Updated: 27 May 2025
This article includes three types of FAQ listings: General FAQs, System-Specific FAQs, and E-Commerce FAQs.
1. Common Base E-Invoice FAQ:
| Question | Answer |
|---|---|
Under what scenarios can a self-billed invoice be issued? | A self-billed e-Invoice can be issued in the following situations:
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Is there any timeline for E-Invoice submission? |
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| Is there any adjustment window allowed to the company to cancel an invoice submitted to LHDN? | Yes, the company can cancel an invoice within 72 hours from the date and time of validation |
| What are the consequences for failure to submit e-Invoice? | Failure to submit e-Invoice is an offence under Section 120(1)(d) of the Income Tax Act 1967, and will be fine of not less than RM200 and not more than RM20,000 or imprisonment not exceeding 6 months or both, for each non-compliance. |
| What is the timeframe to submit e-Invoice adjustments (example: debit note, credit note and refund note) after the 72-hours validation period? | There is no timeframe restriction for the company to issue e-Invoice adjustments. The company may follow own company policy for any e-Invoice adjustments. |
| Does the company allow for editing of information after the e-Invoice has been validated by LHDN? | No, the company will need to cancel the e-Invoice within 72 hours from time of validation and resubmit the E-Invoice with amended info. Any changes after 72 hours from time of validation would require the company to issue a new e-Invoice (i.e., debit note, credit note, refund note e-Invoice) to adjust the original e-Invoice issued. |
| Will the invoice number remain in the invoice document or will a different invoice number be assigned by LHDN upon the return of the validated e-Invoice to the supplier? | The invoice number will remain as a separate field in the same invoice document for the purpose of internal reference and tracking. Upon validation, the company will receive a validated e-Invoice, together with date and time of validation, validation link and a Unique Identifier Number assigned by LHDN. |
| How is the e-Invoice treatment for deposits? |
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| Is an e-Invoice required for return of monies to buyers? | Yes, a refund note e-Invoice issuance is required, with the following exception:
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| For self-billed e-Invoices, can the company consolidate all invoices received from the same foreign supplier? | No, a separate self-billed e-Invoice must be issued for each individual transaction. |
| In relation to acquisition of goods from foreign suppliers, when will the company be required to issue a self-billed e-Invoice? | The company are required to issue a self-billed e-Invoice once Royal Malaysian Customs Department’s (RMCD) clearance is obtained on the imported goods. The company would have to include the details as listed in the e-Invoice annexure on importation of goods. |
| In relation to acquisition of services from foreign suppliers, when will the company be required to issue a self-billed e-Invoice? | The company are required to issue a self-billed e-Invoice upon:
whichever is earlier. |
| Do the company need to issue e-Invoice for intercompany charges? | Yes, an e-Invoice is required to be issued for intercompany charges. |
| What is the allowed E-Invoice treatment during the 6 months grace period? |
Note: After the 6 months grace period, the above mentioned will not be allowed, else penalty will be served. |
| What is the E-Invoice treatment for vouchers/gift cards/loyalty points? |
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| Can the discount be applied directly on the customer receipt, or is it necessary to issue a CN to knock-off? | The discount can be applied by issuing an Other Receipt and submitting the E-Invoice, as long as the discount is not linked to any existing invoice. |
| When can a General TIN be used? | The General TIN may be used in the following scenarios:
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| What information should be provided for the supplier information in a self-billed invoice? |
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Can an old BRN use to submit E-Invoice? | Yes, taxpayers registered with SSM are generally required to use the new 12-digit business registration number (BRN) when submitting E-Invoices. LHDNM is aware that some taxpayers have faced challenges in providing the new BRN from SSM, leading to validation errors. To address this, LHDNM has temporarily disabled the BRN validation requirement for E-Invoice submissions, effective from 19 July 2024. |
| Are businesses allowed to issue a consolidated e-Invoice for all types of transactions where the buyers do not require an e-Invoice? | Yes, suppliers are permitted to issue a consolidated e-Invoice for transactions where the buyer has not requested an e-Invoice. This applies to business-to-business (B2B), business-to-consumer (B2C), and business-to-government (B2G) transactions, except for those transactions or activities specified under Section 3.7 of the e-Invoice Specific Guideline. |
| If an individual operates multiple sole proprietorships but has only one Taxpayer Identification Number (TIN), how can they differentiate e-invoices for each business? | If there are multiple sole proprietorships, each business will be identified by its ROB number and a business owner role will be required for each business. |
