In Malaysia’s e-Invoice framework, suppliers normally issue invoices to buyers. However, in certain cases, the responsibility shifts to the buyer. A self-billed e-Invoice occurs when the buyer creates and issues the invoice on behalf of the supplier, ensuring the transaction is properly documented and compliant with LHDN requirements.
When is a self-billed e-Invoice required?
Transactions with unregistered suppliers: e.g. individuals that not conducting business
Cross-border transactions: foreign suppliers unable to issue Malaysian-compliant e-Invoices
Deadline For imported goods, submit latest by the second end of the month. For imported services, submit latest by the following month’s end.
Commission payout to agents or dealers: buyer documents the payout via self-billing
Government or statutory requirements: buyers mandated to record the transaction themselves
Compliance requirements
Supplier consent: obtain where applicable to issue invoices on their behalf
Mandatory fields: supplier and buyer details, transaction description, and classification codes
Submission: send the e-Invoice to LHDN via MyInvois portal or API integration
Record-keeping: maintain proper documentation for audit and verification
Benefits
Ensures compliance: covers scenarios where suppliers cannot issue invoices
Streamlines documentation: ideal for cross-border and complex transactions
Reduces penalties risk: proper recording of all transactions
Improves transparency: clearer records between buyers and suppliers
Key challenges and risks
Administrative burden: buyers take on the responsibility of issuing invoices
Accuracy risks: incorrect classification codes or missing details can lead to compliance issues
System integration: accounting systems must align with LHDN’s e-Invoice requirements
Supplier vs. self-billed e-Invoice
Aspect
Supplier e-Invoice
Self-Billed e-Invoice
Issuer
Supplier
Buyer
Common use case
Standard domestic transactions
Cross-border (imported goods: submit by 2nd month-end; imported services: submit by following month-end), unregistered suppliers (individuals not conducting business), commission payout to agents or dealers
Compliance responsibility
Supplier
Buyer
Risk of errors
Lower (supplier handles)
Higher (buyer must ensure accuracy)
Why use SQL Accounting System for self-billed e-Invoices?
Managing self-billed e-Invoices can be complex, but SQL Accounting System makes it simple:
Automated e-Invoice generation: built-in compliance features
Classification code assignment: ensures accuracy for LHDN submissions
Seamless integration: direct submission to MyInvois portal
User-friendly interface: designed for SMEs and enterprises alike
With SQL Accounting System, you don’t just stay compliant—you save time, reduce errors, and gain confidence in your invoicing process.
Ready to streamline self-billed e-Invoices?
Adopt SQL Accounting System to automate compliance, meet cross-border deadlines, and submit e-Invoices directly to LHDN with confidence.
E-commerce settlements where platforms act as intermediaries.
Interest payouts or other financial transactions.
No. Salaries, allowances, and staff commissions are excluded. These are reported under Form E and not through e-invoicing.
Employee reimbursements (e.g., travel, medical claims) do not require self-billed e-invoices. These are internal expense claims, not supplier transactions.
No. You should not issue a self-billed e-invoice for local suppliers.
Local suppliers are required under Malaysia's e-invoicing framework to issue e-invoices themselves.
If they fail to do so, the responsibility lies with the supplier, not the buyer.
As the buyer, you should follow up with the supplier to ensure compliance, rather than self-billing.
Self-billed e-invoices are only applicable in cases where the supplier cannot issue an e-invoice (e.g., foreign suppliers, agent commissions, profit distributions). For local suppliers, the obligation remains on them.
They follow the same MyInvois validation rules as regular e-invoices:
Mandatory data fields (supplier, buyer, transaction details).
Real-time submission to the Inland Revenue Board of Malaysia (IRBM).
Compliance with technical standards for authenticity.
Issuing self-billed e-invoices for employee-related payments (not required).
Forgetting to include supplier details, even if foreign.
Not submitting to IRBM for validation.
Treating reimbursements as supplier transactions.
🗺️ Quick Flowchart for Buyers
Supplier
1
Is the supplier local?
Supplier must issue e-invoice.
2
Is the supplier foreign?
Buyer issues self-billed e-invoice.
3
Is it employment-related
or reimbursement?
No e-invoice required.
Special
Case
4
Is it a special case
(agent, profit distribution)?
Always validate via MyInvois.
Malaysia
