Enhancements to e-Invoice Issuance and Validation Processes

The recent updates to the e-Invoice guidelines aim to streamline and standardize the issuance and validation processes, ensuring accuracy, efficiency, and compliance with relevant tax legislation. Here are some key highlights:

Timing of Issuance

• For imported goods, the e-Invoice must be issued by the end of the month following the month in which customs clearance is obtained.
• For imported services, the e-Invoice must be issued by the end of the month following the month in which payment is made by the Malaysian purchaser or when the foreign supplier issues an invoice, whichever is earlier.

Currency Exchange Rate

Suppliers are now required to provide currency exchange rates if the e-Invoice requires conversion into RM-equivalent. For self-billed e-Invoices for importation of goods, taxpayers can use their internal currency exchange rate.

Ecommerce Transactions

• E-commerce platform providers assume the role of suppliers when issuing e-Invoices to purchasers.
• When issuing self-billed e-Invoices to merchants or service providers, these platforms do not require supplier information.

Portal Changes and API Integration

Updates have been made to the MyInvois Portal functionalities, enhancing its capabilities for managing and validating e-Invoices. Clarifications on API integration have also been provided, emphasizing the importance of integrating APIs correctly to facilitate smooth data exchange between systems.

Cross-Border Transactions and Buyer’s Details

The guidelines offer insights into transactional scenarios involving cross-border transactions, including self-billed e-Invoices and ecommerce transactions. Clarifications on buyer details have been provided, highlighting the importance of accurate information for tax reporting purposes.

Periodic Statements or Bills and Self-Billed E-Invoices

The guidelines clarify when periodic statements or bills can be recorded in a statement, focusing on the frequency and timing of such transactions. Clarifications have also been provided on self-billed e-Invoices, including who can issue them (e.g., ecommerce platforms to merchants or service providers) and when they must be issued.

Conclusion

These revisions aim to ensure that businesses comply with tax legislation and contribute to a more robust and transparent tax ecosystem in Malaysia. By understanding the updated guidelines, taxpayers can better navigate e-Invoice issuance and validation processes, streamlining their operations and reducing compliance risks.