(As at 5 June 2025)

An e-Invoice is a digital record of a transactional exchange between a seller(supplier) and a purchaser (buyer), which goes through the Lembaga Hasil Dalam Negeri Malaysia (LHDNM) portal for validation and recordkeeping.

An e-Invoice contains all the details of an invoice along with a Unique Identification Number (UIN) and QR code, which are generated by LHDNM after proper verification

of the core fields like Tax Identification Number (TIN), Company Registration Number, MyKad Number, etc. The buyer and seller can scan the QR code to verify the authenticity of the e-Invoice.

Distributors / Stockists will receive an e-Invoice which contains the UIN and QR code generated by LHDNM in their D.I. account for the following orders placed after 1 July 2025:

1. New Distributor registration
2. Distributor product sales and service orders
3. Stockist product sales and service orders

Other orders which do not fall under the above 3 categories and orders which are rejected by LHDNM due to incomplete data or invalid MyKad number will be compiled and consolidated by D.I. at the end of the month and sent to LHDNM within 7 calendar days after month end; this is known as a consolidated e-Invoice. Distributors/ Stockists will receive the normal invoice which doesn’t contain the UIN and QR code in their D.I. account.

Individuals

1. Name
2. MyKad Number
3. Tax Identification Number (TIN)
4. Phone number
5. Address

Legal Entities

1. Company name
2. Company Registration Number
3. Tax Identification Number (TIN)

D.I. will provide an e-Invoice upon request by the distributor or stockist. Regardless of whether the order is placed online or offline, the e-Invoice will be issued within 3 days from the transaction date.

If no request is made, D.I. will issue a regular receipt and submit all sales transactions as a consolidated e-Invoice to LHDNM.

This depends on whether you meet the e-Invoice implementation threshold and schedule.

If you fall within the e-Invoice requirements and implementation timeline, and your customer requests an e-Invoice, then you must issue one and submit it to LHDNM. If the customer does not request an e-Invoice, you may issue a regular receipt and submit all sales transactions as a consolidated e-Invoice to LHDNM.

For further details on the e-Invoice implementation timeline, please refer to Question 1.

For some business transactions, the buyer is required to assume the role of the supplier and issue a self-billed e-Invoice as a record for purchases made / spending by the buyer (as proof of expense). Distributors’ bonuses and rewards are included in these business transactions. Hence, D.I. is obliged to transmit the self-billed e-Invoice to LHDNM for the bonuses and rewards (monetary and non-monetary) given to Distributors.

D.I. is obliged to share a validated self-billed e-Invoice which contains the UIN and QR code with Distributors.

D.I. is obliged to issue a self-billed e-Invoice for Distributors’ bonuses and rewards regardless of the amount.

Yes, D.I. is obliged to share the validated self-billed e-Invoice with the Distributors. Distributors can use these validated self-billed e-Invoice as proof of income. Hence, Distributors are not required to issue an e-Invoice for the bonuses and rewards earned from D.I..

D.I. will refer to the bank account type for the self-billed e-Invoice.

While changes to bank account types are generally discouraged to ensure consistency in processing, but, Distributors may submit a request by contacting our HQ @ 04-3974675 (Attn: Ms. Ng).

Yes, D.I. will issue a self-billed e-Invoice for non-monetary rewards, such as seminars, trips and gifts provided to Distributors. All these benefits will also be reported under the CP58 form.

For bonuses and monetary rewards, the self-billed e-Invoices will be available in their

D.I. account within the payment month.

For non-monetary rewards, the self-billed e-Invoices will be available in their D.I. account latest by the end of the year.

E-invoicing requirements are only applicable to businesses in Malaysia. Overseas entities are not required to issue any self-billed e-Invoices for the bonus payout and rewards (monetary and non-monetary) to Distributors. Hence, Distributors are required to issue an e-Invoice for all foreign income received in Malaysia from outside Malaysia as a proof of income for tax purposes, latest by the end of the month following the month of receipt of the said foreign income.

If the consumer requests for an e-Invoice within the same month of the purchase transactions, the suppliers are required to issue an e-Invoice. If the consumer makes the request after the month-end, the suppliers can deny the request.

D.I. is not aware of any announcement made by LHDNM indicating that the taxpayer is not required to do any tax filing in the future.

The suppliers will be subject to a fine of not less than RM200 and not more than RM20,000 or imprisonment not exceeding 6 months or both.

For more detailed information and updates on e-Invoicing implementation in Malaysia, please visit https://www.hasil.gov.my/en/e-invoice/

Starting 01.07.2025, D.I. will adopt the e-Invoicing system. Please complete the D.I. DISTRIBUTOR INFO UPDATE FORM and submit it via:

• WhatsApp: 012-4230698; or
• In-person: Nearest branch
• Form link: DI 2025 E-Invoice Form

Effective 01.05.2025, the following changes apply:

1. Sales Submission Deadline: Sales must be received by the D.I. on or before the 23rd of each month (online or mailed).
2. Top-Up Period: Must be made between the 24th and 26th of each month. Eligibility requires:
   1. Distributor at Manager level or above; and
   2. 100BV or more purchased in that month.
3. Late Submissions: Late submissions will count towards the next month’s sales, with the distributor responsible for any consequences.