| Where can the supplier find the buyer's TIN? |
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| Is there any penalty after the 6-month grace period? | Yes. Failure to issue an e-Invoice is an offence under Section 120(1)(d) of the Income Tax Act 1967 and will result in a fine of not less than RM200 and not more than RM20,000, or imprisonment for a period not exceeding 6 months, or both, for each instance of non-compliance. |
| If company can start E-Invoice at any time, how can the 6-month grace period be determined? | The 6-month grace period is provided starting from the mandatory e-Invoice implementation date for each phase. |
| What about security measures if the buyer's information is misused by the seller to make fraudulent claims? Will the buyer receive notification that a transaction has taken place? | The buyer will receive an email notification once the e-Invoice is validated by IRBM. If a Malaysian individual’s TIN has been used without their permission, they will be notified by email when the e-Invoice is validated. In such cases, the individual can submit a request to the supplier to reject the transaction if it does not belong to them. |
| Do we still need to submit an E-Invoice if the purchase is made from an individual who doesn't own a company? | Yes, you'll still need to submit a self-billed E-Invoice to LHDNM to show that your company incurred this expense—even if the purchase was from an individual without a registered business. |
| If the customer doesn't want to claim the E-Invoice, do we still need to issue one? |
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| When E-Invoice starts, do we submit it right after issuing the customer invoice, or only after they’ve made payment? | You should submit it right away—even if the customer hasn't paid yet. The government wants to track your sales figures, not just the payments you've received. |
| What registration name should I enter when submitting an e-Invoice? | If you're submitting as a company, input the company name. If you're submitting as an individual, input your personal name. |
| What if the buyer comes back to exchange or return items after a week? | Ideally, when items are exchanged or returned, it's considered a new transaction, not an amendment to the original. So, you can just submit the new document as an E-Invoice. |
| For a B2B invoice, how to handle a refund if the customer hasn’t paid yet? | If customer haven’t paid yet, just issue a Credit Note and submit it. If they’ve already made the payment and you need to refund as Refund Note and submit that. |
| What if we pay in advance but receive the goods later from an overseas supplier—should the self-billed E-Invoice follow the payment date or the goods received date? | Just wait until you receive the invoice from the supplier, then only proceed with the submission. |
| Can I include a normal invoice without a TIN in a consolidated E-Invoice? | If you've created a customer invoice, it's considered B2B transaction—so no, you can’t include it in a consolidated E-Invoice. During the 6-month grace period, it’s allowed, but after that, you’ll need the customer’s details (including TIN) if you’re issuing a customer invoice. |
| Do we still need to issue a self-billed E-Invoice if the seller is from overseas? | Yes, you’ll need to mark it as a self-billed invoice and submit it yourself. |
| For self-billed E-Invoices, do we need to submit them per transaction, or can we consolidate and submit at the month-end? | You’ll need to submit them per transaction—consolidation isn’t allowed. |
| Can the customer retrieve their submitted cash sale info? | Yes, once the customer submits the E-Invoice using the QR code on the receipt, they can download a copy of it to their device for their records. |
| Do we need to submit an E-Invoice for our company’s utility bills? | Nope, utility services providers will handle the E-Invoice submission on their end. If you need a copy, you can just request it from them. |
| If I'm selling a service, like digital marketing, how do I handle E-Invoicing? | Just create the billing as usual and submit the E-Invoice. Even if there’s no stock involved, you’ll still choose the right account code and submit the sales info—just like with product sales. |
| How do we know if the customer has already submitted the E-Invoice themselves? Since they can just scan the QR code to do it. | When you generate the consolidated invoice, the system will automatically filter out those transactions that have already been submitted to avoid duplicate submission. |
| For Business-to-Government (B2G), when issuing a bill to the government, do we still need to submit the E-Invoice within 72 hours? That means we can’t submit it as a consolidated invoice, right? | Both B2B and B2G transactions require E-Invoices to be submitted individually within 72 hours, cannot be submitted as a consolidated invoice. |
| How long is the QR code on a cash sale receipt valid for? | This is based on the Dynamod settings for the Consolidated Cut-Off Date. You may contact our agent for assistance with the configuration. |
| Rental should be issued as what document type? | Rental may issue as Other Payment. |
| How about staff claims? Does it need to be submitted as e-invoice? | The employer must be able to prove the employer-employee relationship to be eligible for claim for e-Invoices requested under employee’s name or using existing supporting documentation |
