Chapter 3: E-Invoice – documentation flow and mechanism

1.0 Introduction

E-Invoice is in digital format requires undergo the validation process to be legal and effective.

2.0 Mechanism

The digitalisation of e-Invoice requires the strict compliance on the issuance of invoice timely based on acceptable revenue recognition principles; that is sale of goods or services performed. The e-Invoice is then sent to MyInvois portal of IRB for validation, in near real time with the assignment of designated number embedded with QR code. Both the supplier and the trade customer would be notified on the e-Invoice. The supplier would send the validated e-Invoice and requires the customers to timely respond on the e-Invoice received, either accept or reject within stipulated time of 72-hour.

3.0 Documentation flows

An e-Invoice issued either based on the supplier IT system with API or adopt MyInvois portal of IRB. The e-Invoice upon validated by IRB on near real time basis would be supplemented with a unique identifier number embedded with QR code.

 

The supplier and the customers would be notified by IRB via API or MyInvois portal on the validated e-Invoice. The supplier would then to share the validated e-Invoice with the customer.

 

The customers must promptly review the validated e-Invoice shared by the supplier. The customer would either:

(a) accept the validated e-Invoice; or

(b) request the supplier to perform cancellation of the validated e-Invoice, or

(c) notify to IRB to request for rejection of the e-Invoice. 

The rejection request to IRB or cancellation request to the supplier must be accompanied by justification supported by cogent reason, which has to be done within 72-hour from the time of validation.

4.0 Retention of records

The supplier and the customer would be able to retrieve the e-Invoice in IRB cloud the format of PDF, XML/JSON (either one by one or in batches) for retention of records for 7 years.

 

IRB would store all accepted and validated e-Invoice in IRB’s database forming the big data platform for analysis and audit purposes.

5.0 Types of documents

In e-Invoice mechanism, the types of documents comprise of e-Invoice, credit note, debit note and refund note.

 

The credit note or debit note acts as adjustment to the e-Invoice issued with no refund of payment made to the customers. However, refund note would be used as a document to nullify the earlier e-Invoice issued with cash refund to the customers.

6.0 Legality and validity

The validation by IRB ensures authenticity of the e-Invoice and forms a legitimate document allowing the supplier to prove debts on debt recovery from the trade debtors; allowing customers to claim tax deduction. It also amounted to revenue admission to the IRB being gross business income on the supplier.

7.0 Conclusion

The complete transparency of the business transactions promotes fair business dealings, contribute to the economic growth of the country.

Get in touch:

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📞 603 – 7733 6770

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