E-invoicing digitizes transactions between sellers and buyers, replacing traditional invoices. It’s mandatory in Indonesia, Vietnam, and China, while voluntary in Singapore and Thailand. In Malaysia, phased implementation begins in 2024, with all businesses required to comply by mid-2025, except micro SMEs earning below RM150,000.
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Definition:
An e-invoice is a digital document representing a transaction between a seller and a buyer, replacing paper or electronic invoices, credit notes, and debit notes.
Key Information on e-invoicing:
- Contains details like seller and buyer information, item description, quantity, price, tax, and total amount.
- Applicable for Business to Business (B2B), Business to Consumer (B2C), and Business to Government (B2G) transactions.
- Used for both domestic and cross-border transactions.
Implementation in Southeast Asia:
- Indonesia & Vietnam: Mandatory e-invoicing.
- Singapore & Thailand: Voluntary e-invoicing.
- China: Fapiao system required for new taxpayers.
Malaysia Specifics:
- Mandatory for businesses with:
- Annual turnover over RM100 million by Aug 1, 2024.
- Annual turnover over RM25 million to RM100 million by Jan 1, 2025.
- All taxpayers by July 1, 2025, except micro SMEs earning below RM150,000.
- Non-compliance Penalties:
- Fine between RM200 to RM20,000.
- Up to six months jail, or both.
- Six-month flexibility period for the first phase.
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