Self-Billed eInovice - the Why, the How and the Who
Self-billed e-invoices, particularly under Malaysian tax regulations, can be tricky if not handled carefully. Here's a clear, detailed breakdown for your bookkeeper and accounting technician to understand the concept, the relevant rules, and practical actions to avoid any potential penalties: What is a Self-Billed E-Invoice? A self-billed e-invoice is issued by the buyer , instead of the supplier. In a normal transaction, typically, suppliers issue the invoice. But in a self-billing arrangement, it is the customer (recipient or buyer) who prepares and sends the invoice on behalf of the supplier. In Malaysia, self-bill documents are allowed under certain conditions and especially important for SST (Sales and Service Tax) registrants. With the mandatory implementation of e-invoicing (via MyInvois by LHDN) progressively effective from 2024 onwards, it's vital to ensure correct practice and adherence. Why Self-Billing? Usually chosen when: The buy...
