(Tax Update) Types of E-Invoice In Malaysia

01"Boss, How Many Types of E-Invoices in Malaysia? So Confusing!" 🤯

We hear this question a lot from our SME clients. E-invoicing is coming, and many bosses are scratching their heads over the different types. So, let’s break it down in simple English.

There are four types of e-invoices in Malaysia, and each serves a different purpose.

1. Regular e-Invoice

This is the standard invoice issued by a supplier to a buyer after a transaction. It’s required if the buyer asks for it and must include details like the buyer’s name, address, and TIN.

💡 Example: A furniture store sells a dining table and issues an e-invoice to the customer on the spot.

2. Self-Billed e-Invoice

Here’s where it gets tricky. The buyer (not the seller) issues this invoice. This happens when:

• Buying from foreign suppliers who can’t issue Malaysian e-invoices
• Paying agent commissions
• Dealing with e-commerce platforms

💡 Example: A company purchases software from an overseas vendor. Since the foreign supplier can’t issue an e-invoice, the company creates a self-billed e-invoice for record-keeping.

3. Consolidated e-Invoice

This is used when a business sells to the general public (B2C) and no individual customer requests an e-invoice. It’s issued within 7 days after month-end and uses a general TIN (EI00000000010).

💡 Example: A supermarket doesn’t issue e-invoices to each customer but consolidates all sales for the month into one e-invoice.

4. Consolidated Self-Billed e-Invoice

Same concept as a consolidated e-invoice, but here, the buyer (not the seller) issues the invoice. Used for transactions with individuals, interest payments, and insurance claims.

💡 Example: An insurance company issuing monthly payouts to policyholders prepares a consolidated self-billed e-invoice for all payments made.

So Boss, Which One Applies to You?

• If you sell B2B, you’ll mostly deal with regular e-invoices.
• If you buy from overseas, you might need self-billed e-invoices.
• If you sell to the general public, you need a consolidated e-invoice.
• If you process bulk payments to individuals, it’s a consolidated self-billed e-invoice.

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