laptop from Tech Innovations Ltd. (Supplier) for RM1,200 and requested an e-Invoice.
Tech Innovations Ltd. asked Mr. Adam for his personal details to issue the e-Invoice. Mr. Adam provided all the necessary details, including his identification number, but did not provide his Tax Identification Number (TIN).
Even without Mr. Adam’s TIN, Tech Innovations Ltd. was able to issue the e-Invoice. Once Mr. Adam receives the validated e-Invoice, he can use it as proof of expense for tax purposes.
What’s Next?
In the next post, we’ll explore Scenario 2: When the Buyer Does Not Require an E-Invoice. We’ll discuss how Suppliers can manage such transactions and the steps to consolidate them into a single e-Invoice. Stay tuned for a detailed guide on how to streamline your invoicing process efficiently!
E-invoicing is an essential component of modern business operations, offering efficiency and compliance in financial transactions. As more businesses adopt electronic invoicing, understanding the guidelines becomes crucial. In this series, we will explore various aspects of e-invoicing to help you navigate the requirements effectively.
What We’ll Cover:
1. Transactions with Buyers Learn how to handle e-invoicing when dealing with buyers. We’ll cover different scenarios, including the necessary steps and requirements for issuing e-invoices.
2. Disbursement and Reimbursement Understand the procedures for e-invoicing related to disbursements and reimbursements. We’ll provide insights into ensuring compliance and streamlining these financial processes.
3. Self-Billed E-Invoice Discover when and how to use self-billed e-invoices. This post will guide you through the conditions and steps involved in creating self-billed invoices.
4. Cross-Border Transactions Explore the complexities of e-invoicing for international transactions. We’ll discuss how to manage cross-border invoicing, including handling currency differences and regulatory compliance.
5. E-Commerce Transactions Get practical tips for managing e-invoicing in the context of e-commerce. Learn how to integrate e-invoicing into your online sales processes effectively.
Stay Tuned!
Our first detailed post will focus on “Transactions with Buyers”. In this post, we’ll dive into the specifics of issuing e-invoices when a buyer requires them. Read the full post here.
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