Chapter 5: Issuance of e-Invoice

1.0 Introduction

An e-Invoice issued is for debt confirmation, being a valid document to show goods have been delivered or services have been performed based on contract. The issuance of e-Invoice for business purpose must adhere to the revenue recognition principles consistent with the accepted accounting standards.

2.0 Revenue recognition principle

The revenue recognition principles is governed by ss 24(1) and (1A) of Income Tax Act 1967, which is on accrual basis in general and receipt basis for deposit on services.

2.1 Stock in trade

The sales of goods in the course of carrying on the business would be gross business income in that particular year. Sales of goods would be recognised as revenue upon the transfer of risk and ownership of the stock in trade to the buyer.


E-Invoice is issued at this time interval.

2.2 Services performed

Services rendered by the service provider in the carrying on of the business would be gross income in that particular year. For services spread over 2 financial years, services rendered based on milestone agreed as stated in the agreement would be treated as gross business income in the respective year.


E-Invoice is issued progressively based on milestone agreed.

2.3 Deposit on services

Advance deposit received on services yet to be performed would be deemed gross business income in the year of payment receipt. [s 24(1A)]


E-Invoice is issued at this time interval.

3.0 Issuance of e-Invoice

The issuance of e-Invoice needs to adhere strictly to the revenue recognition principles as defined in ss 24(1) and (1A).

The issuance of receipt would not be required in the e-Invoice regime. [s 82(2A)] This takes effect from 1.1.2024.

3.1 Consolidated e-Invoice

Petty cash traders, F&B operators, hypermarkets may be submitted consolidated e-Invoice to IRB on a monthly basis as the individual customers on domestic consumption do not require e-Invoice for tax deduction.


In this situation, printed receipt under point of sales system would be continue used and issued to the respective customers. The combined sum of these printed receipts monthly in the point of sales system would form the consolidated e-Invoice submitted to IRB. [s 82(2B)]. This takes effect 1.1.2024.


The consolidated invoice shall be submitted to IRB within 7-day following expiration of each month. This consolidated invoice shall constitute an e-Invoice issued by the supplier. [s 82C(7)]. This takes effect 1.1.2024.

4.0 Defective e-Invoice

Where the supplier made an error or mistake in the e-Invoice issued, a substitute e-Invoice needs to be issued within 3 days from the date of issuance of the defective e-Invoice. [s 82C(8)]

5.0 Non-compliance

Non-compliance to the issuance of e-Invoice [s 82C(1)]; self-billed invoice [s 82C(6)] and consolidated e-Invoice [s 82C(7)] would be an offence. Upon convicted, the penalty would be:

(a)    RM200 ≤ Fine ≤ RM20,000;

(b)    Imprisonment ≤ 6 months; or

(c)    Both (a) and (b).

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