What is a Self-Billed E-Invoice?
A self-billed e-Invoice is an e-Invoice issued by the Buyer instead of the Supplier. This typically happens when the Supplier is not in a position to issue an e-Invoice—for example, if the Supplier is an individual not carrying on a business or is a foreign entity.
Under the latest e-Invoice Specific Guideline (Version 4.1), Buyers must issue self-billed e-Invoices in the following cases:
When to Issue Self-Billed E-Invoices
- Payments to Agents, Dealers, Distributors
- Purchases from Foreign Suppliers
- Profit Distributions (e.g. dividends)
- E-Commerce Transactions
- Payouts to Betting & Gaming Winners
- Purchases from Individuals (Non-Business)
- E.g. buying used goods from private individuals
- Interest Payments, except when:
- Paid to banks or licensed financial institutions
- Paid by employees to employers (e.g. staff loans)
- Paid to related Malaysian entities providing centralised treasury services
- Paid by foreign payors to Malaysian taxpayers
- Late payment charges issued by Malaysian businesses
- Insurance Claims or Compensation
- Capital Transactions such as share buybacks, redemption, or liquidation proceeds
Examples in Practice
- Buying cupcakes from a roadside stall (non-registered, handwritten receipt): No self-billed e-Invoice needed.
- Renting office space from 3 individuals: Self-billed e-Invoice needed for each landlord.
- Paying interest to a related company not offering centralised treasury services: Self-billed e-Invoice is required.
Need Help?
At HTL & Co., we assist clients in setting up the correct e-Invoice processes, including when and how to issue self-billed e-Invoices. If your business regularly deals with individuals, foreign vendors, or related-party interest payments, speak to our consultants today for compliance support.
