FAQ's

IRBM is currently organizing a series of engagement sessions with industry players, tax practitioners, professional bodies, and stakeholders to offer comprehensive information regarding e-Invoice implementation in Malaysia. These sessions will involve sharing action plans, strategies, and status updates on e-Invoice implementation, as well as facilitating two-way communication between IRBM and taxpayers to gather feedback and perspectives.

For any queries regarding the e-Invoice implementation in Malaysia, kindly send an e-mail to gautam.mahanti@myeinvois.my

IRBM offers two e-Invoice transmission mechanisms:

1. Utilizing the MyInvois Portal provided by IRBM.
2. Leveraging the Application Programming Interface (API). Check www.myeinvois.my for more information.

It’s important to note that Malaysia’s e-Invoice model follows the Continuous Transaction Control (CTC) Model, ensuring rigorous control through the validation of e-Invoices received by IRBM.

Implementation of e-Invoice is mandatory for all taxpayers and will be rolled out in phases based on annual turnover or revenue thresholds outlined in the statement of comprehensive income in the FY22 Audited Financial Statements.

Presently, no industries are exempt from e-Invoice implementation. However, certain individuals and types of income and expenses may be exempt.

Indeed, suppliers are granted a 72-hour timeframe to cancel an e-Invoice.

Certainly, all businesses must adhere to the phased mandatory implementation timeline, which aligns with their annual turnover or revenue threshold, requiring them to issue e-Invoices accordingly.

Indeed, IRBM has released an E-Invoice Software Development Kit (SDK) on February 9, 2024. This SDK comprises resources encompassing technical functionalities, Application Programming Interfaces (APIs), and development guidelines. Designed to facilitate the integration of existing systems with the MyInvois System via API, the SDK aims to support businesses in this process.

For any e-Invoice SDK-related queries, e-mail us at Gautam.mahanti@myeinvois.my

In readiness for e-Invoice implementation, businesses should focus on three primary factors:

• Human resources: Formulating a dedicated team equipped with the requisite expertise and skills is recommended to prepare for implementation.
• Business processes: A thorough review of current processes and procedures in issuing invoice transaction documents is essential.
• Technology and systems: Ensuring the availability of necessary resources, data structures, and existing IT capabilities to align with e-Invoice requirements is imperative.

Non-compliance with e-Invoice issuance is deemed an offense under Section 120(1)(d) of the Income Tax Act 1967. Offenders may face fines ranging from RM200 to RM20,000, imprisonment for up to 6 months, or both, for each instance of non-compliance.

The Malaysian government has introduced tax incentives and grants as part of Budget 2024. These include a tax deduction of up to RM50,000 per year of assessment for environmental, social, and governance-related expenses, including consultation fees for e-Invoice implementation by MSMEs. This incentive is applicable from the year of assessment 2024 to 2027.

Taxpayers registered with SSM should input the new 12-digit business registration number for e-Invoice issuance purposes. For taxpayers in Sabah and Sarawak, the business registration number provided by the local authority should be utilized.

Individual taxpayers should furnish a TIN with the prefix “IG” for e-Invoice purposes. Further instructions on how to retrieve and verify the TIN can be found in the e-Invoice Guideline.

The validation of e-Invoices by IRBM occurs in near real-time.

There is no specific mandate regarding the timing of e-Invoice issuance, except in certain circumstances such as consolidated e-Invoices, self-billed e-Invoices for the importation of goods/services, and e-Invoices for foreign income. Businesses should adhere to any applicable legislation in such cases.

Suppliers are not bound by a specific timeframe to issue e-Invoice adjustments. Taxpayers can adhere to their respective company policies for such adjustments. Given that foreign suppliers and/or buyers typically do not utilize the MyInvois System, any e-Invoice adjustments would be made through the issuance of debit notes, credit notes, or refund notes.

e-Invoice is mandated for all types of income and expenses, except for certain exemptions outlined in both the e-Invoice General Guideline and e-Invoice Specific Guideline. It’s important to note that these exemptions are subject to periodic review and updates.

During the transitional phase, all taxpayers are permitted to furnish either a standard bill/receipt/invoice (in line with current business practices) or a validated e-Invoice to substantiate a transaction for tax purposes until the complete implementation of E-Invoicing legislation.

Please be aware that self-billed e-Invoices are permitted only for specific transactions as outlined in the E-Invoice Specific Guideline. Businesses encountering challenges with internet connectivity and lacking infrastructure to generate e-Invoices are encouraged to reach out to the nearest IRBM branch across all states in Malaysia for further consultations.

Yes, suppliers have the capability to draft or create e-Invoices in a proforma format. However, the e-Invoice will only be deemed valid upon successful validation.

No, it is not possible. Suppliers must cancel the e-Invoice within 72 hours from the time of validation and subsequently issue a new e-Invoice if any alterations are needed. Any modifications made after the 72-hour validation period necessitate the issuance of a new e-Invoice, such as a debit note, credit note, or refund note e-Invoice, to rectify the original one. Subsequently, a new e-Invoice must be generated accordingly.

