Exemptions from implementing e-Invoice

The Inland Revenue Board of Malaysia (IRBM) has released an e-invoicing guideline that details the scope of implementation of e-invoice. The guideline outlines exemptions regarding e-invoicing implementation, which are crucial as they provide a framework for determining who is required to comply with the e-invoicing mandate and who is not.

The following entities are exempted from issuing e-invoices, including self-billed e-invoices:

• Ruler and Ruling Chief as defined in Section 76 of the Income Tax Act 1967.
• Former Ruler and Ruling Chief, excluding a former Governor or Yang di-Pertua Negara of a State, as defined in the same section of the Act.
• Consorts of a Ruler or Former Ruler of a State with specific titles like Raja Perempuan, Sultanah, Tengku Ampuan, Raja Permaisuri, Tengku Permaisuri, or Permaisuri.
• Government, State government, and state authority.
• Government authority, Local authority.
• Statutory authority and statutory body.
• Facilities provided by the above government, authority, or body, such as hospitals, clinics, multipurpose halls, etc.
• Consular offices and personnel, including diplomatic officers, consular officers, and consular employees.

Conclusion

• These exemptions are carefully designed to accommodate the unique positions or challenges that some entities or individuals may face with e-invoicing implementation.
• Furthermore, the guideline recognizes the challenges in issuing e-invoices for certain types of income or expenses, providing a well-defined pathway for exemptions and easing the transition towards e-invoicing. Some of these income types include Employment income, Alimony, Pension, Scholarship, and Zakat Scholarship.

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