Understanding Deposit e-Invoice at a Glance

Refundable or non-refundable? The handling method makes all the difference!

Refundable Deposit

• Examples: rental deposits, security deposits, or guarantee deposits that may be fully refunded later (provided there’s no breach or damage).

e-Invoice Treatment:

• These deposits are not income, as they are temporarily held for the customer.
• No e-Invoice is needed upon receipt — a standard receipt is sufficient.
• If any part is forfeited due to breach or damage, issue an e-Invoice for the forfeited amount.

Non-Refundable Deposit

• Examples: Contractual deposits, such as a 50% non-refundable down payment or deposits applied toward the final payment.

e-Invoice Treatment:

• A non-refundable deposit is recognized as confirmed income.
• An e-Invoice must be issued upon receipt of the payment.
• A second e-Invoice should be issued when the balance is paid or the service is completed.

Example:

• e-Invoice 1: Deposit 50% (issued upon payment)
• e-Invoice 2: Balance 50% (issued upon completion or delivery)

 **Note: An Official Receipt serves only as a payment acknowledgement and cannot replace an e-Invoice.

FAQs

Q: A landlord deducts part of a refundable deposit for property damage. Is an e-Invoice required?

A: Yes. The deducted amount is treated as income and requires an e-Invoice.

• If the landlord is a business, they issue it.
• If the landlord is an individual and the tenant is a business, the tenant issues a self-billed e-Invoice.

Q: What about instalment payments (e.g., beauty packages or membership plans)?

A: e-Invoice issuance is required for any non-refundable payment.

• Issue one e-Invoice for the initial payment,
• and separate e-Invoices for each subsequent instalment.