Updates on the implementation of e-invoicing

Updates on the implementation of e-invoicing

Further to the issuance of the e-Invoice Guideline (Version 1.0) (Guideline) on 21 July 2023 (see Tax Alert No. 13/2023 and Take 5: e-Invoice Guideline: Navigating the future of tax digitalization), HASiL has issued the following: 

a)    e-Invoice Guideline (Version 2.0)

The e-Invoice Guideline (Version 2.0), published on 29 September 2023, replaces the e-Invoice Guideline (Version 1.0). Some key changes were made to the            e-Invoice Guideline in the following areas: 

• Exemption from implementing e-Invoice
  
  
• Rejection or cancellation of e-Invoices
  
  
• e-Invoice transmission methods
  
  
• Data fields

b)    e-Invoice Specific Guideline (Version 1.0)

The e-Invoice Specific Guideline (Version 1.0), published on 29 September 2023, provides further guidance on the following areas:

• Transactions with Buyers
  
  
• Statements/Bills on a periodic basis
  
  
• Disbursement and reimbursement
  
  
• Employment perquisites and benefits
  
  
• Certain expenses incurred by employee on behalf of the employer
  
  
• Self-billed e-Invoice
  
  
• Transactions which involve payments in monetary form to agents, dealers or distributors
  
  
• Cross-border transactions
  
  
• Profit distribution (e.g., dividend distribution)
  
  
• Foreign income
  
  
• Currency exchange rate
  
  
• Application Programming Interface (API) overview
  
  
• Cybersecurity

c)    e-Invoice Catalogue

The e-Invoice Catalogue outlines a list of the codes to be used for the following specific data fields in an e-Invoice:

• Malaysia Standard Industrial Classification (MSIC) Code
  
  
• Types of e-Invoices
  
  
• Invoice Currency Code
  
  
• Frequency of Billing
  
  
• Classification
  
  
• Tax Type
  
  
• Payment Mode
  
  
• Country of Origin

d)    Frequently Asked Questions (FAQs)

The FAQs are divided into three categories:

• General
  
  
• Scope and process
  
  
• Systems, security and data privacy

The FAQs are available at this link.

For more details, please see Special Tax Alert No. 4/2023: Important update - The Inland Revenue Board’s new and updated guidelines on e-Invoices