What is QnExplains e-Invoice?




QnExplains eInvoice

QnExplains eInvoice is a curated series that delves into the world of e-invoice, offering you a deeper understanding of the processes, best practices and the latest trends. Our aim is to empower you with knowledge that will simplify your e-invoice journey and help you navigate the landscape with confidence.

Question : I want to cancel the validated e-invoice that I issued. Can I still do that ?
Yes, there is a 72-hour timeframe for the e-Invoice to be cancelled by the supplier. If not canceled or rejected within this timeframe, no further cancellation is allowed. Instead, any necessary adjustments must be made by issuing a new e-Invoice, like a credit note, debit note, or refund note.

Once an e-Invoice is validated by IRBM, both the Supplier and Buyer can cancel or reject it within a specific timeframe:

Buyer's Rejection :
The Buyer can request rejection via API within 72 hours in case of errors.
The rejection request should include the unique identifier and the reason.
Upon request, the Supplier receives a notification.
If the Supplier agrees, they cancel the e-Invoice within 72 hours.
If the Supplier disagrees or doesn't act, no cancellation is allowed after 72 hours, and a new e-Invoice is required.

Supplier's Cancellation :

The Supplier can cancel the e-Invoice within 72 hours via API if errors are detected.
A notification is sent to the Buyer, and the Supplier issues a new e-Invoice if necessary.

Source: E-Invoice Guideline Inland Revenue Board of Malaysia (Date of Publication: 28 October 2023)
Question : What should I do if the buyer does not require an e-Invoice?
If the buyer doesn't need an e-Invoice, here's what you can do:

1. Just issue a regular receipt/bill/invoice as you normally would. No need to send these documents for IRBM's validation.

2. If you have multiple transactions, you can group them monthly and submit a consolidated e-Invoice to IRBM within seven days after the month-end.

3. You can choose to show each transaction separately or combine them into a single line item in the consolidated e-Invoice. In accordance with Section 3.7.2 of the e-Invoice Specific Guideline by the Inland Revenue Board of Malaysia, certain industries are prohibited from issuing consolidated e-Invoices and are mandated to generate individual invoices for each transaction.

These industries include :

Automotive : Sale of any motor vehicle
Note : "Motor vehicle" encompasses vehicles of any description, self-propelled and designed or adapted for use on roads, including trailers.

Aviation : Sale of flight tickets, Private charter

Luxury Goods and Jewellery : Detailed information will be provided in due course

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

Wholesalers and Retailers of Construction Materials : Sale of construction materials, regardless of the volume sold
Note : "Construction material" is defined as any type, size, and nature of material used for construction purposes under the Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994, whether manufactured locally or imported.

Licensed Betting and Gaming : Payout to winners for all betting and gaming activities
Note : Payouts to winners in casinos and from gaming machines are exempted from e-Invoice until further notice.

Payment to Agents/Dealers/Distributors : Payments made to agents, dealers, or distributors
Note : As per Section 83A(4) of the Income Tax Act 1967, "agent, dealer, or distributor" refers to any person authorized by a company to act in such capacity, receiving payments from the company arising from sales, transactions, or schemes carried out in that role.

Source: E-Invoice Guideline Inland Revenue Board of Malaysia (Date of Publication: 28 October 2023)

Question : Is it okay to provide an e-Invoice if my buyer requests it, but not on the same day they made the purchase?
YES, as long as it falls within the same month. This timeframe helps the supplier include the receipt in a consolidated e-Invoice. Buyers are encouraged to request e-Invoices soon after receiving receipts, and suppliers should process these requests promptly for validation.

Source: E-Invoice Guideline Inland Revenue Board of Malaysia (Date of Publication: 28 October 2023)