Transactions that involve monetary payments to agents, dealers, or distributors

General Overview

• Agents, dealers, and distributors are vital intermediaries in business supply chains. They connect manufacturers or service providers with consumers, earning a commission on each sale or service provided.

Issuance of e-Invoice from Seller to Purchaser

• When a Purchaser acquires goods or services from the Seller through an Agent/Dealer/Distributor, the Seller must issue an e-Invoice to the Purchaser to record the transaction.
• The roles of both parties for e-Invoice issuance are as follows:
  • Supplier: Seller
  • Buyer: Purchaser

• If the Purchaser does not request an e-Invoice, the Seller will provide a normal receipt/bill/invoice instead. However, the Seller is still required to issue a consolidated e-Invoice within seven (7) calendar days after the end of the month.
• This consolidated e-Invoice will aggregate all receipts/bills/invoices issued for the previous month and serve as proof of income.

Issuance of self-billed e-Invoice from Seller to Agent/Dealer/Distributor

• After completing a sale or transaction, the Agent/Dealer/Distributor is eligible to receive a payment from the Seller, such as a commission.
• In order to issue a self-billed e-Invoice, the roles of both parties are as follows:
  • Supplier: Agent/Dealer/Distributor
  • Buyer: Seller (assumes the role of Supplier to issue a self-billed e-Invoice as proof of expense)

Details to be provided by the Seller (i.e., Buyer) for issuing a self-billed e-Invoice to an agent/dealer/distributor.

• A simple example to explain: Ali is employed as a sales agent at Chère Automotive Sdn Bhd (CASB). On June 22, 2024, Ali successfully sold a Schnell model car for RM600,000. As per the agreement, Ali is entitled to a 20% commission on the sales he generates. In order to maintain a record of Ali’s income and CASB’s expenses, CASB issued a self-billed e-Invoice to Ali. This self-billed e-Invoice serves as evidence of Ali’s commission and CASB’s expenditure. Here is an example of the self-billed e-Invoice issued by CASB to Ali:

Conclusion

• It provides a general overview of the role of these intermediaries in business supply chains and highlights the issuance of e-Invoices from sellers to purchasers. This explores the issuance of self-billed e-Invoices from sellers to agents, dealers, or distributors, along with the details required for issuing such invoices.

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