e-Invoicing: SDK & Updates
Gong Xi Fa Cai!
As we usher into the Lunar New Year, the Inland Revenue Board of Malaysia (IRBM) has published the Software Development Kit (SDK) for e-Invoicing, which is accessible here.
Incidentally, changes have also been made to IRBM’s general and specific guidelines. The key updates include:
- 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.
- 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).
- Self-billed e-Invoices do not qualify for consolidation approach.
- 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.
- 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.
- 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).
- 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).
- Further guidance on self-billed e-Invoices for e-commerce transactions.
Click here to download the updated guidelines for full details.
For more insights on the updates and impact on businesses, join our well-timed flagship event next week Thursday, 22nd February to hear from experts from IRBM/LHDN, MDEC and TRATAX. More information about this HRDC-subsidised event is available here.
With just 5.5 months left for the first cohort of mandatory implementation on 1st August 2024, we continuously provide consultancy, guidance, and support for industry players. We reiterate that the implementation of e-Invoicing should not be misunderstood to be a pure IT or system change.
With our experience and track record, we provide valuable insights for a holistic whole-entity approach to avoid compliance oversights. For more information about our consulting services, do not hesitate to reach out to us at corp@tratax.my.
Wishing you prosperity and success in the Year of the Dragon