How to Issue e-Invoices for E-Commerce Transactions
Learn how to manage e-invoices for e-commerce transactions. Understand the guidelines for issuing e-invoices for sales and services conducted online and ensure compliance with Malaysian regulations.
E-commerce transactions involve the sale or purchase of goods or services over networks designed for placing or receiving orders. While the goods or services are ordered online, the payment and ultimate delivery do not necessarily need to be conducted online. This blog will clarify the guidelines for managing e-invoices in e-commerce transactions, ensuring compliance with Malaysian regulations.
Overview of an e-commerce transactions
Definition of E-Commerce Transactions
E-commerce transactions can occur between various parties, including enterprises, households, individuals, governments, and other public or private organizations.
Issuance of E-Invoice from E-Commerce Platform Provider to Purchaser
Currently, e-commerce platform providers issue an invoice, bill, or receipt to record transactions on their platforms, such as sales of goods or provision of services. With the implementation of e-invoicing, platform providers must:
Act as Supplier: E-commerce platform providers must assume the role of Supplier in issuing either:
An e-invoice upon the Purchaser’s request, or
A receipt if no e-invoice is requested by the Purchaser.
Compliance: The issuance of e-invoices is required for complying with relevant tax legislation and does not change the nature or commercial liability of the transaction.
Aggregation of Transactions: If the Purchaser does not require an e-invoice, the platform provider can aggregate transactions with such Purchasers on a monthly basis and submit a consolidated e-invoice to the IRBM within seven calendar days after month-end.
Roles in E-Invoicing:
Supplier: E-commerce platform provider.
Buyer: Purchaser.
Merchant Requirements: Merchants and service providers are not required to issue an e-invoice or receipt to the Purchaser.
Required Information: The information required in the e-invoice should assist the e-commerce platform provider in its issuance.
No
Data Field
Details to be included by e-commerce platform provider in an e-Invoice
Additional remarks
1
Buyer’s Name
Name of Purchaser
For business: Name of business For Malaysian individuals: Full name as per MyKad / MyTentera For non-Malaysian individuals: Full name as per passport / MyPR / MyKAS
2
Buyer’s TIN
TIN of Purchaser
For Malaysian Businesses: e-commerce platform provider to input Purchaser’s TIN and business registration number. For Foreign Businesses: e-commerce platform provider to input Purchaser’s TIN and business registration number, where available
Where TIN is not available or not provided, e-commerce platform provider to input “EI00000000020” for Foreign Businesses
Where business registration number is not available or not provided, e-commerce platform provider to input “NA”
3
Buyer’s Registration / Identification Number / Passport Number
Details of registration / identification number / passport number
For Malaysian individuals:
i. Option 1: TIN only
ii. Option 2: MyKad / MyTentera identification number only
iii. Option 3: Both TIN and MyKad / MyTentera identification number For non-Malaysian individuals:
i. Option 1: TIN only
ii. Option 2: Both TIN and passport number / MyPR / MyKAS identification number
For clarity, (i) refers to the TIN assigned by IRBM. In the event that the non-Malaysian individual does not have a TIN, Supplier may use the general TIN (as listed in Appendix 1 of this e-Invoice Specific Guideline), along with the passport number / MyPR / MyKAS identification number of the said individual.
4
Buyer’s Address
Address of Purchaser
e-commerce platform provider to input business address (for business) / residential address (for individual) of the Purchaser
5
Buyer’s Contact Number
Telephone number of Purchaser
e-commerce platform provider to input contact number of the Purchaser
6
Buyer’s SST Registration Number
SST registration number of Purchaser
Where applicable, e-commerce platform provider to input Purchaser’s SST registration number
e-commerce platform provider to input “NA” if such information is not applicable, not available or not provided
7
Classification
Classification of products or services
e-commerce platform provider to input a 3-digit integer (e.g., “000” to “999”), in accordance with the catalogue set by IRBM
Issuance of Self-Billed E-Invoice by E-Commerce Platform Provider
Upon concluding a sale or transaction on the platform, the Merchant or Service Provider is eligible to receive payment from the e-commerce platform provider. With the implementation of e-invoicing, platform providers must:
Issue Self-Billed E-Invoice: The platform provider must issue a self-billed e-invoice for all transactions concluded on the platform to comply with relevant tax legislation.
Roles in Self-Billed E-Invoicing:
Supplier: Merchant or Service Provider.
Buyer: E-commerce platform provider, which assumes the role of Supplier to issue a self-billed e-invoice.
Issuance Process: The process of issuing a self-billed e-invoice follows the detailed e-invoice workflow provided under the e-Invoice Guideline.
Submission Frequency: The platform provider can submit self-billed e-invoices for IRBM’s validation according to their current issuance frequency (e.g., daily, weekly, monthly).
Required Information: The information required in the self-billed e-invoice should assist the platform provider in its issuance.
No.
