Malaysia e-invoicing system is structured to provide a seamless and digital approach for handling invoices.
To effectively utilize this system, businesses and individuals need to understand various elements such as the Tax Identification Number (TIN), NRIC, Business Registration Number (BRN), and the specific codes associated with different types of e-invoices.
1. Key Identifiers in e-invoicing Malaysia
- NRIC (National Registration Identity Card): The NRIC is a 12-digit number assigned to Malaysian individuals. It is frequently used when issuing e-invoices for local transactions as it serves as the primary identifier for individuals within the system.
- BRN (Business Registration Number): This is a 12-digit number provided by the Companies Commission of Malaysia (SSM) when a business registers. It is necessary for businesses when issuing e-invoices. If business owners are unaware of their new BRN, they can access the SSM e-search portal using their old number to retrieve the updated BRN.
2. The Four Types of General TIN in e-invoice Malaysia
Below is an explanation of the four (4) main types of General TIN used in Malaysia’s e-invoicing Malaysia.
a. EI000000000010 – General Public’s TIN
This TIN is used when:
- The buyer is a local individual in Malaysia providing only their NRIC (National Registration Identity Card) number. For example, if Ali buys a mobile phone and only provides his NRIC, the seller will use EI000000000010 as the TIN to open an e-invoice and validate the transaction.
- In a consolidated e-invoice, when multiple buyers’ TINs are combined at the end of a month. For instance, if all purchases in September are consolidated, the seller will use EI000000000010 to validate these transactions.
- In a consolidated self-billed e-invoice, when validating suppliers’ TINs. The seller uses EI000000000010 as a general TIN for suppliers when consolidating invoices for validation purposes.
b. EI000000000020 – Foreign Buyer’s / Foreign Shipping Recipient’s TIN
This TIN applies when:
- A non-Malaysian individual provides their passport, MyPR, or MyKas number for a transaction. For instance, when a foreign buyer, Emily, provides her passport number to purchase a magazine in Malaysia, EI000000000020 is used as her TIN for e-invoicing Malaysia validation.
- When exporting goods to a foreign buyer who does not have a TIN. The seller uses EI000000000020 as a default TIN for the foreign buyer to validate the e-invoice.
- When exporting goods to a foreign shipping recipient who does not have a TIN. The seller uses EI000000000020 and includes the shipping recipient’s details in the annexure to complete the e-invoice validation.
c. EI000000000030 – Foreign Supplier’s TIN
This TIN is applicable when:
- Conducting a self-billed e-invoice transaction with an individual foreign supplier. For instance, if Ahmad, a plumber from Indonesia, provides only his passport number, the seller uses EI000000000030 as Ahmad’s TIN for validation in the self-billed e-invoice.
- Engaging in an import transaction with a foreign supplier who does not have a TIN. For example, when importing watches from Lorex in Switzerland, the seller uses EI000000000030 to represent Lorex’s TIN in the e-invoice for validation purposes.
d. EI000000000040 – Buyer’s TIN (Government or Government Authorities)
This TIN is used for transactions involving:
- The government, state governments, or authorities such as statutory or local authorities.
- Exempt institutions that are not assigned a TIN.
- For example, if a seller supplies medical equipment to a government hospital, EI000000000040 is used as the TIN to validate the transaction and generate the e-invoice.
3. Types of TIN Based on Entity Categories
Apart from the general TIN types, TIN codes are categorized based on the type of entity involved in the transaction. Below are the categories:
| No. | Category | TIN Code |
|---|---|---|
| 1 | Companies | C |
| 2 | Cooperative Societies | CS |
| 3 | Partnerships | D |
| 4 | Associations | F |
| 5 | Limited Liability Partnerships | PT |
| 6 | Trust Bodies | TA |
| 7 | Unit Trusts/Property Trusts | TC |
| 8 | Business Trusts | TN |
| 9 | Real Estate Investment Trusts/Property Trust Funds | TR |
| 10 | Deceased Person’s Estate | TP |
| 11 | LaHindu Joint Families | J |
| 12 | Labuan Entities | LE |
| 13 | Individual | IG |
Examples of TIN Numbers:
- Individuals: IG115002000, IG4040080091 (typically 9-11 digits)
- Companies: C20880050010
- Partnerships: D4800990020
- Associations: F10234567090