When a sale or transaction is concluded, an e-Invoice is issued by Supplier to recognise income of the Supplier (proof of income) and as a record for purchases made / spending by Buyer (proof of expense). However, there are certain circumstances where another party (other than the Supplier) will be required to issue a self-billed e-Invoice.
For e-Invoice purposes, Buyer shall issue self-billed e-Invoices for the following transactions:
- Payment to agents, dealers, distributors, etc.
- Goods sold or services rendered by foreign suppliers
- Profit distribution (e.g., dividend distribution)
- Electronic commerce (“e-commerce”)
- Transactions with individuals who are not conducting a business (applicable only if the other self-billed circumstances are not applicable)
- Interest payment, except:
– Businesses (e.g., financial institutions, etc.) that charge interest to public at large, interest payment made by employee to employer, interest payment made by foreign payor to Malaysian taxpayers - Claim, compensation or benefit payments from the insurance business of an insurer
- Pay-out to all betting and gaming winners
Where a Buyer is required to issue a self-billed e-Invoice, the Buyer will assume the role of the Supplier to be the issuer of e-Invoice and submits it to IRBM for validation. Upon validation, Buyer would be able to use the validated e-Invoice as a proof of expense for tax purposes. As such, the other party is no longer required to issue an e-Invoice where a self-billed e-Invoice has been issued for the particular transaction.
As the Buyer is required to assume the role of Supplier and issue self-billed e-Invoice, the Buyer is obliged to share validated self-billed e-Invoice with the Supplier upon validation. For the purposes of self-billed e-Invoice, the parties of the e-Invoice are as follows:
| Transaction | Supplier |
Buyer (assumes the role of Supplier to issue self-billed e-Invoice) |
|---|---|---|
| Payment to agents, dealers, distributors, etc | Agents, dealers, distributors, etc. | Taxpayer that makes the payment |
| Goods sold or services rendered by foreign suppliers | Foreign Seller | Malaysian Purchaser |
| Profit distribution (e.g., dividend distribution) | Recipient of the distribution | Taxpayer that makes the distribution |
| e-Commerce | Merchant, service providers (e.g., driver, rider) | e-Commerce / Intermediary platform |
| Transactions with individuals who are not conducting a business | Individual not conducting a business | Person transacting with the individual not conducting a business |
| Interest payment | Recipient of interest payment | Taxpayer that makes the interest payment |
| Claim, compensation or benefit payments from the insurance business of an insurer | Policyholder / Beneficiary | Insurer |
| Pay-out to all betting and gaming winners | Recipient of the pay-out | Licensed betting and gaming provider |
In facilitating a more efficient e-Invoice issuance process as well as to ease the burden of individual Suppliers in providing TIN and identification number details, IRBM provides a concession to individual Suppliers. The information required to be included in the self-billed e-Invoice are:-
- Supplier’s Name
- Supplier’s TIN
- Supplier’s Registration / Identification Number / Passport Number : If TIN is not available, input “EI00000000030” for Foreign Agent / Dealer / Distributor. If business registration number is not available, input “NA”)
- Supplier’s Address
- Supplier’s Contact Number
- Supplier’s SST Registration Number : Input “NA” if such information is not applicable or not available)
- Supplier’s Malaysia Standard Industrial Classification (MSIC code) – Input “00000” if such information is not available)
- Supplier’s Business Activity Description – Input “NA” if such information is not available)
- Classification: Input a 3-digit integer (e.g., “000” to “999”), in accordance with the catalogue set by IRBM
- e-Invoice Code / Number
Frequently Asked Questions
e-Invoice Issuance for Income from Letting of Real Property
- e-Invoice is required to be issued to the tenant if taxpayer (owner of property) is conducting the letting of real property activity as a business source.
- For tenant (business taxpayer) who pay the letting of real property transaction with the individual owner who does not conducting a business, the tenant is required to issue self-billed e-Invoice to record the expenses.
- No e-Invoice is required for letting of real property transaction between individual (owner & tenant) who does not conduct a business.