E-Invoicing in Malaysia (Updates on 6 April 2024)

The IRB had released the updated e-invoicing guidelines, specific guidelines as well as SDK on 6 April 2024. The following are the key changes:

1. Scholarship has been removed from the existing list of items that do not require e-invoice.
   
   
2. The use of the MyInvois Portal via the batch upload option will be carried out using a pre-defined Microsoft Excel spreadsheet, containing the necessary invoice information.
   
   
3. In the event where the taxpayer utilise the services of a service provider, the e-invoice shall be signed using the service provider’s digital certificate.
   
   
4. The guidelines specify the details with respect to individual shipping recipient for the purposes of e-invoicing.
   
   
5. The submission of e-invoicing via the MyInvois Portal is subject to the following limitations:
   
   a) Maximum size of 5MB per submission;
   
   b) Maximum of 100 e-invoices per submission;
   
   c) Maximum size of 300KB per e-invoice.
   
   
6. Consolidation for self-billed e-invoice is now allowed for the following:
   
   a) acquisition of goods or services from individual taxpayers (who are not conducting a business)
   
   b) interest payment to public at large (regardless business or individuals)
   
   
7. Self-billed is required on interest payment, except for the following:
   
   a) Businesses (e.g. financial institutions) that charge interest to public at large;
   
   b) Interest payment made by employee to employer; and
   
   c) Interest payment made by foreign payor to Malaysian taxpayers.
   
   For example, a self-billed e-invoice is required on interest payment for loan obtained from related company.
   
   
8. Separate self-billed e-invoice is required if there are different supplier involved. For example, where the rental is from three (3) individuals that co-own the property, there should be three self-billed e-invoices issued based on the agreed proportion of the owners.
   
   
9. The buyer that issues self-billed e-invoice is obligated to share the validated e-invoice with the supplier.
   
   
10. In relation to importation of goods, the Malaysian buyer is required to issue self-billed e-invoice latest by the end of the month following the month of customs clearance being obtained.
    
    Note: Previously it was upon obtaining customs clearance.
    
    
11. In relation to importation of services, self-billed e-invoice is required to be issued latest by the end of the month following the month upon:
    
    a) payment made by the Malaysian buyer; or
    
    b) receipt of invoice from foreign supplier.
    
    whichever is earlier.
    
    
12. If the e-invoice is required to be converted into RM-equivalent, the supplier is required to provide the currency exchange rate in the e-invoice.
    
    
13. For the purposes of self-billed e-invoice for importation of goods, the internal currency exchange rate of the Company can be applied.
    
    
14. Taxpayers are allowed to issue consolidated e-invoice on luxury goods and jewelry until further notice.
    
    
15. Supplier and buyer’s email is now an optional field in e-invoice.
    

Additionally, the IRB also issued an updated SDK with updates to SDK documentation, validations and relevant URLs.

The following is the updated summary of e-Invoicing in Malaysia:

Please refer to this link for the earlier updates issued by the IRB on 9 February 2024.