Malaysia's E-Invoice Requirements By Industry

September 17, 2024

General E-Invoice Requirements

Format: E-invoices must be in XML or JSON format, adhering to the UBL 2.1 standard.
Submission: All e-invoices must be submitted to IRBM's MyInvois system for validation.
Mandatory Fields: E-invoices must include supplier/buyer details, invoice number, date, item descriptions, quantities, prices, taxes, and other required information.
Digital Signature: Each e-invoice must be digitally signed by the issuer.
Transmission Methods: Businesses can use the MyInvois Portal (manual) or API integration (automated via GiraffeGuru eInvoice solution).

Insurance and takaful companies:

Premium Collection: E-invoices must be issued to policyholders for premiums collected.
Claims and Benefits: For payouts, insurers should issue self-billed e-invoices to policyholders/beneficiaries.
Consolidated E-invoices: Allowed for transactions where customers don't request individual e-invoices.
Visual Representation: E-invoices can be issued in XML/JSON format and converted to statement/bill format for sharing with customers.
Group Policies: E-invoices should be issued to the group policyholder, with separate e-invoices available to individual members upon request.
Frequency: Align e-invoice issuance with current billing cycles (e.g., monthly, annually).

Banks and financial institutions:

Fees and Charges: E-invoices are required for all fees/charges to customers.
Interest Income/Expense: Can be included on the same e-invoice as fees.
Periodic Statements: Can be used as the visual representation of the e-invoice.
Interbank Transactions: The lending bank should issue an e-invoice for interest charged.
Credit/Debit Cards: Cashbacks and reward point redemptions should be reflected in e-invoices.
Foreign Currency Transactions: Use the appropriate currency exchange rate as per internal policy or regulatory requirements.

Stockbroking:

Contract Notes/Statements: Can be used as the visual format for e-invoices.
Fees: E-invoices should be issued for brokerage fees, clearing fees, and other charges to clients.
Remisiers: For payments to remisiers, brokers should issue self-billed e-invoices.
Corporate Actions: Nominee companies processing corporate actions should issue e-invoices for admin/processing fees.

Unit trusts:

Sales of Units: The Unit Trust Management Company (UTMC) should issue an e-invoice to the investor for sales charges.
Dividend Distributions: The UTMC should issue a self-billed e-invoice to investors.
Management Fees: Require an e-invoice from the UTMC to the fund.
Rebates: Management fee rebates require a credit note e-invoice from the UTMC to eligible investors.
Fund of Funds: For foreign investments, local UTMCs should issue self-billed e-invoices for management fees charged by foreign fund managers.

To ensure compliance:

System Integration: Work with your IT team or vendors to integrate e-invoicing capabilities into your existing systems.
API Implementation: Consider using API integration for automated, high-volume e-invoice submission.
Data Mapping: Ensure your current invoice data can map to all mandatory e-invoice fields.
Digital Signatures: Implement a system for digitally signing e-invoices.
Staff Training: Educate your team on new processes and requirements.
Customer Communication: Inform your clients about the transition to e-invoicing and any changes in documentation they might receive.

MyInvois Portal vs API Integration:

MyInvois Portal: Suitable for low-volume manual entry or batch uploads. Less efficient but accessible to all businesses.
API Integration: Ideal for high-volume, automated submissions. Requires initial setup but offers long-term efficiency and automation at scale. See GiraffeGuru Malaysia eInvoice solution which integrates with Quickbooks and Xero for a demo of this workflow.

Key Mandatory Fields for API E-Invoice Submission:

Supplier and Buyer Information: Name, TIN, registration number, address, contact details
Invoice Details: Number, date, type, currency, total amounts (excluding/including tax)
Line Item Details: Description, quantity, unit price, tax information
Payment Information: Terms, mode, prepayment details (if applicable)
Digital Signature: As per IRBM requirements

Industry-Specific Considerations:

Insurance/Takaful: Clearly differentiate between premiums, claims, and other transactions.
Financial Services: Properly categorize different types of fees and interest.
Stockbroking: Ensure accurate representation of various fees and corporate actions.
Unit Trusts: Clearly distinguish between different types of fees, charges, and distributions.

Compliance Timeline:

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