E-Invoice – Compliance Requirements for Business Transactions to avoid Pitf

HRDCORP CLAIMABLE COURSES

INTRODUCTION

The application of e-invoicing for documenting commercial activities for tax purposes, as announced by LHDN and implemented in phases starting from August 2024, is not solely a tax matter concerning how much tax to pay or when to file returns. More importantly, it significantly impacts how organizations account for Revenue and Costs, affecting core business operations such as Sales, Purchasing, HRM, IT, and all other Business Operations.

The third phase of implementation for organizations with revenue above RM5.0 million has been in effect since 1 July 2025. The fourth phase, targeting organizations with revenue above RM1.0 million, will take effect on 1 January 2026. While these businesses will enjoy a six-month grace period from the mandatory implementation date, it is important for them to understand what steps to take during this period to ensure full compliance thereafter. What happens if they forget to implement, what should they do?

Hence, it is always wise for taxpayers to have a clear understanding of e-Invoice treatment for different business transactions to ensure accurate application and to avoid pitfalls during and after the grace period.

This program aims to provide the necessary knowledge of the e-Invoice mechanism and to equip all Accounting and Operational staff in the organization with the compliance requirements related to your business transactions.

It is crucial to know when to issue an e-Invoice to customers to capture revenue, when to issue a self-billed invoice to record costs, and when suppliers are not required to issue e-Invoices but must provide a consolidated e-Invoice, among other scenarios. These are essential areas of knowledge and skill that all staff members across the organization must understand to ensure proper compliance and avoid potential issues.

Therefore, it is imperative that all staff involved in Accounting and other Operational functions are properly equipped with a solid understanding of the e-Invoice mechanism as it applies to daily accounting and business operations.

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

· Understand the mechanism of E-Invoice

· Apply E-Invoice for different types of Business Transactions

· Prepare and get ready for E-Invoice implementation

· Gain guidance on actions to be taken to capture revenue and cost for 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

· Timing of issuing e-invoice for the transactions

· E-Invoice processes and steps

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

· 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, including clarification feedback from LHDN

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 or Discounts Given to Customers

· Interest received from Banks

· Interest charge to Employees Loan/Advances

· Interest payment to Banks, HP companies.

· Inter- Company Interest Charge and Payment

· Sales with trade-ins like Car, Goldsmith, etc.

· Profit Sharing vs Rental Arrangement

· 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

· Giving Samples

· Consignment Sales

· 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

14 August 2025 (Thursday); 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/2025/06/E-Invoice-%E2%80%93-Compliance-Requirements-for-Business-Transactions-to-avoid-Pitfalls-1.pdf