IRBM validation encompasses a series of checks aimed at ensuring that the e-Invoice submitted to IRBM adheres to the specified e-Invoice format and data structure set by IRBM.

The supplier’s invoice number will persist as a distinct field within the same invoice document, serving the supplier’s internal reference and tracking purposes. Following validation, the supplier will receive a validated e-Invoice, inclusive of the validation date and time, a validation link, and a Unique Identifier Number assigned by IRBM.

In instances where the deposit is refundable, the issuance of an e-Invoice is unnecessary. However, if the deposit is non-refundable, the issuance of an e-Invoice becomes mandatory.

If a director has entered into a contract for service, they must issue an e-Invoice to the company for any income received. However, if the director is under a contract of service, where the fees are considered part of employment income, they are currently exempt from e-Invoice issuance according to the e-Invoice Guideline. It’s important to note that these exemptions are subject to periodic review and updates.

The requirement for an e-Invoice for disbursements and reimbursements depends on the specific situation. Please refer to Section 5 of the e-Invoice Specific Guideline for more information.

Yes, a refund note e-Invoice is required for returning money to buyers, with the following exceptions:

1. Payment made in error by buyers
2. Buyer overpayment
3. Return of security deposits

No, currently, each individual transaction requires a separate self-billed e-Invoice.

Malaysian buyers must issue a self-billed e-Invoice once they obtain clearance from the Royal Malaysian Customs Department (RMCD) for the imported goods. The e-Invoice must include the relevant details outlined in the annexure on the importation of goods.

Malaysian buyers are required to issue a self-billed e-Invoice either upon payment by the Malaysian buyer or upon receipt of the invoice from the foreign supplier, whichever occurs earlier.

Indeed, issuing an e-Invoice for intercompany charges is mandatory.

No, an e-Invoice is not compulsory for inter-department or inter-division transactions within the same company. However, businesses may choose to utilize e-Invoices for such transactions based on their internal practices.

If the individual landlord is engaged in business activities, they are required to issue an e-Invoice to the tenant for property rental.

If the individual landlord is not engaged in business activities, the tenant (provided they are a business entity) would need to issue a self-billed e-Invoice for the rental of the property.

Regarding importation and exportation of goods, the current procedure enforced by JKDM remains applicable following the implementation of e-Invoice. Any alterations to this process will be communicated by JKDM.

The e-Invoice specifications outlined in Appendix 1 of the e-Invoice Guideline have been crafted considering the information essential for both IRBM and RMCD. Both IRBM and RMCD may utilize the e-Invoice for tax purposes. Nevertheless, it’s important to note that the existing documentation mandated by RMCD for RMCD clearance will still be required.

As of now, there isn’t a mandatory registration requirement. Nonetheless, technology providers are accountable for ensuring the functionality and dependability of their API integration with IRBM.

As of now, such a requirement is not in place. Nevertheless, it’s advisable to stay informed about potential future changes. For the latest updates on this matter, please consult IRBM’s Official Portal.

Yes, the API solution incorporates essential Network & Security monitoring tools to uphold data security and privacy. Moreover, it employs industry-standard encryption protocols to safeguard the confidentiality and integrity of transmitted information.

IRBM upholds stringent data security standards in managing taxpayers’ data. The monitoring and auditing of e-Invoice data security and privacy involve the following steps:

1. Assessment of data protection needs: Before commencing monitoring and auditing, IRBM identifies the types of data collected, processed, stored, and shared through the e-Invoice system. This process ensures compliance with legal and contractual obligations, such as data privacy laws and industry standards. Based on these needs, IRBM defines data security and privacy policies and objectives.
2. Implementation of data protection controls: To safeguard e-Invoice data from unauthorized access, modification, loss, or disclosure, IRBM implements appropriate technical and organizational controls. These measures may include encryption, authentication, access control, backup, firewall, antivirus, and logging.
3. Monitoring and auditing data protection performance and incidents: IRBM benchmarks performance against objectives and industry best practices, and reports, investigates, resolves, and learns from any data breaches, errors, complaints, or violations affecting e-Invoice data.
4. Review and improvement of data protection practices: IRBM utilizes monitoring and auditing results to identify gaps, weaknesses, or improvement opportunities in data protection policies, controls, performance, or incidents.

The QR code will simply contain a link to the validated e-Invoice. Therefore, any device capable of scanning a QR code, such as a mobile camera or a QR code scanner application, will suffice.

IRBM ensures the constant security of data by adhering to the ICT Security Policy of LHDNM and the General Circular: Guidelines for Information Management through Cloud Computing in the Public Service.

To safeguard e-Invoices from unauthorized access, alteration, loss, or disclosure, IRBM adheres to industry standards and implements robust cyber security measures, including encryption, authentication, access controls, firewalls, and more.

Furthermore, IRBM ensures system compliance and certification with ISO/IEC 27001 Information Security Management System (ISMS) and ISO 22301 Business Continuity Management System (BCMS).

