E-Invoice Update: General Guidelines – October 4, 2024

We have an important update about the Inland Revenue Board of Malaysia (LHDN). On October 4, 2024, LHDN released an updated version of their guidelines, moving from version 3.2 to 4.0. This update includes important changes to make processes easier and to help everyone follow the new tax rules.

To learn more about the latest e-invoice guidelines, click here.

You can find the full guidelines for version 4.0 here: LHDN e-Invoice General Guideline Version 4.0. Below, we have summarized the updates.

NO	PARAGRAPH IN EINVOICE GENERAL GUIDELINE	CONTENT	AFTER (VERSION 4.0)
1.	1.6.1	For the purposes of e-Invoice, the following persons are currently exempted from issuing e-Invoice (including issuance of self-billed e-Invoice): (a) Ruler and Ruling Chief 1 (b) Former Ruler and Ruling Chief 2 (c) Consort of a Ruler of a State having the title of Raja Perempuan, Sultanah, Tengku Ampuan, Raja Permaisuri, Tengku Permaisuri or Permaisuri (d) Consort of a Former Ruler of a State previously having the title of Raja Perempuan, Sultanah, Tengku Ampuan, Raja Permaisuri, Tengku Permaisuri or Permaisuri (e) Government (f) State government and state authority (g) Government authority (h) Local authority (i) Statutory authority and statutory body (j) Facilities provided by the above government, authority or body (e.g., hospital, clinic, multipurpose hall, etc.) (k) Consular offices and diplomatic officers, consular officers and consular employees (l) Individual who is not conducting business	1.6.1 For the purposes of e-Invoice, the following persons are currentlyexempted from issuing e-Invoice (including issuance of self-billed e-Invoice): (a) Foreign diplomatic office (b) Individual who is not conducting business (c) Statutory body, statutory authority and local authority, in relation to the following: (i) collection of payment, fee, charge, statutory levy, summon, compound and penalty by it in carrying out functions assigned to it under any written law; and (ii) transaction of goods sold and services performed before 1 July 2025 (d) International organisation for transaction of any goods sold or service performed before 1 July 2025 (e) Taxpayers with an annual turnover or revenue of less than RM150,000
2.	1.6.2	Hence, the above-mentioned persons are not required to issue an e-Invoice (including self-billed e-Invoice). For tax purposes, the receipts issued by the above-mentioned persons would be used as proof of expense.	Hence, the above-mentioned persons are not required to issue an e-Invoice (including self-billed e-Invoice). For tax purposes, the receipts / any existing documents issued by the above-mentioned persons would be used as proof of expense.
3.	1.6.4	However, in relation to transactions with persons in Section 1.6.1 (a), (b), (c), (d) and (k) above, Suppliers are allowed to replace the Buyer’s details with the information stated in Table 3.4 of the e-Invoice Specific Guideline.	However, in relation to transactions with persons in Section 1.6.1 (a) above, Suppliers are allowed to replace the Buyer’s details with the information stated in Table 3.5 of the e-Invoice Specific Guideline.
4.	1.6.5	In relation to transactions with persons in Section 1.6.1 (e), (f), (g), (h), (i) and (j) above, Suppliers are allowed to input Buyer’s TIN field with the general TIN assigned in Appendix 1 of the e-Invoice Specific Guideline.	The exemption in Section 1.6.1 will only be applicable to said persons. Any entities (e.g., companies, limited liability partnerships, etc.) owned by the above-mentioned persons would still be required to implement e-Invoice, in accordance with the e-Invoice implementation timeline in Section 1.5.
5.	1.6.9	The exemptions mentioned in Section 1.6.1 and 1.6.8 will be reviewed and updated from time to time. To support the e-Invoice initiative, the IRBM has initiated the discussion with the government, state government and relevant authorities to implement e-Invoice.	None