As Malaysia adopts more digital standards, LHDN (Inland Revenue Board of Malaysia) has introduced structured guidelines for e-invoicing Malaysia, specifying distinct e-invoicing timelines for different types of e-invoices. Compliance with these deadlines is crucial for businesses to avoid potential penalties and ensure seamless operations.
This guide provides an overview of various e-invoices categories, their usage, and the issuance timelines required by LHDN.
1. e-invoicing Timeline for Standard e-invoice (普通交易)
- Usage: Applicable for standard transactions in regular business operations.
- Issuance Timing: LHDN does not mandate a strict issuance timeline for standard e-invoices, allowing businesses to follow their typical invoicing cycles. This flexibility suits businesses with straightforward sales transactions.
- Example: Businesses can issue invoices monthly, weekly, or quarterly based on their operational models without any additional restrictions.
2. e-invoicing Timeline for Consolidated e-invoice (合并发票)
- Usage: Combines multiple transactions into a single e-invoice, ideal for businesses with high transaction volumes.
- Issuance Timing: Consolidated e-invoices should be issued within 7 days after the end of each month. This allows companies to simplify the billing process by consolidating multiple sales into a single document.
- Example: All transactions completed in October can be consolidated, and the e-invoice must be generated by November 7.
3. e-invoicing Timeline for Self-Billed e-invoice for Products (自开发票 – 产品)
- Usage: Commonly used when the buyer generates invoices on behalf of the supplier, often seen in situations like drop shipping or import transactions.
- Issuance Timing:
- For Imported Products: After customs clearance, the invoice must be issued before the end of the following month.
- For Drop Shipment Models: If no customs clearance is required, the invoice should be issued upon receiving the supplier’s invoice.
- Examples:
- Example 1: If customs clearance occurs on September 15, the e-invoice should be issued before October 31.
- Example 2: For direct shipments without customs clearance, the invoice is generated once the supplier’s invoice is received, ensuring the timeline aligns with the shipment process.
4. e-invoicing Timeline for Self-Billed e-invoice for Services (自开发票 – 服务)
- Usage: Self-billed invoices for services, often generated based on payment schedules or upon receiving an invoice from a foreign supplier.
- Issuance Timing:
- Upon Payment to Supplier: The invoice should be issued before the end of the following month.
- Upon Receiving Foreign Supplier’s Invoice: The deadline is also the end of the following month or earlier based on transaction requirements.
- Examples:
- Example 1: If payment to the supplier is made on September 15, the e-invoice must be generated by September 30.
- Example 2: For services rendered by a foreign supplier, upon receiving their invoice by September 15, the self-billed e-invoice should be issued by October 31.
5. e-invoicing Timeline for Consolidated Self-Billed e-invoice (合并自开发票)
- Usage: This invoice aggregates multiple self-billed transactions, providing a consolidated view of all self-billed invoices over a month.
- Issuance Timing: The consolidated self-billed e-invoice should be issued within 7 days after the end of each month.
- Example: For all self-billed invoices generated in September, a consolidated e-invoice must be issued by October 7.
6. e-invoicing Timeline for Foreign Income (外国收入发票)
- Usage: Applicable for income received from foreign entities, such as royalties, interest, or dividends paid to Malaysian taxpayers.
- Issuance Timing: The e-invoice for foreign income should be issued before the end of the month following the income receipt.
- Example:
- August 25: A Malaysian taxpayer receives income from a foreign company.
- September 30: The e-invoice must be issued by this date to comply with LHDN’s foreign income reporting requirements.
Practical Examples of e-invoicing Timeline Scenarios
To illustrate how these guidelines work, let’s go over a few practical examples:
- Product Supply Chain:
- August 12: A supplier delivers 100 units to a buyer.
- August 15: 5 defective units are returned.
- August 17: A consolidated e-invoice is generated for the remaining 95 units.
- Vehicle Repair Services:
- August 12: A customer’s car is sent to a repair shop.
- August 15: Repairs are completed, and the e-invoice is generated.
- August 17: The customer collects the vehicle and pays based on the issued e-invoices.
- Monthly Consolidated Billing:
- October 31: All bills and receipts for October are recorded.
