E-Invoice: Transactions That Require Self-Billed E-Invoice

Under Malaysia’s E-Invoice framework, certain prescribed transaction types require the buyer to issue an e-Invoice on behalf of the supplier (Self-Billed E-Invoice). The following outlines the main applicable scenarios:

1. Mandatory Issuance (Consolidation Not Allowed)

The following transactions must be self-billed on a per-transaction basis and cannot be consolidated:

• Payments to agents, dealers, or distributors (ADD)
• Purchases of goods or services from foreign suppliers
• Distribution of dividends by non-listed companies (pursuant to Section 108 of the Income Tax Act)
• E-commerce transactions (issued by platform operators under applicable models)
• Payouts from gaming or betting activities
• Share buybacks or redemption of shares

2. Permitted Issuance (Consolidation Allowed Under Conditions)

The following transactions may be self-billed, and consolidation is allowed subject to conditions:

• Transactions with individuals not carrying on a business
• Interest payments to the general public
• Insurance claim payouts to individuals or government entities

3. Exceptions for Interest Payments

For interest-related transactions, the following do not qualify for Self-Billed E-Invoice, and the supplier must issue the e-Invoice:

• Businesses providing loans to the public and earning interest
• Interest paid by employees to employers
• Interest paid by foreign payers to Malaysian taxpayers
• Interest paid to related companies providing treasury services
• Late payment interest imposed by Malaysian taxpayers

4. Summary

The core principle of Self-Billed E-Invoice is that it applies to prescribed scenarios where the buyer is required to issue the e-Invoice on behalf of the supplier.
However, not all similar transactions qualify. Businesses should assess the nature of each transaction carefully to ensure full compliance with E-Invoice requirements.

**Data updated on 30.4.2026