This post is also available in: Bahasa Melayu
Pending the implementation of e-Invoicing in Malaysia, what does your business need to do to be ready?
Here are some of the things you can do to prepare.
Do keep in mind that this list is subject to change depending on LHDN’s requirements.
Gather the required information
While you may already have most of the information about your customers and suppliers, there are new fields that are required to be submitted when sending in your invoice for LHDN validation.
This relates to information about your business, customer, supplier, and, if you are a trading company, inventory as well.
(see panel on the right for link to required fields)
Supplier information
Start with the supplier information. This would be information relating to your business.
Fields such as the TIN number and SST registration number are already available in the Company Setup screen. Make sure that these have the necessary information in them.
In addition to these, you should also have details such as the MSIC code and description related to the nature of your business.
Your email address
When it comes to your business email address, it is advisable to use a general email address like einvoice@yourcompany.com.my.
For the process of validating the invoice you submit, this is the email address that LHDN will use to communicate with you.
It should therefore ideally be an email address that can be monitored by others in your organisation.
Buyer information
Similarly, for your customers, there will be additional information required such as their MSIC code which you may not have.
In addition, if you are a trading company and your customer requires you to ship to different locations, make a note of the ship to address details as well.
If your customer falls into the SST exempted category, you will need to have details of the tax exemption, such as the tax exemption number.
Inventory
For trading companies, to facilitate electronic exchange of invoice between your supplier and you, the item numbers need to be mapped.
The supplier will use their item number when invoicing you and this may not be the same as your number.
What this means is that if your item number is B100, your supplier’s item number might be A100, and this needs to be matched when it is updated into your system.
Compile a list of your supplier’s item numbers and match them against the ones in your system.
Also, you will need to tag your products or services to one of the 40 categories as stipulated by LHDN.
Need help or more information?
This post is also available in: Bahasa Melayu