- November 7: A consolidated e-invoice is generated within the required 7-day post-month-end window.
- Import Transaction:
- August 25: The company receives the supplier’s invoice.
- September 15: Customs clearance is completed.
- October 31: Self-billed e-invoice is issued to align with LHDN’s requirements for imported products.
Wrapping Up Malaysia e invoice Transaction Types & e-invoicing Timelines
e-invoicing Malaysia can significantly simplify tax compliance and financial management for businesses. By following LHDN’s specific timelines for different types of invoices, Malaysian businesses can ensure they meet regulatory requirements without disruption. Each category has a tailored issuance timeline, providing clarity and flexibility based on transaction types.
Explore the Best e-invoicing Software Malaysia – JomeInvoice
JomeInvoice Top 3 e-invoicing Software Malaysia
When it comes to integrating e-invoicing software solutions for both small and large enterprise Malaysia, JomeInvoice has quickly become a standout choice, positioning itself among the Top 3 middleware as e-invoicing platforms in the country. With its user-friendly features and robust system compatibility, it’s no surprise why many businesses are turning to JomeInvoice for a seamless transition to the LHDN’s e-invoicing compliance.
Why JomeInvoice is the Best e-invoicing Software Provider for SMEs and Large Enterprise Malaysia:
JomeInvoice stands out as the most user-friendly and comprehensive e-invoicing software solution, offering the perfect balance of flexibility, compliance, and support for both SMEs and large enterprise Malaysia. Whether you are transitioning into the LHDN e-invoicing mandate or looking to streamline your current invoicing process, JomeInvoice provides everything you need—from free trials to ongoing updates and local support.
- Flexible System Compatibility
JomeInvoice offers seamless integration with popular systems such as SAP ECC6, S4 Hana, Sage300, MS365, Netsuite, Odoo, Xero & etc. This flexibility makes it ideal for businesses of all sizes—whether you’re an SME or a large enterprise Malaysia, JomeInvoice adapts to your current operations without a hitch. - Full Compliance with LHDN e-Invoicing Regulations
Compliance is key, and JomeInvoice ensures that your business meets all LHDN e-invoicing guidelines. ISO-certified and fully PDPA-compliant, JomeInvoice offers a secure, worry-free invoicing process that keeps you aligned with Malaysia’s regulatory standards. - 3-Month Free Subscription
JomeInvoice gives new users the opportunity to explore its full range of features at no cost for the first three months. This trial period is especially beneficial for SMEs looking to evaluate the platform before committing, with dedicated support from their expert Malaysian team included. - Trusted by Leading Businesses
Over 60+ major companies, including those in Phase 1 of Malaysia e-invoicing compliance, rely on JomeInvoice for their invoicing needs. The platform is proven to handle large-scale, complex transactions seamlessly, making it a trusted choice across industries. - Free Upgrades, Training, and Dedicated Support
JomeInvoice keeps your business up to date with automatic upgrades that maintain LHDN compliance. Plus, free training and access to a dedicated Malaysian support team ensure your staff can easily adapt to the platform. With cloud server capabilities, you’ll also benefit from secure, flexible invoicing solutions. - Backed by a Listed Company
JomeInvoice is not just reliable but also backed by a publicly listed company on Bursa Malaysia. This adds an extra layer of trust and assurance for businesses looking to invest in long-term solutions.
Ready to streamline your e-invoicing processes?
Contact JomeInvoice today and take advantage of the 3-month free subscription! Our dedicated team is ready to help your business stay ahead with compliance and efficiency.
Contact JomeInvoice Sdn Bhd:
- Address:
Level 38, MYEG Tower, Empire City Damansara, Jalan PJU 8, Damansara Perdana, 47820 Petaling Jaya, Selangor
D-04-07, Plaza Bukit Jalil (Aurora Place), No. 1, Persiaran Jalil 1, Bandar Bukit Jalil, 57000 Kuala Lumpur - Phone: +6016-732 0163
- Social Media:
LinkedIn | Facebook
Don’t wait—schedule a free e-invoice service consultation today and see why JomeInvoice is the top choice for businesses nationwide!