Course Overview
Inland Revenue Board Malaysia’s (IRBM) E-invoicing Tax Audit Compliance With Expanded Sales And Service Tax (Sst). 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.
As at Budget 2025, sales and service tax (SST) will be expanded to new industry sectors like construction, equipment, financial services, healthcare, education and property leasing. This will also impact businesses’ e-invoicing. This course will highlight the key salient points of Malaysian’s Inland revenue board’s mechanics of e-invoicing, expanded sales and services tax (SST) 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:-
- Understand the correct format and fields requirements of e-invoicing as per latest IRBM general and specific guideline.
- Understand and apply sales and service tax rates based on newly expanded Sales and Service Tax (SST) Order 2025
- Understand the impact of e-invoicing due to expanded SST.
- Understand the differences of e-invoice submission methods using accounting software Application Programme Interface (API) versus manual invoice submission
- 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 Methodology
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 and myCustom SST
Course Content
Module 1: E invoicing and SST Framework
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
- Parties Exempted from e-invoicing
2) Overview of traditional tax invoice versus e-invoicing format.
3) Expanded Sales and Service Tax (SST) on 1 July 2025 and impact on e-invoicing requirements for sectors like constructions and leasing of equipment
- Types of construction projects service tax at 6%
- Leasing arrangement which subject to service tax of 8%
- Threshold for service tax registration and steps
- Housing Development Act SST exemption on service tax and non reviewable contracts
- Type of constructions which are subject to service tax
- Registration of service tax grouping
- Explanation of how to apply B2B exemption
- Practical impact to construction, engineering, contracts and procurement team
Module 2: Workflow Do’s and Don’t’s
4) IRBM e-invoice general workflow from pre submission and e-invoicing reporting processes for organisations.
- Instant validation process by IRBM.
- Scenarios of seller and buyer rejection, cancellation and resubmission of e-invoices within time frame window.
- Types of errors in e-invoice (Invalid errors)
- 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
- Import and Export Information: Inputing K2 custom form and K1 form for export and import.
5) 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.
- NRIC, Passport number, Army registration and Business Registration Number (BRN)
- Searching and Obtaining Supplier’s TIN
- Buyer’s TIN (mandatory for B2B/B2C/B2G transactions)
- Supplier’s registration/Identification Number/Passport number
- e-invoice code/number and date
- Description of Product or Service
- Tax type selection – Service Tax, Sales Tax, Tourism Tax, Low Value Goods Tax, SST Exemption
- Tax amount
- Total excluding tax
- Total including tax
6) Choosing the accounting software API’s integration or use of manual batch invoice submission via MyInvois portal.
Module 3: Compliance on Purchasing E-invoice and staff claims e-invoice supporting
7) Types of income or expenses that requires e-invoicing as proof of income and proof of expenses (latest update)
- Transactions with Buyers
- Statements/ Bills on a periodic basis
- Disbursement and reimbursement
- Employment perquisites and benefits
- Certain expenses incurred by employee on behalf of the employer
- Self-billed e-Invoice scenarios
- Transactions which involve payments (whether in monetary form or otherwise) to agents, dealers or distributors
- Cross-border transactions (import and export)
- Profit distribution (e.g., dividend dividend payouts)
- Related parties and inter-company transactions
Module 4: MyInvois Portal and Features Updates
8) Overview of IRBM myInvois portal and how to access revised user guidelines.
- Hands on session: Create manual e-invoice and self-billed e-invoice in myInvois portal
- How to access copies of myInvois e-invoice received and approved e-invoices billed on dashboard
- Administrative procedure: Download and back up for reporting reconciliation with billing systems
Module 5: Sales and Services Tax (SST) Administration: Refunds, Cancellation and Record Keeping
- Scenarios that trigger refunds of SST due to bad debts or irrecoverable debts
- Cancellation of SST registration and conditions
- Record keeping: Seven Years with e-invoices, self-billed e-invoices, customs forms from forwarder for importation of goods, credit notes and refund notes for adjustments.
Module 6: Tax Audit Compliance relating to E-Invoicing
- Record keeping relating to e-invoices and self billed e-invoice
- Digital download from myInvois for weekly tracking and reporting reconciliation
