On 9 February 2024, the Inland Revenue Board of Malaysia (IRBM) published the Software Development Kit (SDK) for e-Invoicing. The e-Invoice Software Development Kit (SDK) is a collection of tools, libraries, and resources providing a set of functionalities, Application Programming Interfaces (APIs), and development guidelines to assist businesses in integrating their existing system to the MyInvois System via API.

The key updates include:

  1. Individuals who are not carrying on a business (for example, landlord earning passive rental income) are excluded from the requirement to issue self-billed e-Invoice. Should the tenant be a business operator, the requirement to issue a self-billed e-Invoice applies.
  2. For staff claims (e.g. F&B receipts) and staff perquisites (e.g. gym membership), as a concession ‘existing supporting document’ is allowed to substantiate the expense (instead of e-Invoice as required in the previous version of the guideline).
  3. Self-billed e-Invoices do not qualify for consolidation approach.
  4. For self-billed e-Invoices, MSIC code is not mandatory. This simplifies the self-billed e-Invoice issued with respect of purchase of goods or services from foreign vendors.
  5. In line with the information previously published in the FAQ, the guideline now requires self-billed e-Invoice for importation of goods to be issued ‘upon obtaining Customs clearance’. No specific grace period has been specified given the lead time between Customs clearance by forwarding agent and the accounting processes in relation to Accounts Payable (AP) posting.
  6. In relation to payment to foreign vendors in respect of services, self-billed e-Invoice is required to be issued upon receipt of the vendor’s invoice or, if earlier, upon payment. This approach is in line with Service Tax Act, but there is no grace period or lead time provided for compliance purposes (unlike the ‘taxable period’ approach in the Service Tax Act).
  7. The scope of self-billed e-Invoice has been expanded to include two additional matters, namely: (i) Interest payment; and (ii) Rebates (and the like) granted by businesses issuing monthly statements that are adopted as an e-Invoice (for example, corporate credit card statement inclusive of rebate which is recognized as income of the cardholder).
  8. Further guidance on self-billed e-Invoices for e-commerce transactions.

Click here to download the updated guidelines for full details.