| If a company has two MSIC codes, should it use both or just one? | Use the major MSIC for the company is enough. |
| If a company receives rental income, is it required to issue a self-billed invoice? To be specific, the company is renting the space to a customer for business purposes, not to an individual for personal use. | No, the company should issue customer invoices to their customers and submit as e-invoice. |
| Expenses below RM 500, does it need to issue E-Invoice? | Yes, any expenses also need to be submit as e-invoice. |
2. System Base E-Invoice FAQ:
| Question | Answer |
|---|---|
| Where to find refund note in system? | Just do like normal refund practice, then our system will help to mark it as refund note. |
| Is there any file size limitation during E-Invoice submission to LHDN? |
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| Can a cancellation be made in the MyInvois portal and then do submission again from Dynamod? | No, cancellations should not be performed via the MyInvois Portal. The proper procedure is to cancel the transaction directly within Dynamod by locating the transaction and processing the cancellation within 72 hours. |
| What main info need to the system for searching of the TIN number? | To search for a TIN, the user needs to provide their BRN/NRIC in Dynamod to search for the TIN. |
Is it only SST-registered businesses that need to manage stock and tax codes in the chart of accounts? | Yes, if your business isn’t registered for SST, you can just ignore those parts. |
3. E-Commerce Base E-Invoice FAQ:
| Question | Answer |
|---|---|
| When a sale or transaction is concluded between merchant and customer through an e-commerce platform, which party (e-commerce platform or merchant) is responsible for issuance of e-Invoice to the customer? | The e-commerce platform will be responsible for issuance of:
to the customer through the e-commerce platform. Merchants are not required to issue an e-Invoice or receipt to the customer. In relation to (ii), where the customer did not request an e-Invoice, the e-commerce platform provider is allowed to issue a consolidated e-Invoice for the said transactions with consumers. Note: E-commerce platform provider is required to input the product classification in the said e-Invoice to the customer to indicate that such transaction is in relation to e-commerce transaction where the e-Invoice is issued by the e-commerce platform provider to the customer. |
| Which party (merchant and/or service provider or e-commerce platform provider) is responsible for issuance of e-Invoice to record the income generated by merchant and/or service provider (e.g., logistics provider) from transactions concluded through an e-commerce platform? | The e-commerce platform provider is responsible for assuming the role of Issuer and issuing a self-billed e-Invoice to record the merchant and/or service provider’s income earned from transactions concluded through the e-commerce platform. The frequency of the self-billed e-Invoice issuance could be in accordance with the current issuance frequency of e-commerce platform provider. |
| What is the e-Invoice treatment for charges imposed by e-commerce platform provider to merchant and/or service provider for the platform usage? | The e-commerce platform provider is required to issue an e-Invoice for the charges imposed to merchant and/or service provider for the platform usage. The frequency of e-Invoice issuance could be in accordance with the current issuance frequency of e-commerce platform provider. |
| Does e-commerce platform provider allow to issue consolidated e-Invoice to record the income generated by merchant and/or service provider from e-commerce transactions? | E-commerce platform provider is required to issue self-billed e-Invoice instead of consolidated e-Invoice. The frequency of self-billed e-Invoice issuance could be in accordance with the current issuance frequency of e-commerce platform. |
| When should an e-Invoice issued by e-commerce platform provider to record the income generated by merchant and/or service provider from e-commerce transactions? | E-commerce platform provider is allowed to follow the current billing arrangement. Where required, the e-commerce platform provider may issue draft / proforma invoices to merchant and/or service provider. However, only the final e-Invoice is required to be submitted to LHDN for validation. |
| What is the e-Invoice treatment for return of goods where monies are being returned by the e-commerce platform provider to the affected consumer? | E-commerce platform provider is required to issue a refund note e-Invoice to record the refund on the goods returned. |
| Can the company include e-commerce transactions in the same consolidated e-Invoice as brick-and-mortar store transactions? | It is not advisable to include e-commerce transactions in the same consolidated e-Invoice as brick-and-mortar store transactions, since the transaction flow, responsibility and classification could be different between both types of transactions. |
| I earn commission from a supplier. As a business, do I need to issue an e-invoice for this income? | No, regardless of whether you are an individual or a business, you are not required to issue an e-invoice for commission income. Instead, the supplier who pays the commission is responsible for issuing a self-billed e-invoice on your behalf. In this case
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