E-Invoicing Malaysia - Coverage
E-Invoicing Malaysia - Coverage
Introduction
An e-Invoice is a digital representation of a transaction between a supplier and a buyer. e-Invoice replaces paper or electronic documents such as invoices, credit notes, and debit notes.
An e-Invoice contains the same essential information as a traditional document, for example, supplier’s and buyer’s details, item description, quantity, price excluding tax, tax, and total amount, which records transaction data for daily business operations.
Is e-invoicing mandatory in Malaysia?
Malaysia will introduce a countrywide e-invoicing mandate in June 2024.
The Malaysian government plans to introduce a Centralized Pre-Clearance CTC model on all transactions to increase efficiency and strengthen the tax administration. A gradual introduction of the obligation will commence in June 2024 and end in 2027.
Transaction Types Subject to E-Invoicing
e-Invoice covers typical transaction types such as
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Business to Business (B2B),
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Business to Consumer (B2C), and
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Business to Government (B2G).
In relation to certain B2C transactions where e-Invoices are not required by the end consumers to support the said transactions for tax purposes, suppliers will be allowed to issue a normal receipt or invoice in accordance with the current practices adopted by suppliers. After a certain period or timeframe, suppliers would be required to aggregate the normal receipts or invoices issued to end
For B2G transactions, the e-Invoice flow will be similar to B2B.
What is the applicability of e-invoicing?
e-Invoice applies to all taxpayers undertaking commercial activities in Malaysia.
This includes businesses engaged in the provision of goods and services and certain non-business transactions between individuals.
Guidance on e-Invoice requirements for certain non-business transactions between individual
taxpayers will be provided in due course.
Who Is Subject to E-Invoicing?
All individuals and legal entities are required to comply with e-Invoice requirement, including:
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Association;
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Body of persons;
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Branch;
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Business trust;
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Co-operative societies;
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Corporations;
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Limited liability partnership;
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Partnership;
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Property trust fund;
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Property trust;
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Real estate investment trust;
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Representative office and regional office;
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Trust body; and
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Unit trust.
Previous Updates on E-Invoicing
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The workflow of e-Invoicing https://www.ktp.com.my/.../e-invoicing-malaysia.../31jul23
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The timeline of e-Invoicing https://www.ktp.com.my/blog/e-invoicing-malaysia-timeline/2aug23
Source
IRB E-Invoicing Guide version 1.0 https://www.hasil.gov.my/en/e-invoice/
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