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AutoCount Standard E-Invoice : Industry That Mandate Standard E-Invoice Issue

AutoCount Standard E-Invoice: Comprehensive Guide for Industries Mandating Standard E-Invoices

Certain industries in Malaysia are legally required to issue Standard E-Invoices, ensuring compliance with LHDN MyInvois Portal regulations. These industries must provide detailed transaction data for tax compliance and regulatory oversight, making the use of Consolidated E-Invoices prohibited. This guide combines key aspects of handling Standard E-Invoices and configuring AutoCount for industries where they are mandatory.

AutoCount Standard E-Invoice:Industry that mandate issue standard e-invoice

Industries Requiring Standard E-Invoices

The following industries and activities are mandated to issue Standard E-Invoices instead of Consolidated E-Invoices:

  • Automotive

    Sales of any motor vehicles.

  • Aviation

    Sales of flight tickets and private charters.

  • Luxury Goods and Jewelry

    Transactions involving luxury items (Details TBC).

  • Construction

    Construction Contractors undertaking construction projects as defined in the Income Tax (Construction Contracts) Regulation 2007.

  • Wholesalers and Retailers of Construction Materials

    Sales of construction materials, as outlined in the 4th Schedule of Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994, regardless of volume.

  • Licensed Betting and Gaming

    Payouts to winners of betting and gaming activities (Casino and gaming machines are exempted until further notice).

  • Payments to Agents, Dealers, and Distributors

    Commissions or payments made to agents, dealers, and distributors.

Why These Industries Require Standard E-Invoices

  • Regulatory Oversight

    These industries are regulated and require detailed transaction-level reporting for tax compliance.

  • Detailed Data Needs

    Consolidated E-Invoices do not meet the reporting requirements for high-value or specific taxable transactions.

  • TIN Validation

    Standard E-Invoices require a Tax Identification Number (TIN) from buyers or recipients to validate transactions and ensure proper tax tracking.

Setting Up AutoCount for Industries Mandating Standard E-Invoices

To comply with regulations, AutoCount must be configured correctly for these industries.

Step 1: Configure Country & Tax Options

  • Navigate to Tools > Options > Country & Tax in AutoCount.
  • Untick the option labeled Allow to Create Consolidated E-Invoice.
    • Once disabled, invoices cannot be created without a valid TIN.

Step 2: Configure Stock Items for Specific Industries (Optional for Certain Transactions)

  • Go to Stock > Stock Item Maintenance in AutoCount.
  • Select the relevant stock item and click Edit.
  • Tick the Must Generate E-Invoice option to enforce Standard E-Invoice generation for specific goods or services.
  • Save the settings.

Creating Standard E-Invoices in AutoCount

Step 1: Navigate to the Invoice Section

  • Go to Sales > Invoice > New to create a new invoice.

Step 2: Input Required Details

  • Enter all necessary fields, including the Debtor’s TIN.
  • Add detailed descriptions, quantities, and amounts for each item.

Important

If a TIN is missing, AutoCount will block the invoice creation process, showing an error message like “Document Tax Entity ID not found”.

Step 3: Save and Submit for Approval

  • Requestors: Save the invoice as a draft or submit it for approval.
  • Approvers: Review the invoice and either approve or reject it.

Step 4: Submit to LHDN

  • Once approved, AutoCount automatically submits the invoice to the LHDN MyInvois Portal for validation.
  • The system updates the invoice status as Valid or Invalid, depending on compliance.

Step 5: Preview and Validate

  • For valid invoices, go to Preview > Invoice (Malaysia E-Invoice) to view the finalized document.
  • The invoice will include a QR code and an LHDN validation link as proof of compliance.

Common Issues and Troubleshooting

AutoCount’s flexibility allows users to apply different credit control settings to various documents:

  • Missing TIN

    • Cause: Buyer or recipient has not provided a TIN.
    • Solution: Request the TIN from the customer before creating the invoice.

  • Invalid Invoice Status

    • Cause: Errors in mandatory fields prevent validation.
    • Solution: Review the error details, correct them, and resubmit the invoice.

  • Submission Failures

    • Cause: TIN is missing or incorrectly entered.
    • Solution: Verify and update the TIN, then attempt resubmission.

Advantages of Using AutoCount for Standard E-Invoices

AutoCount’s flexibility allows users to apply different credit control settings to various documents:

  • Regulatory Compliance

    AutoCount ensures all invoices meet LHDN requirements for industries that mandate Standard E-Invoices.

  • Error Prevention

    Mandatory TIN validation and configuration rules prevent non-compliant invoices.

  • Streamlined Workflow

    The system integrates approval workflows, validation, and submission to the LHDN MyInvois Portal, saving time and reducing errors.

  • Real-Time Validation

    Immediate feedback ensures invoices are accurate and compliant before submission.

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Conclusion

For industries requiring Standard E-Invoices, AutoCount offers a seamless solution to maintain compliance with Malaysian tax regulations. By enforcing TIN validation, disabling Consolidated E-Invoices, and integrating with the LHDN MyInvois Portal, AutoCount ensures smooth invoicing workflows while adhering to industry-specific rules.

FAQs

Consolidated E-Invoices lack the detailed reporting required for tax compliance and regulatory oversight in industries like automotive, construction, and betting.

Invoices cannot be created without a valid TIN for industries mandating Standard E-Invoices.

Approved invoices are submitted to the LHDN MyInvois Portal, which validates them and provides a status (valid or invalid).

The QR code confirms that the invoice complies with LHDN standards and serves as proof of validation.

Yes, AutoCount supports both types, but Consolidated E-Invoices cannot be used for industries mandating Standard E-Invoices.

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