How to Issue e-Invoices for Retail Customers

Step-by-step process for retail customers requesting and not requesting e-invoices

With just 82 days left until Malaysia's mandatory e-invoice implementation deadline, understanding the process and its nuances is crucial for both retailers and customers alike. Let’s delve into the intricacies of issuing e-invoices in B2C transactions in Malaysia.

E-invoice issuance in B2C retail transactions follows a structured process, ensuring compliance with tax regulations and facilitating seamless transactions between retail businesses and customers. The example below utilizes an API model that allows retailers to submit e-invoices directly to the Inland Revenue Board of Malaysia (IRBM).

Here are two scenarios:

1. Retail Customers Who Request e-Invoice
2. Retail Customers Who Do Not Request e-Invoice

1. Process for Retail Customers Who REQUEST for e-Invoice:

Customers who request e-invoices usually do so for commercial use and require them for taxation purposes. If a customer requests an e-invoice, the retailer must provide it. Here are the steps:

Step 1: Request Information from Customer

When a customer requests an e-invoice, the retailer will obtain the customer's TIN or IC number.

Step 2: Send Data to IRBM for Validation

The collected customer information is entered into the POS system to be sent to IRBM for real-time validation. 

Step 3: Notification of Validated e-Invoice

If no errors are found by IRBM, both supplier and buyer receive a notification.

Step 4: Sharing of e-Invoice

Supplier sends the validated e-invoice, embedded with a QR code containing the validation link, to the customer.

Step 5: View of Validated e-Invoice

The validated e-Invoice can be viewed at MyInvois Portal and for buyer used as a proof of expense for tax purposes.

2. Process for Retail Customers Who DO NOT REQUEST e-Invoice:

Customers who do not request e-invoices usually do so for personal consumption or usage, and it's not required for taxation purposes. Here are the steps:

Step 1: Regular Receipt Issuance

For customers who opt for normal receipt, the retailer continues to provide them normal receipt as usual.

Step 2: Monthly Consolidation

Within seven (7) calendar days after end of the month, the seller consolidates the details of all receipts issued during that period.

Step 3: Submission of Consolidated Invoice for Validation

Within seven (7) days of the month's end, the retailer consolidates the receipt details to generate a single e-invoice covering all purchases made by customers who did not request for individual e-invoices. Supplier will send the consolidated invoice to IRBM for validation. The validated e-Invoice will serve as the Supplier’s proof of income for tax purposes.

Now, retailers, you know what steps to take for both scenarios.

Following e-invoice issuance, there are several post-issuance processes that need to be handled to ensure smooth processing and compliance. Let's take a closer look at these post-issuance procedures:

Rejection or Cancellation:

Optional rejection requests from customers and cancellation requests from suppliers must be initiated within a 72-hour timeframe. If the customer rejects the invoice, they need to provide a reason, and the seller will be notified, and can re-submit an amended invoice.

After this period, the invoice is considered valid, and any amendments necessitate credit, debit, or refund notes.

Transaction Summary:

Both customers and suppliers can access a summary of the transaction via Myinvois portal, facilitating transparency and record-keeping.

How Goldsoft is able to help you for the Malaysia e-invoice mandate:

1. Generate, send and receive e-invoices within the Goldsoft POS system to reduce manual works.
2. Provide direct API connection from the POS system to IRBM in XML and JSON formats to simplify compliances.
3. Track and monitor e-invoice submissions, validations, and statuses in real-time to streamline operations.

By adhering to these streamlined processes, retail businesses can enhance efficiency, ensure regulatory LHDN e-invoice compliance, and foster trust in your retail transactions.

For more information about POS e-invoicing for the retail industry, please do not hesitate to contact Goldsoft sales team at 03-2732 8833 or email to eason@goldsoft.com.my.