Who: Who is involved in e-invoicing?

Suppliers, buyers, and the Inland Revenue Board (LHDN).

Scope:

e-Invoice covers typical transaction types, including Business-to-Business (B2B), Business-to-Consumer (B2C), and Business-to-Government (B2G). The e-Invoice flow for B2G transactions is similar to B2B.

Exemptions:

Certain entities (e.g., foreign diplomatic offices, individuals not conducting business, and taxpayers with annual turnover < RM150,000) are exempt from issuing e-Invoices.

Suppliers' Obligations:

Suppliers providing goods or services to exempted persons must still issue e-Invoices, following the implementation timeline.

For transactions with foreign diplomatic offices, suppliers may replace buyer details with information from Table 3.5 of the e-Invoice Specific Guideline.

Ownership Entities:

Entities (e.g., companies, limited liability partnerships) owned by exempted persons are not exempt and must implement e-Invoices as per the timeline.

Voluntary Implementation:

Exempted persons are encouraged to adopt e-Invoicing to support the government’s digital initiatives.

Key Takeaways:

Certain entities and individuals are exempt from issuing e-Invoices, but suppliers to these entities must still comply.
Exempted persons can use traditional receipts for tax purposes.
The exemptions are subject to periodic review and may change over time.

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