E-Invoice Accounting and Its Implementation Mechanism

HRDCORP CLAIMABLE COURSES

INTRODUCTION

The application of E-invoice in billings of commercial activities and the capturing of cost in Accounting and for tax purpose as announced by LHDN implemented in phases from Aug., 2024 onwards, is not solely a tax matter of about how much tax to pay or when to do your tax filing. The major part of it is all about your Accounting for the Revenue and Cost of the organization and the Business Operation at large, such as Sales, Purchasing, HRM, IT and all other operating staffs. When to account for the cost and revenue and when to issue e-invoice are all separate matters.

The 6 months grace period given from the mandatory implementation date for the 1st phase is going to be over end January 2025 and unless extended, full implementation is to be complied. Fine between RM200 to RM20,000, or imprisonment for 6 months or both may commence after the grace period. It has also been reported that despite the grace period given, the 1st month of implementation, Aug., 2024, saw more than 20 million e-invoice submitted to the IRBM for validation.

This program is to provide the necessary content of e-invoice mechanism and to equip all Accounting and Other Operational Staffs on the organization’s requirement to implement e-invoice as per LHDN’s requirement for their various business transactions.

The need to know when to issue an E-Invoice to customers to capture the revenue, when to issue self-bill invoice to capture the cost, when suppliers are not required to issue E-invoice but require to issue consolidated e-invoice, etc. are all essential knowledge and skills that all staffs in the organization’s accounting and other departments will need to know and possess.

COURSE REQUIREMENT

• Stable Internet Connection

• Webcam and Earphones

OBJECTIVE

By the end of this program, participants will be able to:

• Understand what actually is E-Invoice and what does it entail

• Gain awareness of what are the latest updates

• Understand the mechanism of E-Invoice

• Application of E-Invoice for different types of Business & Accounting Transactions

• Prepare and get ready for E-Invoice implementation

• Gain guidance on actions to be taken to capture revenue and cost for your business operation and for tax purposes

COURSE OUTLINE

Module 1: Fundamentals

• What is e-Invoice and what does it entail in comparison with current invoicing practice?

• Worldwide development of e-invoice and its implication on tax

• Malaysian implementation threshold and phases and its partial and full mandatory implementation dates

• What to do during the first 6 months grace period

• When to issue e-invoice for the transactions

• E-Invoice processes and steps

• Compulsory and optional information to be disclosed for e-invoice

• Additional compulsory and optional information to be disclosed for: Cross Border Transactions and Drop Shipment

• Scope of Coverage: - (i) Parties, (ii) Documents and (iii) Transactions

• Parties and activities exempted

• When to apply General TIN number and on who

• Impact of e-invoice on business operation after full implementation by IRB

• Scenarios of one party implemented e-invoice and dealing with other parties have not

• Scenario where one party is exempted whereas the other party is not

• Penalties for non-compliance

Module 2: E-Invoice Mechanism

Two transmission mechanism Processes and Steps

• IRB’s MyInvois model (cloud based)

• Application Program Integration (API) model

Salient Points of E-Invoice including:

• E-Invoice creation and submission to IRB for validation

• Application of UTC time (Coordinate Universal Time)

• Error in Validation, Rejections and Cancellation

• Notification of validation, rejections and cancellation by IRBM

• Sharing of e-invoice to customer

• Window time for rejection/cancellation of invoice by buyer

• Storing of e-invoice in IRB’s porter and its dash-board services.

Steps towards Directors role as employer and appointment of representatives of companies to do e-invoice

Module 3: Application of E-invoice for Accounting of Business Transactions

Issuance of e-invoice:

• Individual transaction e-invoice

• Consolidated transactions e-invoice

• Industries where consolidated e-invoice is not allowed

• Self-billed e-invoice for specific situations such as payment of commission, payment of interest, e-commerce, imports, etc.

• Situation where consolidated self-billed is allowed

• Business transactions under periodic basis

E-invoice treatment for:

• Reimbursement and Disbursements with e-invoice and without e-invoice.

• Billing of penalties charges

• Employment perquisite and benefits, etc.

• Employees Claims

• Salary in lieu of notice matters

• Import and export transactions

• Commission payment to agents, dealers and distributors

• Loyalty and Volume Rebates / discounts given to customers

• Interest received from Banks

• Interest charge to employees loan/advances

• Interest payment to Banks, HP companies.

• Sales with trade-ins like car, goldsmith, etc.

• Profit distribution

• Foreign income remit back to Malaysia

• Rental or expenditure incurred from parties exempted from e-invoice

• E-Commerce treatment

• Utility Bills under Landlord’s name

• Consignment Sales – Domestic and Overseas.

• Sending of goods to be kept in overseas warehouses

• Sales of cash vouchers

• Issuance of cash vouchers on target purchase

• Payment to Foreigners who are non-employees

• Sponsorship for company events, like annual dinner for goods and cash.

• Pay for training and allowance for customers’ staffs

• Inter-branch sales

• Advance payment to suppliers

• Received Insurance compensation

• Disposal of total damaged goods after insurance compensation

• Recoup of insurance claims from the fault party’s insurance

• Developer pays legal fees, stamp duties, etc. on behalf of buyers

• Developer pays guarantee rental to property buyers

• Money Lending

Module 4: Readiness for Implementation

• Avenue/Guide for Taxpayers familiarization

• Steps to take – what should you do now: Employees handbook update or development; Gap arising and resolution on the current invoice, D/N and C/N issuance process Vs. the e-invoice requirement processes; Policies and procedures for different basis of e-invoice issuance

• Grants and Tax incentives available for e-invoice implementation for MSME

• Change Management

WHEN & WHERE

10 June 2025 (Tuesday); 9.00 am to 5.00 pm

Remote Online Learning - Zoom

WHO SHOULD ATTEND

Entrepreneurs, Business Owners, Directors, Accountants, Operational Accounting Staff, Company Secretaries, Other Functional Managers and Executives, all other persons who are involved in and/or interested to learn about E-Invoice mechanism

TRAINING INVESTMENT

RM 700 per participant (inclusive of Service Tax, Online Course Materials, E-Certificate of Attendance)

HRD Corp Claimable (SBL-Khas)

REGISTER HERE: http://carriera.com.my/index.php/training-registration-hrdf-sbl-claimable/

DOWNLOAD BROCHURE HERE: https://carriera.com.my/wp-content/uploads/2025/04/E-Invoice-Accounting-and-its-Implementation-Mechanism.pdf