E-Invoicing in Malaysia now starts in August 2024. Get the latest IRBM guidelines and answers to your business questions about the new timeline and regulations.
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What is an e-Invoice?
An e-Invoice is a digital version of a traditional invoice that contains all the necessary transaction details between a supplier and a buyer.
What are the benefits of adopting e-Invoice?
Benefits include a unified invoicing process, facilitated tax return filing, improved business efficiency, and increased tax compliance.
Who is required to comply with e-Invoice requirements?
All taxpayers undertaking commercial activities in Malaysia, including associations, corporations, partnerships, and more, are required to comply.
What are the different types of e-Invoices?
Types include invoices, credit notes, debit notes, and refund notes.
What is the e-Invoice implementation timeline?
Implementation is phased, starting with businesses having an annual turnover of more than RM100 million from 1 August 2024.
How is the annual turnover for e-Invoice determined?
For taxpayers with audited financial statements, it's based on the annual turnover or revenue stated in the statement of comprehensive income for the financial year 2022. For those without audited statements, it's based on the annual revenue reported in the tax return for the year of assessment 2022.
Are there any exemptions from implementing e-Invoice?
Yes, certain individuals and entities such as rulers, government bodies, and individuals not conducting business are exempted.
What are the main features of the MyInvois Portal for e-Invoice?
The MyInvois Portal allows taxpayers to generate, submit, view, cancel, or reject invoices and provides a platform for those who cannot issue an e-Invoice on their own system.
How can taxpayers retrieve and verify their TIN for e-Invoice submission?
Taxpayers can use the MyTax Portal or the e-Daftar platform to retrieve and verify their TIN.
What is the process for creating and submitting an e-Invoice?
Taxpayers can create e-Invoices individually or in batches through the MyInvois Portal and submit them to IRBM for validation.
What happens during e-Invoice validation?
Once validated, the supplier receives a validated e-Invoice with a unique identifier number and a validation link. If unvalidated, the supplier must correct the errors and resubmit.
How are taxpayers notified about e-Invoice validation?
Both the supplier and buyer are notified via the MyInvois Portal and email.
What is the procedure for sharing a validated e-Invoice?
The supplier must share the validated e-Invoice with the buyer, which includes a QR code for validation.
Can a validated e-Invoice be rejected or cancelled?
Yes, both the supplier and buyer can cancel or reject a validated e-Invoice within 72 hours from the time of validation.
What are the steps for rejecting or cancelling an e-Invoice?
The buyer can request rejection within 72 hours if there are errors, and the supplier can cancel the e-Invoice if agreed upon. After 72 hours, no cancellation is allowed, and any adjustments require a new e-Invoice.
What should taxpayers do if they cannot reject or cancel an e-Invoice within 72 hours?
They can still make adjustments via the issuance of a credit note, debit note, or refund note e-Invoice.
Are there any challenges in issuing e-Invoices for certain types of income or expenses?
Yes, IRBM acknowledges challenges in issuing e-Invoices for income or expenses like employment income, pension, alimony, and specific dividend distributions. In such cases, an e-Invoice is not required.
What are the main features of the API mechanism for e-Invoice?
The API mechanism enables businesses to transmit high volumes of transactions conveniently and is ideal for large taxpayers or businesses with substantial transaction volumes.
What are the considerations for using the MyInvois Portal?
It is accessible to all taxpayers and suitable for businesses that need to issue e-Invoices but cannot establish an API connection.
What are the considerations for using the API mechanism?
It requires upfront investment in technology and adjustments to existing systems. The API connection can be made directly to IRBM or through intermediary technology providers.
What is the role of Peppol service providers in the API mechanism?
Peppol service providers facilitate the transmission of e-Invoices via the API mechanism.
Can businesses use non-Peppol technology providers for e-Invoice transmission?
Yes, businesses can use non-Peppol technology providers to transmit e-Invoices via the API mechanism.
What is the purpose of the IRBM Unique Identifier Number in e-Invoices?
It ensures traceability by IRBM and reduces instances of tampering with the e-Invoice.
Can taxpayers voluntarily participate in e-Invoice implementation before their mandated timeline?
Yes, taxpayers can opt to voluntarily participate in the implementation of e-Invoice at an earlier date, regardless of their annual turnover or revenue.
