FAQ’s on Cross Border Transactions and Foreign Supplier/ Buyer

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1) When should a Malaysian buyer issue a self-billed e-invoice for goods purchased under one foreign supplier’s invoice but imported via multiple shipments?

If multiple shipments are cleared under a single invoice, the buyer must issue a self-billed e-invoice based on the invoice and customs clearance date.

  • If the invoice is issued before the first shipment clearance, issue a self-billed e-invoice by the end of the month after the first shipment’s clearance date, including the customs form reference number. No additional e-invoices are needed for later shipments.
  • If the invoice is issued after the first shipment, a self-billed e-invoice is needed for each shipment, based on customs value. A final e-invoice is issued upon receiving the foreign supplier’s invoice.
  • If the invoice is issued after the final shipment, issue self-billed e-invoices for each shipment and a final one to reconcile discrepancies.

2) If I purchase goods from a bonded warehouse or Free Zone, do I need to include the customs form reference number in the self-billed e-invoice?

Yes, include the customs form reference number when issuing a self-billed e-invoice for goods delivered from a bonded warehouse or Free Zone.

3) What are the e-invoice requirements if I am located in a bonded warehouse and sell goods to another Malaysian buyer?

  • Issue a self-billed e-invoice for the goods purchased from the foreign supplier (customs form reference optional).
  • Issue an e-invoice for goods sold to the Malaysian buyer (customs form reference optional).

4) If I purchase goods stored in a bonded warehouse or Free Zone and sell them to another Malaysian buyer, how should e-invoices and self-billed e-invoices be issued?

  • Issue a self-billed e-invoice for the goods purchased from the foreign supplier (customs form reference optional).
  • Issue an e-invoice for the goods sold to the Malaysian buyer (customs form reference optional).

5) If I instruct a foreign supplier to deliver goods directly to other Malaysian buyers, how should the e-invoice and self-billed e-invoice be issued?

  • Issue a self-billed e-invoice for goods purchased from the foreign supplier.
  • Issue e-invoices to subsequent Malaysian buyers for goods sold.

6) If goods are directly drop-shipped from a foreign supplier to a Malaysian buyer, how should e-invoices be handled?

  • Issue a self-billed e-invoice for goods purchased from the foreign supplier (customs form reference optional).
  • Issue an e-invoice for goods sold to the Malaysian buyer (customs form reference optional).

7) If goods are delivered directly from a supplier in Malaysia to me, am I required to include the customs form reference number?

Yes, for goods delivered from a Malaysian supplier located in a bonded warehouse or Free Zone, include the customs form reference number in the self-billed e-invoice.

8) When must a Malaysian supplier issue an e-invoice for goods exported to foreign buyers?

Malaysian suppliers must issue e-invoices following existing invoicing practices. Including the customs form reference number is optional.

9) For low-value goods declared under the electronic Pre-Alert Manifest (e-PAM) system, what should be entered in the customs form reference field?

For low-value goods under e-PAM, taxpayers are not required to include the e-PAM reference number in the self-billed e-invoice. A self-billed e-invoice is needed when the foreign supplier’s invoice is received.

10) How do taxpayers issue an e-Invoice to a non-TIN holder such as foreign (non-Malaysian) buyers?

Suppliers are required to obtain recipient details from the recipient. Further, in relation to TIN to be input in the e-Invoice, supplier may use “EI00000000020” for foreign buyers.

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