In today’s fast-paced world, keeping your transactions running smoothly is key to great business operations and solid financial records. Whether you’re in digital payments, financial services, healthcare, insurance, stockbroking, or telecommunications, issuing statements or bills for multiple transactions over time is a common practice. As you can tell, e-Invoices really do simplify things!
Making The Switch to e-Invoices
As you dive into e-Invoicing, it’s important to see how this shift changes how you handle statements or bills. Traditionally, suppliers combined amounts owed, adjustments, and payments in these periodic statements. It’s all about issuing an e-Invoice for items listed in those statements or bills, providing clear proof of expenses.
Consolidating Transactions into e-Invoices
To minimize business disruptions, the Inland Revenue Board of Malaysia allows suppliers issuing periodic statements or bills in XML or JSON formats. Submit these formats to IRBM for validation, and then convert them into visual statements or bills for buyers. The primary focus of these e-Invoices is the income and expense of the supplier.
Suppliers can submit e-Invoices according to their respective issuance frequencies, such as monthly, bi-monthly, quarterly, bi-annually, or annually. This flexibility ensures that businesses can maintain their existing billing cycles while complying with e-Invoicing requirements.
What If Buyers Don’t Need e-Invoices?
No worries! In scenarios where buyers do not require e-Invoices, suppliers can continue their current practice of issuing regular statements or bills. However, suppliers must also create and submit a consolidated e-Invoice to IRBM for validation within seven calendar days after the end of the billing month. The supplier uses this consolidated e-Invoice to prove their income and expense and does not need to share it with the buyer.
Easy Steps for Issuing a Consolidated e-Invoice
Here’s how to handle it:
Step 1: Seek Confirmation from Buyer:
Confirm with the buyer whether they require an e-Invoice.
Step 2: Issue Statement/Bill:
Continue issuing statements or bills as usual if the buyer confirms that they do not need an e-Invoice.
Step 3: Aggregate Statements/Bills:
After the billing month ends, retrieve all issued statements or bills and aggregate them.
Step 4: Create and Submit Consolidated e-Invoice:
Within seven days after the billing month, create a consolidated e-Invoice and submit it to IRBM for validation.
Once IRBM validates the consolidated e-Invoice, they will notify only the supplier. The buyer will not receive any notification, and no request for rejection from the buyer is expected.
Need a hand with creating your consolidated e-Invoice? Reach out to us today!
Why e-Invoicing Rocks
A validated e-Invoice is your go-to proof of income and expense, making financial reporting easier. Though the switch might seem a bit daunting, e-Invoicing brings better transparency, less paperwork, and helps you stay on top of tax regulations.
Joining the e-Invoicing Revolution in Malaysia
e-Invoicing is a big leap towards modernizing how we handle business transactions. By getting the hang of these new requirements and enjoying the benefits, your business will transition smoothly, operate efficiently, and stay compliant with the latest standards.