E-Invoicing: Malaysia to Enforce Starting from June 2024

Tax Identification Number, also known as Nombor Pengenalan Cukai. It is a unique number assigned to individuals and entities registered as taxpayers with IRBM. The TIN number is used by the IRBM to identify taxpayers and track their tax records. It is also utilized by the IRBM to monitor taxpayer compliance and detect tax evasion.

Type of interoperable e-invoicing framework that is most widely used, with more than 20 countries already adopting it, including Singapore, Australia, Japan, and many countries in Europe.

1) Proof of income: E-invoicing will be issued by the taxpayer when a sale or other transaction is made to recognize income.
2) Proof of expenses: E-invoicing issued by a supplier should be in place as evidence to support taxpayers’ expenses, such as purchase of goods and services, payment of business expenses, return of goods and discounts given. For purchases of goods or services from a foreign supplier, the IRBM states that the Malaysian party (the purchaser) will need to issue a self e-invoice to document such expense incurred. This is because foreign suppliers do not issue e-invoices under the MyInvois Portal and require the Malaysian taxpayer to issue a self e-invoice instead.

1) General Information: Including invoice number, e-Invoicing type, e-Invoicing purpose, e-Invoicing date (current date).
2) Supplier & Customer Information: Including the supplier and customer’s TIN, name, address, email address, 5-digit MSIC code, MSIC description, website, contact person, and contact number, company registration number/individual MyKad number/passport, SST registration number, currency, exchange rate.
3) Item Information: Including the description, quantity, unit of measurement (UoM), unit price, discount rate, discount amount, tax type, tax code, tax rate, and tax amount, tariff code, subtotal, total excluding tax, total including tax for each item on the invoice.
4) Validation Information: Including the IRBM Unique Identifier Number, validation date and time, and validation status of the invoice.
5) Digital Certificates / Signature: Digital Certificates will be issued to taxpayers to enable them to attach digital signatures to e-Invoices. The digital signature will verify that the submitted e-Invoice data originates from a specific taxpayer.
6) Additional Information (Optional): May include payment mode, supplier bank account, payment terms, payment amount, payment date, payment reference number, bill reference number, and other relevant information.

Businesses are allowed to adjust their e-invoices within 72 hours of issuing the original invoice. This grace period can be used to rectify any errors in the invoice. Here is a more detailed explanation of the 72-hours e-Invoicing grace period:
1) Businesses can reject or request cancellation of an e-invoice within 72 hours of issuing the original invoice.
2) After this period, modifications to e-invoices are not allowed.
3) If any changes are required after 72 hours, businesses must issue a new invoice, debit note, credit note, or refund.
4) It is important to maintain clear records of these adjustments and follow the regulations to ensure compliance with IRBM’s guidelines.