7 industries that cannot use Consolidated e-Invoice!

Published: Tue, 05/07/24

Updated: Sat, 05/11/24

Before we delve into Consolidated e-Invoice, we first need to understand the types of e-Invoices and the process flow of e-Invoice.

What are the types of e-Invoices?

Invoice: This is a commercial document that itemizes a transaction between a seller and a buyer. It also includes invoices issued by buyers to record their expenses.
Credit Note: A credit note is issued by a seller to correct errors, typically used when no refund is paid to the buyer, but rather to provide discounts or adjustments for returned goods against the original e-Invoice.

Debit Note: A debit note is used to explain adjustments made against a previous e-Invoice due to additional charges incurred.
Refund Note: A refund e-invoice is a document issued by a seller to confirm the refund of payment to the buyer. This is used in cases where a refund to the buyer is necessary.

SIX major steps in the process flow of e-Invoice:

So, here's the question! What should retail business owners do?

The business model of the retail industry is directly targeting consumers, which is what we call B2C (Business to Consumer).

Isn't it troublesome if every single transaction requires issuing an e-Invoice?

That's when you need to use Consolidated e-Invoice!

What is Consolidated e-Invoice?

A Consolidated e-Invoice is an aggregated invoice issued by suppliers, combining multiple receipts or invoices into a single document, thereby eliminating the need for separate invoices for each transaction. If buyers do not request individual e-invoices, suppliers issue normal invoices as per usual business practice, which are then aggregated into a consolidated e-invoice. Subsequently, the consolidated e-invoice is submitted to the tax authority (LHDN) for validation within 7 days.

For example:

31.1.2025 - End of the month's business/sales

1.2.2025 to 7.2.2025 - Businesses compile sales transactions from the previous month, issue a consolidated e-invoice, and submit it to LHDN for validation within 7 days.

Here are the seven industries that cannot use Consolidated e-Invoice:

Automotive
Aviation
Luxury goods and Jewelry
Taxpayers are allowed to issue consolidated e-Invoice (in the event the buyers do not request for e-Invoice) until further notice.
Construction
Wholesalers and retailers of construction materials
Licensed Betting and Gaming
Payments to Agents/Dealers/Distributors

Free Physical Tax Sharing

Have many questions about e-invoices? Feeling uneasy about e-invoice policies? Don't worry, because you're not alone in feeling fearful due to these policies! Many entrepreneurs feel confused and anxious about e-invoice policies, unsure of how to begin transitioning their transactions to the e-invoicing system. If you're facing this issue too, you can't afford to miss the physical FREE tax sharing "e-Invoicing for SMEs: From Mystery to Mastery” hosted by YYC.

Event Details:

Date: 25/5/2024 (Saturday)

Time：10:00AM

Speaker： Zen Chow, YYC Tax Practice Leader

Location: Menara PGRM Cheras (Level 4, Dewan Wawasan)

Fees: FREE

This seminar will help businesses gain a deeper understanding of what e-invoicing is and how it can impact your business models, enabling you to confidently operate your businesses in 2024. Attendees will receive a special gift from YYC《e-Invoicing Assessment Checklist》

Seats are limited, register now!

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Kuala Lumpur Wilayah Persekutuan 55100
MALAYSIA

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