What is the e-Invoice implementation date for new businesses or operations commencing from 2023 onwards?
The e-Invoice implementation date for new businesses or operations starting from 2023 is 1 July 2025.
Are there any exemptions for issuing e-Invoices for certain types of income or expenses?
Yes, exemptions include employment income, pension, alimony, specific dividend distributions, Zakat, and scholarships.
Will the exemptions for e-Invoice issuance be reviewed and updated over time?
Yes, the exemptions mentioned will be reviewed and updated from time to time.
What should taxpayers do if they face challenges in issuing e-Invoices for certain income or expenses?
They should refer to the e-Invoice Specific Guideline for guidance on handling such situations.
Can suppliers replace the buyer's details with specific information for transactions with exempted persons?
Yes, suppliers can replace the buyer's details with information stated in the e-Invoice Specific Guideline for transactions with certain exempted persons.
What is the significance of the TIN field in e-Invoices for transactions with exempted persons?
Suppliers can input the buyer's TIN field with the general TIN assigned in the e-Invoice Specific Guideline for transactions with certain exempted persons.
Are entities owned by exempted persons required to implement e-Invoice?
Yes, entities owned by exempted persons are still required to implement e-Invoice according to the implementation timeline.
What should taxpayers do if they cannot retrieve their TIN through MyTax Portal?
They can use the e-Daftar platform to initiate registration and obtain their respective TIN.
What are the options available for creating and submitting e-Invoices?
Taxpayers can create e-Invoices individually or generate them in batches by uploading a defined layout file to the portal.
What is the significance of the visual representation of the validated e-Invoice in PDF?
It includes a QR code that can be used to validate the existence and status of the e-Invoice via the MyInvois Portal.
What should taxpayers do if their e-Invoice is returned unvalidated?
They should correct the errors and resubmit the e-Invoice for validation.
What are the requirements for the rejection or cancellation of e-Invoices?
The rejection or cancellation must be requested within 72 hours from the time of validation, and justifications must accompany cancellation requests.
What happens if an e-Invoice is not rejected or cancelled within 72 hours?
No cancellation would be allowed, and any subsequent adjustments would have to be made by issuing a new e-Invoice.
Can taxpayers still make adjustments to e-Invoices after the 72-hour timeframe?
Yes, adjustments can still be made via the issuance of a credit note, debit note, or refund note e-Invoice.
What is the significance of the 72-hour timeframe for e-Invoice rejection or cancellation?
It is provided for the convenience of the supplier and buyer, allowing them to address any errors or issues within a reasonable period.
What is the process for retrieving and verifying a taxpayer's TIN for e-Invoice submission?
Taxpayers can utilize the MyTax Portal or the e-Daftar platform to retrieve and verify their TIN.
What is the purpose of the MyInvois Portal in the e-Invoice model?
It serves as a platform for taxpayers to perform e-Invoice actions and view their respective e-Invoices.
What are the key considerations for taxpayers when choosing between MyInvois Portal and API for e-Invoice transmission?
Taxpayers should consider accessibility, business needs, upfront investment in technology, and existing system adjustments.
How does the e-Invoice model via API differ from the MyInvois Portal?
The API model is suitable for businesses with high transaction volumes and requires direct integration with existing systems, while the MyInvois Portal is more accessible for all taxpayers.
*What are the steps involved in the e-Invoice workflow via MyInvois Portal
How can taxpayers use MyInvois Portal for batch generation of e-Invoices?
They can upload a defined layout file containing the necessary invoice information to the portal for processing multiple transactions.
What should taxpayers do if they face issues with e-Invoice validation?
They should review the error message, correct any errors in the e-Invoice, and resubmit it for validation.
How can taxpayers ensure the accuracy of the information included in the e-Invoice submitted for validation?
They should double-check all details before submission and make use of the MyInvois Portal's validation features to minimize errors.
What are the consequences of not implementing e-Invoice by the mandated timeline?
Taxpayers who fail to comply with the implementation timeline may face penalties or other consequences as determined by IRBM.
Can taxpayers seek assistance from IRBM for e-Invoice implementation?
Yes, taxpayers can seek guidance and support from IRBM, which may provide additional resources such as SDK training materials and assistance for e-Invoice implementation.
