e-Invoicing New Rules

The Income Tax (Issuance of Electronic Invoice) Rules 2024 has been gazetted effective from 1st October. The Rules are generally coherent with the particulars in the e-Invoicing guidelines issued by Malaysian Inland Revenue Board (MIRB), save for a few notable differences. The most significant difference is that the mandatory implementation for companies with annual sales in excess of RM100 million is prescribed as 1st October 2024 (i.e. two months later than the 1st August 2024 date announced earlier).

The timeline in the Rules for other taxpayers is in line with the previous announcements, i.e. 1st January 2025 for companies with annual sales RM25 million to RM100 million, and 1st July 2025 for other taxpayers.

The Rules are accessible here.

Separately, the MIRB has made substantial changes to the e-Invoicing general FAQ this week, providing clarity on the following matters:

(1) Self-billed e-Invoicing (SBEI) treatment for importation of goods involving tripartite transactions (i.e. drop shipment)

(2) SBEI requirements whereby there is timing difference between Customs declaration on importation and vendor invoices, and multiple import declarations relating to a vendor invoice.

(3) Application of e-Invoicing and/or SBEI for transactions involving bonded warehouses and Free Zones.

(4) Details of exemption from e-Invoicing for micro enterprises (below RM150,000 annual revenue).

The full document is accessible here. For businesses involved in import and/or export transactions, it has become clear that harmonisation between supply chain practices and e-Invoicing is vital for a successful implementation. Seek professional help where required to ensure compliance.

Disclaimer: This e-Alert include our opinion and views based on our interpretation based on information available at the time of writing. The information herein is not meant to be exhaustive. Strictly no liability assumed. Kindly seek case-specific consultation prior to any action.