E-Invoicing in Malaysia (Updates on 28 June 2024)

The IRB recently released the updated e-invoicing guidelines and specific guidelines on 28 June 2024. The following are the key changes:

1. E-invoice (including self-billed) is not applicable to the following:
   
   
   • Employment income
     
     
   • Pension
     
     
   • Alimony
     
     
   • Distribution of dividend in specific circumstances
     
     
   • Zakat
     
     
   • Contract value for the buying or selling of securities or derivatives trade on a stock exchange or derivatives exchange in Malaysia or elsewhere (new)
     
     
   • Disposal of shares of a company incorporated in or outside Malaysia and not listed on the stock exchange, except where the disposer is a company, limited liability partnership, trust body or co-operative society. (new)
     
     
     
2. The MyInvois Portal will specify the mandatory and optional fields to facilitate taxpayers in filling out the data required for the issuance of e-invoice. The list of data fields is published in Appendix 1 of the General Guidelines.
   
   
   
3. The IRB provides concession in allowing the supplier or buyer (in the case of self-billed) to share either the validated e-invoice or a visual representation of the validated e-invoice with the buyer, until further notice.
   
   
   
4. The statuses of e-invoice undergoing validation within the MyInvois System include:
   
   
   • Submitted: The e-invoice has been successfully transmitted to MyInvois System and passed the immediate validations, including e-invoice structure and core field validations.
     
     
   • Valid: The e-invoice has passed all the immediate and background validations to meet all the data field requirements, formats and standards as defined by the IRB.
     
     
   • Invalid: The e-invoice has failed one or more validation checks due to incorrect data field requirements, formats or standards as defined by the IRB.
     
     
   • Cancelled: An e-invoice can only be cancelled by the Supplier within 72 hours of its validation date and time. A cancelled e-invoice is no longer valid, and if necessary, a new e-invoice is required to be issued.
     
     
     
5. The following are further clarification provided on the e-invoice fields:
   
   
   • Buyer and supplier’s registration / identification number: Taxpayers registered with SSM are required to only input the new 12-digit business registration number. For taxpayers registered with other authority / body, they are only required to input the relevant registeration number.
     
     
   • Shipping recipient’s name, shipping recipient’s address, shipping recipient’s TIN and shipping recipient’s registration / identification / passport number are no longer mandatory fields.
     
     
     
6. Consolidation does not apply to self-billed e-invoice, except for the following:
   
   
   • Transactions with individuals who are not conducting a business
     
     
   • Interest payment to public at large (regardless businesses or individuals)
     
     
   • Claim, compensation or benefit payments from the insurance business of an insurer to individuals (who are not conducting a business) (new)
     
     
7. Self-billed category is expanded to include claims, compensation or benefit payments from the insurance business of an insurer.
   
   

Please refer to this link for the previous updates in E-Invoicing.

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