4 things you need to know about Self-billed e-Invoice in Malaysia

4 things you need to know about Self-billed e-Invoice in Malaysia

In Malaysia’s e-invoice framework, a Self-billed e-Invoice is a document issued by the Buyer (the person making the payment) rather than the Supplier. This is mandatory for specific transactions where the supplier is unable or not required to issue a validated e-invoice.

As of January 2026, here is the guide for handling Self-billed e-invoices.

1. When to Issue a Self-Billed e-Invoice

You must issue a self-billed e-invoice in the following scenarios:

Category

Description

Foreign Suppliers

Goods/services purchased from outside Malaysia (Import).

Agents/Dealers/Distributors

Payments for commissions, incentives, or rebates.

Individuals (Non-Business)

Purchases from individuals not registered as a business (e.g., a freelancer or a person selling a used car).

e-Commerce

Platforms issuing invoices to merchants/drivers for service fees.

Profit Distribution

Dividends or profit payouts from non-listed companies or unit trusts.

Betting & Gaming

Payouts to winners of licensed betting/gaming activities.

2. Key Data Requirements

Unlike a standard invoice, the Buyer is the Issuer. You will need:

  • Supplier Information: Full legal name, address, and TIN (Tax Identification Number).

    • Note: For foreign suppliers, use the placeholder TIN: EI00000000030.

  • Buyer Information: Your own company details (automatically populated in the portal).

  • Transaction Details: Classification code, product description, quantity, unit price, and tax rate.

  • Customs Reference: For imports, include the Customs Form No. 1 or 9 (if applicable).

3. The Issuance Process (Step-by-Step)

You can issue these through the MyInvois Portal or an integrated API/Accounting Software.

  1. Select Document Type: Choose Self-Billed Invoice (Document Type Code: 02).

  2. Input Details: Enter the supplier's details. If they are a non-business individual, use their IC/Passport number.

  3. Submission: Submit the document to IRBM (LHDN) for real-time validation.

  4. Validation: LHDN issues a Unique Identifier Number (UIN) and a QR code.

  5. Sharing: Once validated, you should share the human-readable version (PDF) with the supplier for their records.

4. Important Rules for 2026

  • Exemption Threshold: If your annual revenue is below RM1 million, you are generally exempt from issuing e-invoices until Phase 5 (July 2026).

  • Consolidation Limit: Effective 1 January 2026, any transaction exceeding RM10,000 cannot be consolidated; it must have an individual self-billed e-invoice.

Comparison: Standard vs. Self-Billed

Feature

Standard e-Invoice

Self-Billed e-Invoice

Who Issues?

Supplier (Seller)

Buyer (Purchaser)

Who Validates?

IRBM (LHDN)

IRBM (LHDN)

Purpose

Proof of Income (Seller)

Proof of Expense (Buyer)


Disclaimer:

The information shared in this post is for general educational and reference purposes only. It does not constitute professional advice. Regulations and requirements may change from time to time. For guidance specific to your situation, please consult with our firm or a qualified professional.