BUDGET 2024 INLAND REVENUE BOARD MALAYSIA’S (IRBM) E-INVOICING

INTRODUCTION FOR BUDGET 2024 INLAND REVENUE BOARD MALAYSIA’S (IRBM) E-INVOICING

The National Budget 2024 which was tabled in parliament on 13 October 2023 will require adoption of e-invoicing for businesses which generated revenue or turnover above Rm100 million. By July 2025, e-Invoicing will become mandatory for all businesses irrespective of sales threshold.

The introduction of e-invoicing is one of Malaysian’s government digitalisation agenda for efficient tax administration. The purpose is to improve the efficiency and transparency of the invoicing process. It will also help to reduce tax evasion and fraud.

This course will highlight the key salient points of Malaysian’s Inland revenue board’s mechanics of e-invoicing and impact to financial operational processes.

Who should attend: Mainly business owners and their accounting, taxation, internal auditors, finance and compliance department personnel. Staff from other departments like Information Technology, Supply Chain, Human Resource, Sales, Procurement, Purchasing, project management and operations with finance related operational documentation responsibility who wish to understand the e-invoicing impact to departmental business operations.

COURSE OBJECTIVES

On completion of the programme, participants will be able to:-

1. Understand the correct format and fields requirements of e-invoicing as per latest IRBM guideline.
2. Understand the correct format and fields requirements of e-invoicing.
3. Understand the timeline and processes of e-invoice validation based on Continuous Transaction Control (CTC) model by Inland Revenue Board Malaysia (IRBM)
4. Understand the required information of every invoice issued to be stored at IRBM database.
5. Understand the differences of e-invoice submission methods using accounting software Application Programme Interface (API) versus manual invoice submission
6. Understand the types of income and expenses which requires compliance of e-invoicing and understand the parties or income which exemption requirements of e-invoicing applies.

COURSE CONTENT

Module 1

1) Overview of Budget 2024 Malaysia summary of key updates

• MADANI digitalisation agenda e-invoicing phases for businesses.
• IRBM related offences if failure to comply
• Tax incentives for investment in digitalisation for-e invoice implementation

2) Overview of traditional invoicing versus e-invoicing

3) Definition of e-invoicing as per IRBM’s requirement to My Invois Portal and required format.

4) E-invoicing implementation timeline (based on July 2024 IRBM update update).

5) IRBM’s Continuous Transaction Control (CTC) Model for e-invoice validation.

Module 2

6) IRBM e-invoice general workflow from pre submission and e-invoicing reporting processes for organisations.

• How Long Does e-invoice Validation Take?
• Instant validation process by IRBM.
• Scenarios of seller and buyer rejection, cancellation and resubmission of e-invoices within time frame window.
• Amendment of e-invoicing invoices processes to IRBM
• 72-Hours Grace period for e-invoice adjustments
• The Role of Debit Notes and Credit Notes for adjustments.
• The role of refund notes to buyer which is also component of e-invoice

7) Understand the components of e-Invoice required 55 Fields for MyInvois submission using API (Application Programme Interface) linked in accounting software and ERP system which required eight categories i.e.

• Supplier’s TIN
• Buyer’s TIN (including General TIN numbers)
• Supplier’s registration/Identification Number/Passport number
• e-invoice code/number and date
• Description of Product or Service
• Tax type
• Tax rate
• Tax amount
• Total excluding tax
• Total including tax

8) Impact on business operation and also essential financial process (Accounts Receivable and Accounts Payable) and its related functions.

9) Choosing the accounting software API’s integration or use of manual batch invoice submission via MyInvois portal.

Module 3

10) Industries that need to comply with e-invoicing.

11) Exemptions of person, persons or businesses not required to issue e-invoices (latest update)

12) Types of income or expenses that requires e-invoicing as proof of income and proof of expenses (latest update)

1. i) Transactions with Buyers
2. Statements/ Bills on a periodic basis

iii. Disbursement and reimbursement

1. Employment perquisites and benefits
2. Certain expenses incurred by employee on behalf of the employer
3. Self-billed e-Invoice

vii. Transactions which involve payments (whether in monetary form or otherwise) to agents, dealers or distributors

viii. Cross-border transactions (import and export)

1. Profit distribution (e.g., dividend distribution)
2. Foreign income source
3. Currency exchange rate

xii. E-commerce transactions

Note: As e-invoicing affects all businesses and industry, this session will deep dive into industry specific revenue/income and expenses which requires e-invoicing and does not require e-invoicing.

Module 4

Latest Frequently Asked Questions (FAQ) published by IRBM

Module 5

Latest updates by IRBM as per 28^th June and SDK integration as at July 2024

Overview of IRBM myInvois portal and specific user guidelines

Hands on session: Create manual e-invoice, self-billed e-invoice in myInvois portal and also e-credit note/refund note.

Addressing users concerns Q&A

Case study session

Assessing readiness with e-invoicing for company with tips to improve operational efficiency for each department for relevant industry.

Data security and privacy overview by IRBM.

Where appropriate, activities will include the following:

• Lecture and Video Presentation
• Gamified interactive quizzes session
• Faciliated Group Discussions with Q&A
• Open Question and Answer (Q&A) Sessions

Hands on test invoice submission in MyInvois Portal