Periodic statements or bills

According to the Inland Revenue Board of Malaysia (IRBM), certain businesses, industries, and sectors practice the issuance of statements or bills to record multiple transactions between Supplier and Buyer over a set period (e.g., monthly, bi-monthly, quarterly, bi-annually, annually), instead of issuing individual invoices for each transaction .

This practice is called periodic statements or bills. These industries/sectors include, but are not limited to:

1. Digital/ Electronic payment
2. Financial services, including banking and financial institutions
3. Healthcare
4. Insurance
5. Stockbroking
6. Telecommunications

The Inland Revenue Board of Malaysia (IRBM) now requires suppliers to issue e-Invoices as proof of income. The e-Invoice is a digital billing document that replaces traditional statements/bills, showing the amount owed by customers for goods or services. The e-Invoice includes the supplier’s income and expenses and can be issued in XML or JSON format for validation by the IRBM. Validated e-Invoices can then be converted into visual statements or bills to be sent to buyers.

To streamline the e-Invoice issuance process and alleviate the burden on individual buyers when providing TIN and identification number details, IRBM offers a concession to these buyers. The following information will assist suppliers in issuing the e-Invoice:

Conclusion

Periodic statements or bills play a crucial role in facilitating financial interactions between businesses and their clients or partners. These statements serve as a backbone for financial transactions and provide a comprehensive overview of the financial activities of a business.

By adopting efficient e-invoicing practices, businesses can not only streamline their invoicing process but also enhance transparency and accuracy in their financial transactions. This, in turn, helps in building stronger and more trustworthy relationships with clients and partners, fostering a positive business environment.

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