Currently, businesses (Suppliers) will issue a receipt / bill / invoice in hardcopy and/or softcopy (e.g., via e-mail) to customers (Buyers) to record a transaction (e.g., sale of products or provision of services to Buyers for personal consumption). Upon implementation of e-Invoice, Suppliers are required to issue e-Invoice for all of its transactions. However, certain Buyers, particularly customers and certain businesses, may not require an e-Invoice as proof of expense.
Consolidation of e-Invoice
To assist the Suppliers in complying with e-Invoice requirements and to reduce the burden to both Suppliers and Buyers, the IRBM allows the Suppliers to consolidate the transactions with Buyers (who do not require an e-Invoice) into a consolidated e-Invoice on a monthly basis and submit a consolidated e-Invoice to IRBM, within seven (7) calendar days after the month end. For consolidated e-Invoices, the IRBM allows the Suppliers to adopt one (or a combination) of the following methods:
- The summary of each receipt is presented as separate line items in the consolidated e-Invoice
- The list of receipts (in a continuous receipt number) is presented as line items (i.e., where there is a break of the receipt number chain, the next chain shall be included as a new line item)
- Branch(es) or location(s) to submit consolidated e-Invoice, adopting either (1) or (2) above for the receipts issued by the branch(es) or location(s)
Consolidation of Self-Billed e-Invoice
Consolidation does not apply to self-billed e-Invoice, except for the following self-billed circumstances:
- transactions with individuals (who are not conducting a business)
- interest payment to public at large (regardless businesses or individuals)
- claim, compensation or benefit payments from the insurance business of an insurer to individuals (who are not conducting a business)
Similar to consolidated e-Invoice, Supplier must submit consolidated self-billed e-Invoice to IRBM on a monthly basis, within seven (7) calendar days after the month end.
Consolidation of e-Invoice Not Allowed for Certain Activities
For the purposes of e-Invoice, taxpayers undertaking certain activities or transactions are required to issue e-Invoice for each transaction with Buyers and will not be allowed to issue consolidated e-Invoice. Currently, the activities or transactions of industries where e-Invoice is required to be issued for each transaction are:-
- Automotive (Sale of any motor vehicle)
- Aviation (Sale of flight ticket & Private charter)
- Luxury goods and jewellery (Details will be released in due course)
- Construction (Construction contractor undertaking construction contract)
- Wholesalers and retailers of construction materials
- Payment to agents / dealers / distributors
- Licensed betting and gaming