E-Invoice Guide: When is Self-Billing Allowed?

With the implementation of e-Invoicing, many businesses are uncertain whether self-billing is applicable in specific situations.

The answer largely depends on the nature of the supplier and the transaction.

The primary consideration is: Whether the supplier is carrying on a business activity

When Self-Billing is NOT Applicable

Self-billing is generally not allowed when dealing with:

• Registered businesses (Sdn Bhd / Enterprise)
• Freelancers with ongoing business activities
• Company-owned rental arrangements
• Corporate subcontractors

When Self-Billing is Applicable
Self-billing may be used when dealing with:

• Individuals earning one-off or non-recurring income
• Individual landlords (non-business)
• Temporary or ad-hoc individual service providers

Special Considerations
Certain transactions require additional assessment:

• Foreign suppliers: subject to cross-border tax rules
• Employees / staff claims: treated as payroll, not self-billing

Conclusion
The applicability of self-billing depends on distinguishing between:

• Business transactions
• Non-business individual transactions

Businesses should evaluate each case carefully to ensure compliance with tax regulations.

**Data Updated on 01.04.2026