How-02: How does e-invoicing work?

• Transactions With Buyers

• No Consolidation Allowed

• Periodic Statements or Bills

Transactions with buyers

• Buyer Requires e-Invoice:

Suppliers must issue e-Invoices upon request, collecting buyer details (e.g., TIN, identification number).

• Buyer Does Not Require e-Invoice:

Suppliers can issue normal receipts and consolidate transactions into a monthly e-Invoice.

• Consolidated e-Invoice:

Suppliers can aggregate transactions for buyers who do not require e-Invoices, with specific limitations on file size and number of invoices per submission.

• Self-Billed e-Invoice:

Certain transactions (e.g., payments to agents, foreign suppliers) require the buyer to issue a self-billed e-Invoice.

Summary of Activities Requiring Individual e-Invoices:

(No Consolidation Allowed)

o Automotive:

Sale of any motor vehicle (includes vehicles designed for road use and trailers).

o Aviation:

Sale of flight tickets and private charters.

o Luxury Goods and Jewellery:

Details are pending. Until further notice, taxpayers can issue consolidated e-Invoices if buyers do not request e-Invoices.

o Construction:

Construction contractors undertaking construction contracts as defined in the Income Tax (Construction Contracts) Regulations 2007.

o Wholesalers and Retailers of Construction Materials:

Sale of construction materials, regardless of volume sold (includes all types of materials used in construction as per the Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994).

o Licensed Betting and Gaming:

Pay-out to winners for all betting and gaming activities (exemptions apply to casino pay-outs and gaming machine pay-outs until further notice).

o Payment to Agents/Dealers/Distributors:

Payments made to agents, dealers, or distributors as per Section 83A(4) of the Income Tax Act 1967.

Remarks:

- - For luxury goods and jewellery, consolidated e-Invoices are temporarily allowed until further details are released.
  - Certain exemptions apply to specific gaming pay-outs (e.g., casinos and gaming machines).

Table 3.6 Summary:

- - Table 3.6 – Activities that require e-Invoice to be issued for each transaction and consolidated e-Invoice would not be allowed

Statements or Bills on a Periodic Basis

- - Businesses that issue periodic statements (e.g., monthly bills) can convert these into e-Invoices in XML or JSON format.
  - Suppliers can issue consolidated e-Invoices for buyers who do not require individual e-Invoices.

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