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E-Invoice Specific Guidelines: A Comprehensive Overview

Published at
E-Invoice Specific Guidelines: A Comprehensive Overview

1. INTRODUCTION

1.1 Inland Revenue Board of Malaysia (IRBM) has issued the e-Invoice Guideline on 21 July 2023.

1.2 The e-Invoice Guideline addresses the scope of implementation of e-Invoice, covering the concept of e-Invoice and step-by-step guidance on the e-Invoice workflow.

1.3 The IRBM has issued e-Invoice Specific Guideline in response to the need for further guidance on specific areas of e-Invoice, aiming to aid taxpayers in gaining a better understanding of certain e-Invoice treatment and ultimately, to successfully implement e-Invoice.

1.4 The appendices to this document form part and parcel of this e-Invoice Specific Guideline. The information provided in the appendices provide additional guidance to taxpayers on how to complete the requirements for issuance of e-Invoice as well as to enhance taxpayers’ understanding on e-Invoice implementation using general and industry-specific examples.

2. OBJECTIVE

This Specific Guideline is to provide further guidance on the issuance of e-Invoice relating to the following areas:

i. Transactions with Buyers

ii. Statements / Bills on a periodic basis

iii. Disbursement and reimbursement

iv. Employment perquisites and benefits

v. Certain expenses incurred by employee on behalf of the employer vi. Self-billed e-Invoice

vii. Transactions which involve payments (whether in monetary form or otherwise) to agents, dealers or distributors

viii. Cross-border transactions

ix. Profit distribution (e.g., dividend distribution) x. Foreign income

xi. Currency exchange rate

xii. E-commerce transactions

xiii. e-Invoice treatment during interim relaxation period

3. TRANSACTIONS WITH BUYERS

3.1 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).

3.2 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.

3.3 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.

3.4 Figure 3.1 provides an overview of invoicing process.

3.5 Scenario 1: Where the Buyer requires an e-Invoice

3.5.1 In relation to a particular transaction, Buyer that requires an e-Invoice would need to make a request by informing the Supplier accordingly.

3.5.2 Upon receiving the request from the Buyer for an e-Invoice, Supplier obtains the Buyer’s details (refer Table 3.1 of this e-Invoice Specific Guideline for further details) required for the issuance of e-Invoice.

3.5.3 In summary, the steps involved for issuance of an e-Invoice to Buyer are as follows:

Step 1: Supplier seek confirmation from Buyer if an e-Invoice is required.

Step 2: If the Buyer confirmed that he / she requires an e-Invoice, the Buyer is required to furnish the Supplier

with the required information to facilitate the issuance of

e-Invoice (refer Table 3.1 of this e-Invoice Specific

Guideline for further details).

Step 3: The Supplier is required to complete the remaining required fields as outlined in Appendices 1 and 2 of

e-Invoice Guideline and proceed to issue an e-Invoice.

The process of issuing an e-Invoice is similar to the

e-Invoice workflow as discussed in Section 2.3 (e-Invoice

model via MyInvois Portal) and Section 2.4 (e-Invoice

model via API) of the e-Invoice Guideline.

Step 4: The validated e-Invoice can be used as the Buyer’s proof of expense, to substantiate a particular transaction for tax purposes.

3.5.4 In facilitating a more efficient e-Invoice issuance process as well as to ease the burden of individuals in providing their Tax Identification Number (TIN) and identification number details, IRBM provides the following concession to individuals:

(a) For Malaysian individuals to provide either:

i. TIN;

ii. MyKad / MyTentera identification number; or

iii. Both TIN and MyKad / MyTentera identification number. (b) For non-Malaysian individuals to provide either: i. TIN; or

ii. Both TIN and passport number / MyPR / MyKAS identification number.

For clarity, (b)(i) refers to the TIN assigned by IRBM. In the event that the non-Malaysian individual does not have a TIN, Supplier may use the general TIN (as listed in Appendix 1 of this e-Invoice Specific Guideline), along with the passport number / MyPR / MyKAS identification number of the said individual.

3.5.5 In summary, the details to be provided by the individual Buyers for the issuance of e-Invoice are as follows:

No 

Data field 

Details to be  

included by  

Supplier in  

e-Invoice

Additional Remarks

Buyer’s Name 

Name of individual  Buyer 

For Malaysian individuals: Full  name as per MyKad / MyTentera 

For non-Malaysian individuals: Full name as per passport / MyPR / MyKAS

Buyer’s TIN 

TIN of individual  Buyer 

For Malaysian individuals 

i. Option 1: TIN only 

ii. Option 2: MyKad / MyTentera identification number only  

iii. Option 3: Both TIN and MyKad / MyTentera identification  

number 

For non-Malaysian individuals  i. Option 1: TIN only  

ii. Option 2: Both TIN and  

passport number / MyPR /  

MyKAS identification number 

For clarity, (i) refers to the TIN  assigned by IRBM. In the event  that the non-Malaysian individual  does not have a TIN, Supplier may  use the general TIN (as listed in  Appendix 1 of this e-Invoice 

Buyer’s  

Registration /  

Identification  

Number /  

Passport Number

Details of  

registration /  

identification  

number / passport  number

No 

Data field 

Details to be  

included by  

Supplier in  

e-Invoice

Additional Remarks

Specific Guideline), along with the  passport / MyPR / MyKAS  identification number of the said  individual.