Suppliers are required to generate e-Invoices in either XML or JSON file format when submitting them to IRBM for validation.

Yes, companies have the option to utilize both the API and the MyInvois Portal for transmitting e-Invoices. However, it’s recommended that taxpayers conduct reconciliation to prevent any duplication of e-Invoices submitted to IRBM.

While the system is designed to be available 99.97% of the time, in the rare event of IRBM’s system downtime, suppliers are granted a 72-hour window to issue e-Invoices once the system is operational again. A retry mechanism should be incorporated into the supplier’s system to automatically submit the e-Invoices once the system is back online.

Regarding the MyInvois Portal, suppliers should periodically check its availability and proceed to submit e-Invoices once it’s accessible.

Taxpayers have the flexibility to choose any transmission method, including utilizing Peppol Service Providers, that aligns best with their business requirements and preferences. All service providers in the market that can adhere to IRBM’s API specifications are welcomed.

The MyInvois Portal facilitates both individual and batch e-Invoice generation, allowing taxpayers to upload spreadsheets for processing multiple transactions. Prior to its launch, the MyInvois System undergoes rigorous testing with estimated volumes of e-Invoices to ensure seamless operation. Furthermore, it is equipped to scale up additional computing resources as needed.

The telecommunication service provider may adhere to the existing billing arrangement.

If the landlord is an individual or a company engaged in business activities, they must issue an e-Invoice to document the income from the rented premises. However, if the landlord is an individual not engaged in business, the telecommunication service provider must act as the issuer and generate a self-billed e-Invoice to validate the transaction for taxation purposes.

The telecommunication service provider solely facilitates the payment process for the add-on service. Regarding the issuance of e-Invoices:

1. If the third-party vendor is a local entity, they are responsible for issuing the e-Invoice to the customer.
2. If the third-party vendor is foreign, the customer must act as the Issuer and issue a self-billed e-Invoice for the service.
3. For any platform fees or commissions earned by the telecommunication service provider, they must issue e-Invoices accordingly.

• Joint costs
  For joint costs, the PSC operator’s TIN designated for ITA 1967 purposes is utilized as the Buyer’s TIN.
• Sole costs
  For sole costs, the contractor’s TIN designated for ITA 1967 purposes is used as the Buyer’s TIN, as these expenses are incurred solely for the contractor.IRBM recognizes the challenges associated with issuing e-Invoices for recharging joint costs related to petroleum operations to respective PSCs. Therefore, until further notice, PSC operators and/or contractors are exempted from issuing e-Invoices for the recharge of joint costs related to petroleum operations.

• For the sale of crude oil, which TIN should be designated as the Supplier’s TIN? 
  Regarding the Supplier’s TIN: The TIN number designated to the contractor for ITA 1967 purposes is to be utilized as the Supplier’s TIN in the corresponding e-Invoice.
  
• For costs incurred for petroleum operations, which TIN should be designated as the Buyer’s TIN?
  Concerning the Buyer’s TIN: For joint costs, the TIN assigned to the operator of the contiguous PSC for ITA 1967 purposes should serve as the Buyer’s TIN. As for sole costs incurred by contractors of contiguous PSCs, the TIN assigned to the contractor for ITA 1967 purposes should be employed as the Buyer’s TIN.

IRBM recognizes the potential difficulties associated with issuing e-Invoices for inter-ledger transactions involving petroleum operations between a PSC and the operator of the PSC. Consequently, e-Invoice requirements for such transactions are waived until further notice.

The existing invoicing procedure will remain in effect with the implementation of e-Invoice. For instance, if the contractor sells the petroleum product to the agent, who then sells it to the buyer, the contractor should issue an e-Invoice to the agent, and the agent should issue an e-Invoice to the buyer.

The PSC operator is permitted to issue e-Invoices on behalf of contractors for the sale of gas under the Upstream Gas Sales Agreement, maintaining the existing invoicing process. When issuing e-Invoices, the contractor’s information should be utilized as the Supplier’s details. It’s important to note that the e-Invoice will only be visible in the respective contractor’s MyInvois portal after validation, and it won’t be visible in the Operator’s portal.

The existing invoicing process will remain in place following the implementation of e-Invoicing. Any adjustments, whether upwards or downwards, will be managed through the issuance of debit or credit note e-Invoices.

Cash call and joint interest billing (JIB) are settlement methods and do not require the issuance of e-Invoices.

The hospital is permitted to adhere to its existing billing procedures. However, following the implementation of e-Invoice, the bill must be in the form of an e-Invoice.

The hospital may adhere to its existing billing practices. If necessary, it can provide draft or proforma invoices to the insurance company to request an FGL. Following the finalization of the invoicing/billing arrangement, the hospital must submit the e-Invoice to IRBM for validation.

The hospital is permitted to adhere to its existing billing procedures.

If the contract for service is directly between the hospital and an individual doctor, the supplier’s details should reflect the individual doctor, who is then responsible for issuing the e-Invoice. If the contract for service is between the hospital and a company representing the doctors, the supplier’s details should represent the company, which is then responsible for issuing the e-Invoice.