Data field
Details to be included by e-commerce platform provider in a self-billed e-Invoice
Additional remarks
1
Supplier’s Name
Name of Merchant and/or Service Provider
For business: Name of business For Malaysian individuals: Full name as per MyKad / MyTentera For non-Malaysian individuals: Full name as per passport / MyPR / MyKAS
2
Supplier’s TIN
TIN of Merchant and/or Service Provider
For Malaysian Business: e-commerce platform provider to input Merchant and/or Service Provider’s TIN and business registration number For Foreign Business: Where available, e-commerce platform provider to input Merchant and/or Service Provider’s TIN and business registration number
Where TIN is not available or not provided, e-commerce platform provider to input “EI00000000030” for Merchant and/or Service Provider
Where business registration number is not available or not provided, e-commerce platform provider to input “NA”
3
Supplier’s Registration / Identification Number / Passport Number
Details of registration / identification number / passport number
For Malaysian individuals:
i. Option 1: TIN only
ii. Option 2: MyKad / MyTentera identification number only
iii. Option 3: Both TIN and MyKad / MyTentera identification number For non-Malaysian individuals:
i. Option 1: TIN only
ii. Option 2: Both TIN and passport number / MyPR / MyKAS identification number
For clarity, (i) refers to the TIN assigned by IRBM. In the event that the non-Malaysian individual does not have a TIN, Supplier may use the general TIN (as listed in Appendix 1 of this e-Invoice Specific Guideline), along with the passport / MyPR / MyKAS identification number of the said individual
4
Supplier’s Address
Address of Merchant and/or Service Provider
e-commerce platform provider to input business address (for business) / residential address (for individual) of Merchant and/or Service Provider
5
Supplier’s Contact Number
Telephone number of Merchant and/or Service Provider
e-commerce platform provider to input the contact number of Merchant and/or Service Provider
6
Supplier’s SST Registration Number
SST registration number of Merchant and/or Service Provider
Where applicable, e-commerce platform provider to input Merchant and/or Service Provider’s SST registration number
Where Merchant and/or Service Provider is not registered for SST, e-commerce platform provider to input “NA”
7
Supplier’s Malaysia Standard Industrial Classification (MSIC code)
MSIC code of Merchant and/or Service Provider
Where applicable, e-commerce platform provider to input Merchant and/or Service Provider’s MSIC code
e-commerce platform provider to input “00000” if such information is not applicable, not available or not provided
8
Classification
Classification of products or services
e-commerce platform provider to input a 3-digit integer (e.g., “000” to “999”), in accordance with the catalogue set by IRBM
Issuance of E-Invoice from E-Commerce Platform Provider to Merchant or Service Provider
E-commerce platform providers often charge Merchants or Service Providers for the use of the platform. Upon implementation of e-invoicing, platform providers must:
Issue E-Invoice: The platform provider must issue an e-invoice for charges imposed on the Merchant or Service Provider for using the platform.
Roles in E-Invoicing:
Supplier: E-commerce platform provider.
Buyer: Merchant or Service Provider.
Issuance Process: The process of issuing the e-invoice should follow the detailed e-invoice workflow as discussed in the e-Invoice Guideline.
Required Information: The information required in the e-invoice should assist the platform provider in its issuance.
No
Data field
Details to be included by e-commerce platform provider in an e-Invoice
Additional Remarks
1
Buyer’s Name
Name of Merchant and/or Service Provider
For Business: Name of business For Malaysian individuals: Full name as per MyKad / MyTentera For non-Malaysian individuals: Full name as per passport / MyPR / MyKAS
2
Buyer’s TIN
TIN of Merchant and/or Service Provider
For Malaysian Business: e-commerce platform provider to input Merchant and/or Service Provider’s TIN For Foreign Business: Where available, e-commerce platform provider to input Merchant and/or Service Provider’s TIN
Where TIN is not available or not provided, e-commerce platform provider to input “EI00000000020” for Foreign Merchant and/or Service Provider
3
Buyer’s Registration / Identification Number / Passport Number
Details of registration / identification number / passport number
For Malaysian Individuals:
i. Option 1: TIN only
ii. Option 2: MyKad / MyTentera identification number only
iii. Option 3: Both TIN and MyKad / MyTentera identification number For non-Malaysian individuals:
i. Option 1: TIN only
ii. Option 2: Both TIN and passport number / MyPR / MyKAS identification number
For clarity, (i) refers to the TIN assigned by IRBM. In the event that the non-Malaysian individual does not have a TIN, Supplier may use the general TIN (as listed in Appendix 1 of this e-Invoice Specific Guideline), along with the passport / MyPR / MyKAS identification number of the said individual
4
Buyer’s Address
Address of Merchant and/or Service Provider
E-commerce platform provider to input the business address (for business) / residential address (for individual) of Merchant and/or Service Provider
5
Buyer’s Contact Number
Telephone number of Merchant and/or Service Provider
E-commerce platform provider to input the contact number of Merchant and/or Service Provider
6
Buyer’s SST Registration Number
SST registration number of Merchant and/or Service Provider
Where applicable, e-commerce platform provider to input Merchant and/or Service Provider’s SST registration number
Where Merchant and/or Service Provider is not registered for SST, e-commerce platform provider to input “NA”
7
Classification
Classification of products or services
e-commerce platform provider to input a 3-digit integer (e.g., “000” to “999”), in accordance with the catalogue set by IRBM
Conclusion
Properly managing e-invoices for e-commerce transactions is essential for compliance with Malaysian regulations and for accurate financial reporting. By following the guidelines outlined above, you can ensure your e-invoices are accurate and compliant.
For more details on Malaysia's e-invoicing model, check out our in-depth guide.
Related Blogs
To gain a deeper understanding of Malaysia's e-invoicing regulations and processes, check out these related blogs:
