Lets run through some of the most asked questions about e-Invoicing in Malaysia.
The IRBM has postponed mandatory e-invoicing in Malaysia from June to August 2024. Despite detailed guidelines, businesses may have queries. This article includes FAQs and answers to address concerns
Source: LHDN FAQs
FAQs on the e-invoice
What is an e-invoice?
e-Invoice is a file created in format notified by IRBM, which a related system can automatically process.
What transactions are covered under e-invoicing?
Business to Business (B2B), Business to Customer (B2C), and Business to Government (B2G).
What documents are covered under e-invoices?
Invoices, credit notes, debit notes and refund notes
Is e-invoice applicable only to domestic transactions in Malaysia?
No, e-invoice applies to both domestic and international transactions.
From when should I generate e-invoices?
The IRBM initially intended to implement e-invoicing in phases. However, following the announcement in the 2024 Budget, the mandatory implementation has been postponed. Here’s a comparison between the original and updated e-invoicing timelines for Malaysia:
FAQs on the e-invoice process
What data is to be provided in an e-invoice?
A seller shall issue an e-invoice with 34 mandatory fields and an additional 17 fields based on specific conditions.
Is it mandatory to provide data in e-invoice annexures?
If you raise an e-invoice for certain transactions such as export, import, etc., you must mention the 17 fields
Can I cancel the invoice submitted to IRBM?
Yes, the seller can cancel the e-invoice within 72 hours from generation time.
Shall I issue an e-invoice for disbursements and reimbursements?
You must generate e-invoices for disbursements and reimbursements when you meet certain conditions.
Can I edit an e-invoice on MyInvois Portal after IRBM validates the e-invoice?
No, the seller should cancel the e-invoice and reissue a new e-invoice.
Does the invoice number change once IRBM validates it?
No, there will be no change in the invoice number. However, the seller will get an e-invoice with a Unique Identifier Number once IRBM validates and clears the invoice.
Is there any specific application required to scan the QR code?
No, you can use any device, such as a mobile camera or a QR code scanner.
What does the e-invoice QR code contain?
QR code gives you a link to the validated e-invoice. Further, you can use the link to access the e-invoice via the MyInvois portal.
What e-invoice model will be adopted?
IRBM is developing the Continuous Transaction Control (CTC) Model to validate e-invoices instantly or near-instantly.
Is my invoice data secure when I use an API solution to generate e-invoice?
Yes, API solutions are equipped with network and security monitoring tools and ensure data security and privacy.
FAQs on Malaysia e-invoice authority
What authority oversees e-invoicing in Malaysia?
The Inland Revenue Board of Malaysia (IRBM) is responsible for e-invoice activities.
Will IRBM offer technical guidance for system integration?
IRBM plans to release the SDK and technical guidelines tentatively in November 2023.
Are there engagement sessions conducted by IRBM?
IRBM is conducting engagement sessions with professional bodies, tax practitioners, and stakeholders to assist in implementing e-invoicing in Malaysia.
Whom should we contact for queries or concerns?
Please direct any queries or concerns to myinvois@hasil.gov.my.
What security measures will IRBM implement to safeguard taxpayer invoice data in the e-invoicing process?
IRBM will ensure that the MyInvois System complies with and is certified for ISO/IEC 27001 Information Security Management System (ISMS) and ISO 22301 Business Continuity Management System (BCMS) audits.
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