Indeed, it is necessary to issue an e-invoice for the space rental.

For e-Invoice purposes, the Buyer’s details should correspond to those of the parent, guardian, or other relevant parties, depending on the circumstances.

The hospital is permitted to adhere to its existing billing procedures.

Indeed, the hospital is permitted to issue a consolidated e-Invoice for transactions involving patients who do not necessitate an e-Invoice.

If the deposit is refundable, there is no need for an e-Invoice upon its receipt. However, for non-refundable deposits, an e-Invoice must be issued. Additionally, hospitals have the option to use consolidated e-Invoices for buyers who do not need them.

The hospital is permitted to adhere to its existing billing procedures.

The obligation to comply with e-Invoice requirements lies with the issuance process. Consultants and hospitals must adhere to their respective thresholds for e-Invoice implementation.

For e-Invoice purposes, the hospital must issue the “Detailed Bill” as the e-Invoice, which is then submitted to IRBM for validation.

The responsibility lies with the e-commerce platform provider to act as the issuer and generate a self-billed e-Invoice. This e-Invoice is intended to document the income earned by merchants and/or service providers from transactions conducted through the e-commerce platform. The frequency of issuing self-billed e-Invoices can align with the current issuance practices of the e-commerce platform provider.

The e-commerce platform provider must generate an e-Invoice for the charges incurred by the merchant and/or service provider for platform usage. The frequency of e-Invoice issuance can align with the current practices of the e-commerce platform provider.

If the foreign supplier lacks a Tax Identification Number (TIN) or fails to furnish it, the standard TIN “EI00000000030” may be employed as the Supplier’s TIN in a self-billed e-Invoice. For further instructions on issuing self-billed e-Invoices, kindly consult Section 10.4 of the e-Invoice Specific Guideline.

The e-commerce platform provider is prohibited from issuing consolidated e-Invoices to document the income earned by merchants and/or service providers from transactions conducted through the e-commerce platform. Instead, the e-commerce platform provider is required to issue self-billed e-Invoices for this purpose. Please refer to the response provided in Question 2 above for additional information.

The frequency of self-billed e-Invoice issuance may align with the current frequency of issuance by the e-commerce platform.

The e-commerce platform provider is permitted to maintain its existing billing process. If necessary, the platform provider may issue draft or proforma invoices to the merchant and/or service provider. However, only the finalized e-Invoice needs to be submitted to IRBM for validation.

The e-commerce platform provider must issue a refund note e-Invoice to document the reimbursement for returned goods.

Considering that the transaction process, obligations, and categorization (outlined in the e-Invoice data catalog) may vary between e-commerce transactions and those conducted through brick-and-mortar stores, combining them into a consolidated e-Invoice might not be recommended. This approach could potentially lead to increased complexity during future reconciliation processes.

The responsibility lies with the e-commerce platform provider to act as the issuer and generate a self-billed e-Invoice. This e-Invoice is intended to document the income earned by merchants and/or service providers from transactions conducted through the e-commerce platform. The frequency of issuing self-billed e-Invoices can align with the current issuance practices of the e-commerce platform provider.

The e-commerce platform provider must generate an e-Invoice for the charges incurred by the merchant and/or service provider for platform usage. The frequency of e-Invoice issuance can align with the current practices of the e-commerce platform provider.

If the foreign supplier lacks a Tax Identification Number (TIN) or fails to furnish it, the standard TIN “EI00000000030” may be employed as the Supplier’s TIN in a self-billed e-Invoice. For further instructions on issuing self-billed e-Invoices, kindly consult Section 10.4 of the e-Invoice Specific Guideline.

The e-commerce platform provider is prohibited from issuing consolidated e-Invoices to document the income earned by merchants and/or service providers from transactions conducted through the e-commerce platform. Instead, the e-commerce platform provider is required to issue self-billed e-Invoices for this purpose. Please refer to the response provided in Question 2 above for additional information.

The frequency of self-billed e-Invoice issuance may align with the current frequency of issuance by the e-commerce platform.

The e-commerce platform provider is permitted to maintain its existing billing process. If necessary, the platform provider may issue draft or proforma invoices to the merchant and/or service provider. However, only the finalized e-Invoice needs to be submitted to IRBM for validation.

The e-commerce platform provider must issue a refund note e-Invoice to document the reimbursement for returned goods.

Considering that the transaction process, obligations, and categorization (outlined in the e-Invoice data catalog) may vary between e-commerce transactions and those conducted through brick-and-mortar stores, combining them into a consolidated e-Invoice might not be recommended. This approach could potentially lead to increased complexity during future reconciliation processes.

Yes, insurance companies are permitted to use annual premium statements for consolidated e-Invoice purposes in cases where policyholders do not require individual e-Invoices. In such cases, insurance companies will issue a normal statement or bill to the buyer, following current business practices, without submitting it for IRBM’s validation. Insurance companies can aggregate these statements or bills to create and submit a consolidated e-Invoice for IRBM’s validation, following the current issuance period for statements or bills. The submission must be made within seven (7) calendar days after the end of the month in which the statements or bills were issued.

