When Must I Issue an e-Invoice in Malaysia Under MyInvois?
Answer:
If you're a Malaysian business or taxpayer under LHDN's MyInvois e-Invoice system, you are generally required to issue an e-Invoice for any transaction that has tax implications — whether for income (sales, services) or certain expenses (especially those involving foreign suppliers).
Situations Where e-Invoice Is Required:
Sales or Services (Income)
- Retail or wholesale sales
- Service income (consulting, legal, freelance, etc.)
- Rental income
- Digital product or subscription sales
- Commission or referral fees
Self-Billed Transactions (Expense)
- Payments to foreign suppliers
- Commission or prize payouts to individuals
- Claims, benefits, or compensation
- Any case where the seller cannot issue their own e-Invoice
When e-Invoice Is Not Required:
Certain non-taxable income types are excluded. Per e-Invoice Guideline, Section 1.6.7, you are not required to issue e-Invoices for:
Exempted Income | Examples |
Employment income | Salaries, bonuses, EPF, SOCSO |
Dividend payments | Shareholder distributions (under single-tier system) |
Alimony or Zakat | Personal religious or family-based payments |
Capital gains (individuals) | Share disposal not related to business |
Certain interest income | When paid to individuals, not businesses |
When to Issue the e-Invoice:
LHDN recommends issuing the e-Invoice at the time of transaction, specifically:
- When goods are delivered
- When services are rendered
- When a deposit or full payment is received
Reference: Specific Guideline v4.1, Section 3.4
What If You Don’t Issue It?
Failing to issue an e-Invoice when required may result in:
- ❌ Rejected expense claims
- ⚠️ Tax non-compliance
- 📑 Incomplete audit documentation
- 🧾 Customer disputes or enforcement issues
Quick Reference Table:
Transaction Type | e-Invoice Required? | Format |
Sale of goods or services | ✅ Yes | Normal e-Invoice |
Rental, subscription, or license income | ✅ Yes | Normal e-Invoice |
Payment to foreign supplier | ✅ Yes | Self-Billed |
Commission/prize payment to individual | ✅ Yes | Self-Billed |
Monthly salary/bonus | ❌ No | Exempt (employment) |
Dividend to shareholder | ❌ No | Exempt (non-trade) |
Still Unsure?
If you're not sure whether your transaction qualifies for e-Invoicing or needs to be self-billed, our team can help.
Chat with our team. We’ll guide you through your industry’s specific requirements.
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