With the implementation of e-Invoicing in Malaysia, there are questions over what type of transactions are affected.

In this article, we look at the treatment of some of the transactions.

Deposits

For deposits collected from customers:

  1. Refundable deposits
    If the deposit is refundable, then an e-Invoice is not required.
    As an example, rental deposits which are collected at the prior to the beginning of the rental period are refundable once the tenancy expires.
  2. Non-refundable deposits
    For non-refundable deposits, an e-Invoice is required.
    An example of this would be a deposit collected from a customer when an order is placed. This deposit would be applied against the sale amount and is not refundable.

Inter-company transactions

Yes, an e-Invoice is required for inter-company transactions.

Director’s fees

It depends on whether the fees paid are considered employment income, or for services rendered.

If employment income, then an e-Invoice is not required.

However, if it is for services, the Director is required to issue an e-Invoice to the company for any income received..

Rentals

An e-Invoice is required for rentals depending on whether the landlord is considered to be conducting a business or not.

  1. If the landlord is conducting a business, then the landlord is obliged to issue an e-Invoice.
  2. However, if the landlord is not conducting a business, then the tenant will submit a self billed invoice on behalf of the landlord.