If the first annual premium statement is only available in February/March 2025 and covers the full year premium paid from January 2024 to December 2024, it is acceptable to transmit the entire year’s data in February/March 2025. There is no need to exclude the period from January to July 2024.

The process for issuing e-Invoices should be adhered to as per current procedures. Insurance companies must clearly communicate with customers and guide them on how to request validated e-Invoices within the established framework, such as during the regular premium statement issuance cycle.

As a general rule, the term “Buyer” for e-Invoicing purposes refers to the policyholder. When the buyer requests an e-Invoice, the insurance company is obligated to issue one.

The current process can be maintained with one e-Invoice issued for each insurance policy. For joint policyholders, the principal policyholder who receives the invoice from the insurance company should be listed as the Buyer on the e-Invoice. However, if the other policyholder requests an e-Invoice, the insurance company must issue a separate e-Invoice to that policyholder.

If the e-Invoice for the collection on behalf is to be issued to the insurance company, it must include the collection on behalf. It is important to note that such collections will not be recognized as the insurance company’s income, and the appropriate classification code should be selected by the insurance company. However, if the e-Invoice for the collection on behalf is to be issued directly to the policyholder, the insurance company is not required to include the collection on behalf in their e-Invoice.

Scenario 1: Master policy between the insurance company and intermediary, with end customers as insured persons.

Currently, the intermediary issues an invoice/receipt that records the premium received from the policyholder (i.e., end customers). Consequently, the insurance company issues another invoice to the intermediary for the premium received. Insurance companies may directly deliver the cover note/insurance policy to the customers as insured persons, while the intermediary is listed as the master policyholder.

Scenario 2: Individual policy between the insurance company and the end customer is established. Insurance companies issue individual policies directly to end customers, whether the customers purchased the policy through intermediaries.

In this context, to whom should the e-Invoice be issued?

Here is a rephrased version:

In the specified scenarios, the handling of e-Invoices is as follows:

Scenario 1

Since the primary policy exists between the insurance company and the intermediary, the insurance companies are responsible for issuing e-Invoices to the intermediary rather than directly to end customers. Consequently, the intermediary should issue e-Invoices to end customers for the premiums received. If the intermediary does not issue e-Invoices to end customers for the premiums received, the insurance company should then issue e-Invoices directly to the end customers instead of to the intermediary.

Scenario 2

If the contract is between the insurance company and the end customer as the policyholder (where the intermediary is not the policyholder), the e-Invoice must be issued directly to the policyholder, who is the end customer.

In cases where policy termination includes a refund to the policyholder, an e-Invoice for a refund note must be issued according to the company’s existing billing and invoicing procedures, with the following exceptions:

1. Incorrect payments made by policyholders

2. Overpayments made by policyholders

3. Return of security deposits

Generally, for e-Invoicing purposes, the Buyer is typically the policyholder. However, in cases where the policyholder is a minor, the Buyer’s details should instead reflect those of the parent, guardian, or any other relevant party involved.

Generally, for e-Invoicing, the Buyer is typically the policyholder. If policies are individually issued to each group entity, e-Invoices should be issued to each respective entity. In a single group policy, the e-Invoice would be issued to the master policyholder. However, to accommodate customer requests for separate e-Invoices for each entity under the master group policy, insurance companies may issue separate e-Invoices based on their current business processes.

For e-Invoicing purposes, the Buyer typically refers to the policyholder as a general principle. If the policyholder is the employee, the insurance company should continue issuing the e-Invoice to the employee. It’s important to note that the collection of insurance contributions by employers serves as a settlement mechanism for the insurance policy.

The current procedures can be maintained for e-Invoice purposes.

The e-Invoice treatment should depend on the ownership of the damaged assets:

1. If the insurance company takes ownership of the damaged assets from the policyholder upon compensation claim and then disposes of them, the insurance company must issue an e-Invoice to the workshops or salvage contractors for the disposal.
2. If the policyholder retains ownership of the assets (e.g., company, limited liability partnership, partnership, business conducted by an individual), the policyholder must issue an e-Invoice to the workshops or salvage contractors for the disposal of the damaged assets.
3. If the policyholder is an individual not conducting business, a non-Malaysian individual, a foreign company not operating or established in Malaysia, or a person exempted under Section 1.6.1 of the e-Invoice Guideline, the workshop or salvage contractor must issue a self-billed e-Invoice.

For insurance claims received by Driver A and Driver B from their respective insurance companies, please refer to Question No. 1 under Part C – Claims and Benefit Payments for the appropriate e-Invoice treatment.

Regarding the recoupment of the claim from Driver B’s insurance company to Driver A’s insurance company, Driver B’s insurance company must issue a self-billed e-Invoice to the policyholder (i.e., Driver B), even if the payment is made to Driver A’s insurance company.

Insurance companies are permitted to issue consolidated self-billed e-Invoices for claims and benefit payments to individuals not conducting business.

