Self-billed e-invoices: the rules

Normally the supplier issues the e-invoice. In some situations LHDN makes the buyer issue it instead, on the supplier's behalf. That is a self-billed e-invoice (type 11, with notes 12, 13 and 14). This article lists when it applies.

When you must self-bill

LHDN's e-Invoice Specific Guideline (section 8.3) lists these transactions:

  1. Payments to agents, dealers and distributors, such as commissions.
  2. Goods or services from foreign suppliers.
  3. Profit distribution, such as dividends (some dividend cases are exempt; see section 11 of the guideline).
  4. E-commerce transactions covered by section 14 of the guideline.
  5. Pay-outs to betting and gaming winners. Casino and gaming machine pay-outs are exempt until further notice.
  6. Transactions with individuals who are not conducting a business, for example buying a used item from an employee or renting land from a private landlord. This applies only when no other self-billed case fits.
  7. Interest payments, with exceptions. Banks and others charging interest to the public, interest an employee pays an employer, interest from a foreign payer, interest to a related company providing central treasury services, and late payment charges are all issued by the supplier instead.
  8. Insurance claim, compensation or benefit payments from an insurer.
  9. Capital reduction, share redemption, share buyback, return of capital or liquidation proceeds.

When you must not self-bill

  • Your supplier is a normal Malaysian business. They issue their own e-invoice, even if they are not yet mandated. In that case their normal receipt is your proof of expense.
  • LHDN's own example: an employee buys cupcakes from a roadside stall for a client meeting and gets a handwritten receipt. The company is "not required and not allowed" to self-bill. The receipt is enough.

Who goes where on the document

On a self-billed e-invoice you swap roles. You appear as the buyer, and the person you paid appears as the supplier.

For a foreign supplier with no Malaysian TIN, the supplier TIN is the general TIN EI00000000030. For a foreign individual supplier who only gives a passport, the same general TIN applies.

Consolidating self-billed e-invoices

You may combine self-billed e-invoices into one monthly document only for individuals not in business, interest paid to the public at large, certain insurance pay-outs, and transactions with your own overseas branches. The deadline is 7 calendar days after the month ends. Foreign suppliers and agent commissions are always filed one by one.

In envoice

  1. Click + New document and choose Self-Billed Invoice. The buyer card becomes a Supplier card.
  2. For a foreign supplier, envoice fills the general TIN for you.
  3. For an individual not in business, you can tick Hold for month-end consolidation to batch payments into one monthly self-billed e-invoice.
  4. Adjustment notes issued from a self-billed invoice use the self-billed types (12, 13, 14) automatically.

Sources

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