Self-billing E-Invoice

Overall of Self-billing E-invoice

• When a sale or transaction is concluded, the Supplier issues an e-Invoice to recognize their income and as a record of the Buyer’s spending (proof of expense).
• However, there are certain circumstances where another party, other than the Supplier, is allowed to issue a self-billed e-Invoice on behalf of the Supplier. This is known as a self-billing e-Invoice.

For e-Invoice purposes, self-billed e-Invoice is allowed for the following transactions:

1. Payment to agents, dealers, distributors, etc.
2. Goods sold or services rendered by foreign suppliers
3. Profit distribution (e.g., dividend distribution)
4. e-Commerce transactions
5. Pay-out to all betting and gaming winners
6. Acquisition of goods or services from individual taxpayers

• Where a Buyer is required to issue a self-billed e-Invoice, the Buyer assumes the role of the Supplier to be the issuer of the e-Invoice and submits it to the Inland Revenue Board of Malaysia (IRBM) for validation. Upon validation, the Buyer can use the validated e-Invoice as proof of expense for tax purposes .

Parties involved in self-billed e-Invoice:

Details required to be input by Buyer for issuance of self-billed e-Invoice:

Conclusion

In conclusion, self-billing e-invoices offer numerous benefits for both businesses and individuals. They provide a streamlined and efficient way to recognize income, record expenses, and comply with tax regulations.

By understanding the eligibility criteria and advantages of self-billing e-invoices, you can optimize your financial processes and simplify record-keeping. Don’t miss out on this opportunity to enhance your financial efficiency and ensure tax compliance. Take advantage of self-billing e-invoices today!

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