If an insurance company issues a new e-Invoice for a policy endorsement, no reference to the original invoice (issued before e-Invoicing implementation) or original e-Invoice is necessary.

However, if the insurance company issues a debit note, credit note, or refund note e-Invoice for the policy endorsement, they must complete the “Original e-Invoice Reference Number” field as follows:

– For original invoices issued before e-Invoice implementation: Enter “NA”.
– For original e-Invoices: Enter the relevant IRBM unique identifier number of the original e-Invoices.

When issuing an e-Invoice for the sale of a flight ticket or private air charter, the Buyer’s details should be provided as follows:

a) Individual Purchases: If an individual buys a ticket for personal travel or for another individual who is the passenger, the Buyer’s details should reflect the person who made the purchase.

b) Group Purchases: For multiple tickets in a single booking, the Buyer’s details can be one of the following, based on the Supplier’s preference:

1. The details of the person who made the purchase, for all individual e-Invoices.
2. The details of each passenger within the booking, for their respective individual e-Invoice.

The IRBM acknowledges the difficulty in obtaining personal information from buyers in the aviation industry due to specific data protection regulations. Therefore, IRBM has temporarily allowed Suppliers to use the following details for Buyers of flight tickets or private air charters that do not require an e-Invoice:

i. Buyer’s Name: Suppliers should input “General Public” in the e-Invoice.

ii. Buyer’s Tax Identification Number: Suppliers should input “EI00000000020” in the e-Invoice, regardless of whether the Buyer is local or foreign.

iii. Buyer’s Business Registration Number (BRN): Suppliers should input “NA” in the e-Invoice, regardless of whether the Buyer is an individual or business.

iv. Other Buyer’s Details (Address, Contact Number, SST Registration Number): Suppliers should input “NA” in the e-Invoice.

When an airline operator charges a passenger an excess baggage fee, the operator is responsible for issuing:

i. An e-Invoice (upon request), or

ii. A receipt (if no e-Invoice is requested)

for the transaction completed at the counter. If a receipt is issued

(iii) the airline operator must aggregate these transactions and issue a consolidated e-Invoice within seven (7) days from the end of the month.

The airline operator is responsible for issuing e-Invoices to Buyers as follows:

i. Price Increase: If the new price is higher than the previous flight, an e-Invoice (either an invoice or debit note, as applicable) must be issued for the difference in amount.

ii. Price Reduction: If the price is reduced compared to the previous flight, an e-Invoice (either a credit note or refund note, as applicable) should be issued.

If there is no change in monetary value due to flight cancellations or changes, no additional e-Invoices are required. The airline operator may continue to issue e-Invoices with a nil amount as per current invoicing practices.

The approach to e-Invoicing for the sale of flight-related and non-flight ancillaries by airline operators is outlined as follows:

For Flight-Related Ancillaries:

a. When a flight ticket and related ancillaries are purchased together in one transaction, airlines have two options for e-Invoicing, based on their preference:

1. Issue a single e-Invoice that covers both the flight ticket and the ancillaries.
2. Issue separate e-Invoices for the flight ticket and for the ancillaries.

b. When a flight ticket and related ancillaries are purchased separately, airlines must:

1. Always issue an e-Invoice for the flight ticket.
2. Issue an e-Invoice for the ancillaries upon the buyer’s request or provide a receipt if no e-Invoice is requested.

For non-flight ancillaries:

The obligation to issue an e-Invoice depends on the contractual relationship between the airline and the third-party service provider.

a. If the airline sells non-flight ancillaries as the principal party: a. If the flight ticket and non-flight ancillaries are sold together in one transaction, the airline must:

Issue one e-Invoice detailing both the flight ticket and the non-flight ancillaries,

or

Issue separate e-Invoices for the flight ticket and the non-flight ancillaries.

b. If the flight ticket and non-flight ancillaries are sold separately, the airline must:

1. Always issue an e-Invoice for the flight ticket.
2. Issue an e-Invoice for the non-flight ancillaries upon the buyer’s request or provide a receipt if no e-Invoice is requested.

If the airline acts merely as an agent for the sale of non-flight ancillaries on behalf of a service provider, then it is the service provider’s responsibility to:

Issue an e-Invoice upon the buyer’s request or provide a receipt if no e-Invoice is requested.

When issuing an e-Invoice for the sale of a flight ticket or private air charter, the information of the Buyer should be recorded as follows:

a) If the purchase is made by an individual either for their own travel or on behalf of another individual who is the passenger, the Buyer’s information should be that of the individual who completed the purchase.

b) In the case of group purchases (where multiple tickets are bought in a single transaction), the Buyer’s information can be handled in one of two ways, depending on the preference of the Seller:

i. Use the information of the individual who made the purchase for all the e-Invoices issued for each ticket.

ii. Include the information of each individual passenger from the booking on their respective e-Invoices.

