Practical E-Invoice FAQ Compilation

With the rollout of e-invoicing requirements by LHDN, many businesses, freelancers, and service providers are asking: Do I need to issue an e-invoice for this transaction?

To simplify things, here’s a practical FAQ table (compiled by August Advisory) that outlines common scenarios and whether a supplier needs to issue an e-invoice, or if the buyer must self-bill.

Key Takeaways

1. Freelancers with revenue ≥ RM500k must issue e-invoices, while those under RM500k are exempt.
2. Rental payments often require either landlord-issued or tenant self-billed e-invoices.
3. Insurance, road tax, and government summonses fall under exemptions or disbursements, so no e-invoice is required.
4. Foreign service providers (e.g., Facebook, Google Ads) trigger a self-billing requirement by the buyer.

Final Thoughts

The transition to e-invoicing in Malaysia aims to enhance compliance and transparency. While the rules can feel complex, understanding specific scenarios will help businesses and individuals stay compliant with LHDN’s guidelines.

Don’t forget: statutory authorities will begin issuing e-invoices starting 1 July 2025.

Credit: This FAQ compilation was prepared by August Advisory – Growing Business & People.

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