Frequently Asked Questions

1. What is an e-Invoice?

An e-Invoice is a digital transaction record validated by LHDN (Inland Revenue Board of Malaysia). It replaces the traditional invoice document for tax reporting purposes and contains details such as seller, buyer, items, amount, tax, and validation information.

2. Is an e-Invoice the same as an invoice?

No. An invoice is a document issued by a business to request payment from a customer. An e-Invoice is the LHDN-validated version of that transaction record.

Your workflow:

Create Invoice
        ↓
Submit to LHDN
        ↓
Validated e-Invoice

3. Do I need to create an invoice before submitting an e-Invoice?

Yes. Your invoice acts as the source document. Once the invoice details are completed, the system can submit the transaction to LHDN for e-Invoice validation.

4. Can I issue an e-Invoice if my customer has not paid yet?

Yes. Payment status does not affect e-Invoice submission. An invoice can be issued and validated even if the customer has not made payment yet.

Example:

Invoice Status: Issued
e-Invoice Status: Valid
Payment Status: Unpaid

5. Do I need to issue a receipt after payment?

Not necessarily. A receipt is only a payment acknowledgement. This system focuses on invoice generation and e-Invoice compliance.

You can simply update the invoice payment status after receiving payment (refer to Q7).

6. What happens if I made a mistake in an e-Invoice?

Depending on the situation, you may:

• Cancel the e-Invoice within the allowed cancellation period, or
• Issue a Credit Note e-Invoice to reduce the original transaction value (coming soon)

7. Can I track unpaid invoices?

Yes. Each invoice can have a payment status:

• Unpaid
• Partially Paid
• Paid
• Overdue

This helps businesses monitor outstanding payments.

8. Who can use this system?

The system is suitable for businesses that need to create invoices and comply with Malaysia's e-Invoice requirements.