KTP & Company PLT

“Boss, How Many Types of E-Invoices in Malaysia ❓ So Confusing ❗ ” 🤯

I hear this question a lot from our SME clients. E-invoicing is coming, and many bosses (including account personnel) are scratching their heads over the different types. So, let’s break it down in simple English.

There are four types of e-invoices in Malaysia, and each serves a different purpose.

  1. Regular e-Invoice
    This is the standard invoice issued by a supplier to a buyer after a transaction. It’s required if the buyer asks for it and must include details like the buyer’s name, address, and TIN.

💡 Example: A furniture store sells a dining table and issues an e-invoice to the customer on the spot.

  1. Self-Billed e-Invoice
    Here’s where it gets tricky. The buyer (not the seller) issues this invoice. This happens when:

✅Buying from foreign suppliers who can’t issue Malaysian e-invoices
✅Paying agent commissions
✅Dealing with e-commerce platforms

💡 Example: A company purchases software from an overseas vendor. Since the foreign supplier can’t issue an e-invoice, the company creates a self-billed e-invoice for record-keeping.

  1. Consolidated e-Invoice
    This is used when a business sells to the general public (B2C) and no individual customer requests an e-invoice. It’s issued within 7 days after month-end and uses a general TIN (EI00000000010).

💡 Example: A supermarket doesn’t issue e-invoices to each customer but consolidates all sales for the month into one e-invoice.

  1. Consolidated Self-Billed e-Invoice
    Same concept as a consolidated e-invoice, but here, the buyer (not the seller) issues the invoice. Used for transactions with individuals, interest payments, and insurance claims.

💡 Example: An insurance company issuing monthly payouts to policyholders prepares a consolidated self-billed e-invoice for all payments made.

So Boss, Which One Applies to You?

✅ If you sell B2B, you’ll mostly deal with regular e-invoices.
✅If you buy from overseas, you might need self-billed e-invoices.
✅If you sell to the general public, you need a consolidated e-invoice.
✅If you process bulk payments to individuals, it’s a consolidated self-billed e-invoice.

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I’m Koh Teck Peng

Welcome to my blog, I’m the founder and principal of KTP & Company PLT. My journey in the accounting profession has been driven by a passion for numbers and a dedication to helping businesses succeed. With over 25 years of experience, I’ve had the privilege of working with a wide range of clients, from small startups to large corporations, providing them with the financial insight and strategic guidance they need to thrive.

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