When the collected deposit is refundable, there is no need to issue an e-Invoice upon receiving the security deposit. However, if the deposit is non-refundable, the travel agent must issue an e-Invoice for the amount of the deposit collected. Following this, a separate e-Invoice should be issued for the remaining balance amount.

When a service is rendered by a local tour guide, it is mandatory for the tour guide to issue an e-Invoice to the travel agency for the provided services. Conversely, if a foreign tour guide provides the service, the Malaysian travel agency must generate a self-billed e-Invoice for the transaction. For further information on the process of issuing self-billed e-Invoices, please consult Section 8 of the e-Invoice Specific Guideline.

If a tour package includes a flight ticket, the travel agency must issue separate e-Invoices for each customer, regardless of whether the customer has asked for an e-Invoice or not. However, if the tour package does not include a flight ticket, the travel agency may provide receipts to customers who do not specifically request an e-Invoice. In such cases, the agency is permitted to compile all transactions and submit a consolidated e-Invoice for validation by the IRBM within seven days following the end of the month.

It’s important to note that consolidated e-Invoices cannot be issued for the sale of flight tickets or private air charters.

In the consolidated e-Invoice, financial institutions must enter relevant and suitable descriptions in the “Description of Product or Service” section.

A resident company engaged in banking must issue e-Invoices for operations both within and outside Malaysia.

When customers ask for an e-Invoice, financial institutions must provide one to their clients. This e-Invoice may resemble regular statements or bills and will itemize the customer’s liabilities (such as transaction fees) along with any payments or credits to the customer (for instance, rebates, interest earned on deposits, etc.).

Yes, financial institutions have the permission to generate a consolidated e-Invoice for transactions in cases where customers do not request an e-Invoice, except when the activities or transactions are covered by Section 3.7 of the e-Invoice Specific Guideline.

Financial institutions must generate an e-Invoice for the interest incurred. Nonetheless, issuing an e-Invoice for the repayment of the loan principal is not necessary.

The lending bank is obligated to generate an e-Invoice for the interest it charges to the borrowing bank.

An e-Invoice must be generated for the premium or upfront fee when the premium or fee is non-refundable.

The current method of generating one e-Invoice for an account shared by several parties remains applicable. In cases of joint account ownership, the main account holder, to whom the financial institution sends statements, should be identified as the Buyer on the e-Invoice. However, should any of the other co-owners desire their own e-Invoice, the financial institution is obliged to issue individual e-Invoices to these additional account holders.

Financial institutions must generate self-billed e-Invoices for any fees and charges paid to overseas card network processors and operators. Conversely, domestic card network processors and operators are tasked with issuing e-Invoices for any fees or charges they receive from financial institutions. If domestic card network processors and operators are already providing statements or bills to financial institutions, they are permitted to produce e-Invoices in XML or JSON format. These e-Invoices can detail the amounts due from financial institutions, along with any payments or credits to them, and can be transformed into a visual format resembling traditional statements or bills after validation.

The financial institution must generate a self-billed e-Invoice for the processing or transfer fee to the foreign agent. Following this, if the processing or transfer fee is passed on to the local recipient, the financial institution is obligated to issue an e-Invoice for the said fee.

An e-Invoice must be issued in cases where the upfront payment is non-refundable. However, if the upfront payment is refundable, there is no requirement to issue an e-Invoice at the time the payment is received.

Financial institutions have the permission to generate an e-Invoice in either XML or JSON format. This e-Invoice can detail both the amounts due from cardholders and any payments or credits made to them (for example, cashback redemptions or payouts). Following validation, these e-Invoices can then be transformed into a visual format, resembling traditional statements or bills.

When financial institutions grant reward points to cardholders at no cost, there is no requirement for issuing an e-Invoice or a self-billed e-Invoice. Similarly, for the redemption of goods or services using these reward points, financial institutions are not obligated to issue an e-Invoice or a self-billed e-Invoice to cardholders.

However, should there be any additional fees not covered by the reward points (such as administrative fees or extra costs for goods or services), financial institutions must issue an e-Invoice to the cardholders for these charges.

In cases where these additional charges are already included in the statements or bills provided by financial institutions, they are permitted to issue an e-Invoice in XML or JSON format. This e-Invoice will detail both the charges owed by cardholders (like those additional fees for redemption) and any payments or credits to cardholders. After validation, this e-Invoice can be converted into a visually formatted statement or bill.

Yes, given that financial institutions already issue statements or bills, they are permitted to incorporate adjustments into the next month’s e-Invoice. This e-Invoice, which can be in XML or JSON format, will cover both the amounts due from clients and any payments or credits to clients. After validation, this e-Invoice can then be transformed into a visual format, resembling traditional statements or bills.

There’s no obligation to issue e-Invoices for adjustments made during accounting or auditing processes. Firms can adhere to their existing procedures for managing these adjustments, which include, but are not limited to, the following areas:

• Any gains or losses (whether realised or unrealised)
• Amortisation / Accretion of premium, fee or reserve
• FX gains or losses

Brokers, who are currently providing their clients with statements or bills, have the permission to generate e-Invoices in either XML or JSON format. These e-Invoices can encompass both the amounts due from clients and any payments or credits to clients within the same document. Additionally, brokers can transform the validated e-Invoice into a visually presentable format, such as statements or bills (this could be a contract note, statement, or monthly account statement).