Buyer’s Address 

Address of  

individual Buyer 

Individual Buyer is required to  provide residential address

Buyer’s Contact  Number 

Telephone number  of individual Buyer

Individual Buyer is required to  provide a contact number 

Buyer’s SST  

Registration  

Number

SST registration  number of  

individual Buyer

Where applicable, individual Buyer  to provide SST registration number  

If individual Buyer is not registered  for SST, Supplier to input “NA

3.5.6 The details to be provided by the individual Shipping Recipient for the issuance of Annexure to the e-Invoice are as follows:

No 

Data field 

Details to be  

included by  

Supplier in  

Annexure to the  e-Invoice

Additional Remarks

Shipping  

Recipient’s 

Name

Name of individual  Shipping Recipient

For Malaysian individuals 

Full name as per MyKad / 

MyTentera 

For non-Malaysian individuals Full name as per passport / MyPR  / MyKAS

Shipping  

Recipient’s 

Address

Address of  

individual Shipping  Recipient 

Individual Shipping Recipient is required to provide residential  address

Shipping  

Recipient’s TIN

TIN of individual  Shipping Recipienti. 

For Malaysian individuals 

Option 1: TIN only 

ii. Option 2: MyKad / MyTentera  identification number only 

iii. Option 3: Both TIN and MyKad /  MyTentera identification number 

For non-Malaysian individuals Option 1: TIN only 

ii. Option 2: Both TIN and passport  number / MyPR / MyKAS 

identification number 

For clarity, (i) refers to the TIN 

Shipping  

Recipient’s  

Registration /  

Identification  

Number / 

Passport  

Number

Details of  

registration /  

i. 

identification  

number / passport  number

No 

Data field 

Details to be  

included by  

Supplier in  

Annexure to the  e-Invoice

Additional Remarks

assigned by IRBM. In the event  that the non-Malaysian individual  does not have a TIN, Supplier may  use the general TIN (as listed in  Appendix 1 of this e-Invoice  Specific Guideline), along with the  passport / MyPR / MyKAS  identification number of the said  individual.

3.5.7 In the event the individual Buyer and/or individual Shipping Recipient (where applicable) provides either TIN or MyKad / MyTentera identification number (instead of both), the Supplier should input the following details for e-Invoice purposes:

No 

Option 

Data field 

Details to be included by  

Supplier in e-Invoice

Option 1 (for  

Malaysian and  non-Malaysian  individuals),  

where the 

Buyer’s / Shipping  Recipient’s TIN

Supplier to input the TIN as  provided by individual Buyer /  individual Shipping Recipient

No 

Option 

Data field 

Details to be included by  

Supplier in e-Invoice

individual Buyer /  individual  

Shipping  

Recipient only  

provides TIN

Buyer’s / Shipping  Recipient's  

Registration /  

Identification  

Number / Passport  Number

Supplier to input “000000000000”  in the e-Invoice

Option 2 (for  

Malaysian  

individuals),  

where the  

individual Buyer /  individual  

Shipping  

Recipient only  

provides MyKad  / MyTentera  

identification  

number

Buyer’s / Shipping  Recipient's TIN

Supplier to input “EI00000000010” in the e-Invoice

Buyer’s / Shipping  Recipient's  

Registration /  

Identification  

Number / Passport  Number

Supplier to input MyKad/  MyTentera identification number  provided by the individual Buyer /  individual Shipping Recipient

Table 3.3 – Details of TIN and identification number / passport number to be included by Supplier for issuance of e-Invoice to individual Buyer / individual Shipping Recipient

Example 1

Mr. Soo (Buyer) spent RM2,500 to buy a smartphone from Global Telco Sdn Bhd (Supplier) and has requested for an e-Invoice to be issued.

Global Telco Sdn Bhd has requested for Mr. Soo’s personal details to proceed with the issuance of e-Invoice. Mr. Soo has provided all the details required (including his MyKad identification number), except his TIN. Global Telco Sdn Bhd is still able to issue an e-Invoice to Mr. Soo despite Mr. Soo’s TIN has not been provided.

Upon receiving the validated e-Invoice, Mr. Soo will be able to use the validated e-Invoice as a proof of expense to substantiate for tax purposes.

Figure 3.2 illustrates an example of visual representation of validated e-Invoice issued by Global Telco Sdn Bhd to Mr. Soo.

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