The Inland Revenue Board of Malaysia (IRBM) released updates regarding electronic invoicing (e-invoicing) on 28 June, 2024. These include revised versions of the e-invoice guideline (version 3.0) and the e-invoice specific guideline (version 2.2).
E-invoice guideline
The e-invoice guideline covers typical transaction types such as B2B, B2C, and B2G. The e-invoice flow for B2G transactions will be similar to B2B.
E-invoice applies to all persons in Malaysia. All individuals and legal entities, including associations, bodies of persons, business trusts, cooperative societies, corporations, partnerships, limited liability partnerships, etc, are required to comply with e-invoice requirements.
This guideline addresses the scope of implementation of the e-invoice, which covers:
- The simplified e-invoice concepts by presenting them in a clear and accessible manner for taxpayers to easily understand and implement;
- Step-by-step guidance on key aspects of e-invoice, including implementation, compliance, and recordkeeping, to ensure taxpayers can follow a structured approach in meeting their obligations;
- Practical examples to illustrate real-life scenarios, demonstrating how e-invoice requirements can be applied in different business contexts;
- Guidance to assist taxpayers in assessing their readiness for e-Invoice implementation and monitor compliance;
- Common questions and concerns that taxpayers may have regarding e-invoices, offering clear explanations and solutions to common challenges. Additional guidance may be issued periodically on particular issues or industry matters;
- Additional support documentation, such as a Software Development Kit (SDK), training materials, and assistance from the Inland Revenue Board of Malaysia (IRBM), to further aid stakeholders in understanding and implementing e-invoice.
E-invoice specific guideline
The IRBM has issued e-invoice specific guidelines in response to the need for further guidance on specific areas of e-Invoice, aiming to aid taxpayers in gaining a better understanding of certain e-invoice treatments and, ultimately, to implement e-invoice successfully.
The e-invoice specific guideline addresses the scope of e-invoice implementation, covering the concept of e-invoice and step-by-step guidance on the e-invoice workflow. It also provides additional guidance to taxpayers on how to complete the requirements for e-invoice issuance and enhances taxpayers’ understanding of e-invoice implementation using general and industry-specific examples.
The objective of the e-invoice specific guideline is to provide further guidance on the issuance of e-invoices relating to the following areas: transactions with buyers, statements/bills on a periodic basis, disbursement and reimbursement, employment perquisites and benefits, self-billed e-invoices, cross-border transactions, profit distribution (e.g., dividend distribution), etc.
Frequently Asked Questions (FAQs)
The IRBM has issued e-invoice related frequently asked questions (FAQs), including those for specific industries such as insurance, tourism, healthcare, aviation, financial services, and more. It includes questions related to the applicability of e-invoice implementation in Malaysia, issuance of e-invoices, validation of e-invoices, sharing of e-invoices, adjustments to e-invoices, etc.