Therefore, brokers are not obligated to reveal the statement or bill reference number in the “Description of Product/Service” section of the consolidated e-Invoice. Nonetheless, when issuing a consolidated e-Invoice, brokers must ensure that the descriptions entered in this field are relevant and suitable.

When brokers levy fees on their investors, it is the broker’s duty to issue:

i. An e-Invoice (when requested); or

ii. A receipt (if an e-Invoice is not requested) to the investors, followed by the issuance of a consolidated e-Invoice.

When a third party provides an e-Invoice or invoice to the broker for collections made on behalf (such as stamp duty, third-party fees, etc.), these collections must be incorporated into the e-Invoice that the broker issues to the investors. The broker must enter the correct classification code for these collections.

Conversely, if the third party sends an e-Invoice or invoice directly to the investors for these collections, there is no need for the broker to include these collections in the e-Invoice issued to the investors.

With the adoption of the e-Invoice system, BMDep must issue an e-Invoice for the fees it charges.

Yes, it is obligatory for Authorised Depository Agents (ADAs) to issue an e-Invoice for the rebates they receive.

The procedures for e-Invoice are as detailed below:

• The client in question must issue an e-Invoice (where applicable) for the foreign dividend income obtained from the distributor of the foreign dividend.

• The nominee company must issue an e-Invoice for the administrative or processing fees it levies on its clients.

The procedures for e-Invoice are as follows:

• The domestic financial institution disbursing the interest must generate an e-Invoice for the account holder. When the interest is paid by an international financial institution, it’s the responsibility of the account holder to create an e-Invoice for the received interest.

• The broker must generate a self-billed e-Invoice for the total amount of interest owed to the clients (that is, before the deduction of handling fees) and issue another e-Invoice specifically for the handling fees applied to its clients.

BMS must generate a refund note e-Invoice for the initial listing fees that are reimbursed to the issuers.

In line with Section 9 of the e-Invoice Specific Guideline, brokers must generate a self-billed e-Invoice for the commission paid to the Commissioned Dealer’s Representative.

BMDep must generate an e-Invoice for the nominee company for the charged CDS fees. Following this, the nominee companies are obligated to issue an e-Invoice to the beneficiaries for the CDS fees that are passed on to them.

With the introduction of e-Invoice, the process for issuing e-Invoices is expected to mirror the existing invoicing arrangement. In instances where the Securities Commission (SC) issues an e-Invoice, invoice, or any other form of documentation for collections conducted on behalf of BMS, these collections need to be reflected in the e-Invoice that BMS issues to brokers. Furthermore, BMS must apply the correct classification code for the aforementioned collection on behalf.

The process for e-Invoice issuance is as follows:

1. For the transaction between UTMC and IUTA, UTMC must generate a self-billed e-Invoice for the dividends paid out to IUTA.
2. For the transaction between IUTA and the end investors, IUTA must generate a self-billed e-Invoice for the dividends passed on to the end investors.

The approach for e-Invoice processing is outlined as follows:

For the Management Fees:

• UTMC must generate an e-Invoice for the management fee charged to the UTF. Subsequently, UTF must issue e-Invoices to the end investors, reflecting their share of the management fee.

For Management Fee Rebates:

• Since rebates are provided directly to the eligible end investors, UTMC must issue either a credit note or refund note e-Invoice to those investors. When creating the credit or refund note e-Invoice, UTMC must include the IRBM Unique Identifier Number from the original e-Invoice that was issued by UTMC to UTF for the management fee. This number should be entered in the “Original e-Invoice Reference Number” field.

The procedures for e-Invoice handling are as follows:

For Management Fees Charged by the Foreign UTF:

• The local Unit Trust Management Company (UTMC) must generate a self-billed e-Invoice for the management fee levied by the foreign UTF.
• The local UTMC must then issue an e-Invoice to the local UTF for the management fee charged by the foreign UTF. Following this, the local UTF is obligated to issue e-Invoices to the end investors, detailing their respective shares of the management fee.

For Management Fee Rebates:

• The local UTMC must create a self-billed credit note e-Invoice for the rebates received.
• Since the rebate is allocated directly to the qualified end investors of the local UTF, the local UTMC must issue either a credit note or refund note e-Invoice to these investors. When creating this e-Invoice, the local UTMC must insert the IRBM Unique Identifier Number from the original e-Invoice, which was issued by the local UTMC to the local UTF for the management fee, into the “Original e-Invoice Reference Number” field.

An e-Invoice does not need to be issued if there are no commission or sales charges resulting from the investment transaction. Nonetheless, UTMC has the option to issue an e-Invoice indicating a ‘Nil’ amount, should they choose to do so.

With the introduction of e-Invoice, UTMC must generate an e-Invoice for PRS end investors detailing the PPA fees that UTMC has charged.