Self-Billed e-Invoice in Malaysia: When the Buyer Must Issue It

What is a self-billed e-Invoice?

A self-billed e-Invoice is an e-Invoice issued by the buyer instead of the seller. Normally the supplier issues the e-Invoice for its own sale. In some situations the seller cannot or is not expected to do it — a foreign supplier outside the Malaysian system, or a private person who does not run a business — so the responsibility moves to the buyer.

It is still a full e-Invoice. You submit it to LHDN (IRBM) through the MyInvois Portal or an API connection from your accounting system, LHDN validates it, and the validated e-Invoice carries a QR code or validation link. A PDF that someone types up and emails is not an e-Invoice by itself.

The self-billed family mirrors the normal one: there are self-billed invoices, credit notes, debit notes and refund notes. If your business is new to e-Invoicing, start with our e-Invoice readiness checklist.

When must the buyer issue a self-billed e-Invoice?

The buyer must issue one in the situations set out in paragraph 8.3 of LHDN's e-Invoice Specific Guideline. As of October 2026, they include situations such as:

Situation	What it can look like
Payments to agents, dealers or distributors	Commission paid to a sales agent who brings in orders
Goods or services from foreign suppliers	Imported stock, an overseas software subscription, a foreign freelancer's fee
Profit distributions, such as dividends	A company paying dividends, although some distributions need no e-Invoice at all
e-Commerce transactions	Payouts an online platform makes to the merchants selling on it
Pay-outs to betting and gaming winners	Licensed operators; casino and gaming-machine pay-outs are exempted until further notice
Individuals not conducting a business	Buying a used van from a private owner, or a one-off service from a private person
Interest payments, with exceptions	Interest a company pays to a private individual who lent it money
Claims, compensation or benefits paid by an insurer	The insurer issues it when paying out
Capital reduction, share redemption or buyback, return of capital, liquidation proceeds	A company paying capital back to its shareholders

Two rows need care. The private individual case applies only when no other self-billed situation fits. The interest case has exceptions in which the supplier issues the e-Invoice as usual: banks and lenders charging interest to the public, interest an employee pays to an employer, interest from a foreign payor, intra-group treasury interest, and late-payment interest or charges. Because the details matter, read the Specific Guideline for your exact case or ask your tax adviser.

Which self-billed cases come up most for SMEs?

For most small and medium businesses, three cases come up again and again:

• Overseas suppliers. Online advertising billed from abroad, overseas software subscriptions, a freelance designer or developer in another country, and imported stock or equipment. A foreign supplier normally does not issue a Malaysian e-Invoice, so you do.
• Private individuals. Buying a second-hand machine or vehicle from someone who is not in business, or paying a private person for a one-off job.
• Agents and dealers. Commission paid to agents, dealers or distributors who sell for you.

Just as important is what is not self-billed. Salaries are employment income, which needs no e-Invoice at all. And if you buy from a small local business that is exempt from e-Invoicing, it simply gives you a normal invoice or receipt. Under the Guideline, a normal receipt from an exempt supplier can be used as proof of your expense, so there is nothing for you to self-bill.

What are the deadlines for imported goods and services?

For imports, the Specific Guideline (paragraphs 10.4.8 to 10.4.9) sets clear deadlines:

Purchase from abroad	Self-billed e-Invoice due by	Example
Imported goods	The end of the second month after the month customs clearance is obtained	Cleared on 14 March, so due by 31 May
Imported services	The end of the month following the month of payment or the month you receive the supplier's invoice, whichever is earlier	Invoice received 18 April, paid 6 May, so due by 31 May

For services, the "whichever is earlier" part trips people up. If you pay first and the invoice arrives later, the payment month starts the clock. If the invoice arrives first and you pay weeks later, the invoice month starts it. Note both dates in your purchase records so the deadline is easy to check.

For goods, keep the customs clearance document with the supplier's invoice. The clearance date — not the order date or the shipping date — is the one that counts.

What do you need to issue a self-billed e-Invoice?

You need the right documents, the seller's details and a simple routine. Work through these steps:

1. Confirm the case. Check that the purchase is a self-billed situation and that your business is within e-Invoicing, not exempt.
2. Collect the documents. The supplier's invoice or agreement, proof of payment and, for imported goods, the customs clearance document.
3. Gather the seller's details. Name, address and identification details as the guideline requires. For a foreign supplier with no Malaysian tax identification number, follow the Specific Guideline on what to enter. For a private individual, collect only what you need and store it securely.
4. Prepare and submit. Create the self-billed e-Invoice in the MyInvois Portal or through your accounting system. The seller still appears as the supplier and your business as the buyer — you are simply the one issuing it.
5. Check validation. Make sure LHDN validates it and keep the validated copy with its QR code or validation link. Sending the seller a copy is good practice.
6. Record and file it. Post the purchase in your books, attach the e-Invoice and supporting documents, and keep them for seven years.

If you make a mistake, there are self-billed versions of the credit note, debit note and refund note, and the same principles apply — see our guide to cancelling or correcting an e-Invoice.

Can you combine self-billed e-Invoices into one each month?

Yes, if your business is in the final implementation phase and the interim relaxation period still applies. Businesses in that phase — annual turnover up to RM5 million, with an implementation date in 2026 — have a relaxation period until 31 December 2027, during which they may, among other things, issue consolidated self-billed e-Invoices.

Two cautions. First, the relaxation ends on 31 December 2027, so set up a process that can issue individual self-billed e-Invoices before then. Second, the relaxation periods for earlier phases ended in 2025, so larger businesses should not assume the same room. Outside the relaxation, check the Specific Guideline or ask your tax adviser before consolidating any self-billed e-Invoice. Consolidation for ordinary sales is covered in our article on consolidated e-Invoices and the RM10,000 rule.

Example: a Selangor company with overseas suppliers

Example: a Shah Alam homeware company has annual revenue of about RM4.2 million, so it is not exempt and falls in the final implementation phase. In one quarter it makes these purchases from abroad (ringgit amounts used for simplicity):

Purchase	Key dates	Amount	Self-billed e-Invoice due by
Online advertising from an overseas platform (services)	Card charged 31 March; invoice received 2 April	RM3,200	30 April (the payment month, March, is earlier)
Logo and packaging design by a foreign freelancer (services)	Invoice received 18 April; paid 6 May	RM2,500	31 May (the invoice month, April, is earlier)
Display shelving imported by sea (goods)	Customs clearance 14 March	RM18,000	31 May (end of the second month after March)

Its bookkeeper flags each overseas payment during the monthly bank reconciliation, matches it to the supplier's invoice and customs papers, and diarises the deadline. Because the company is in the final phase, it could combine some of these into a consolidated self-billed e-Invoice during the relaxation period. It chooses to issue them one by one so each purchase has a clean, matching record — a habit that still works after 31 December 2027.

The same company also buys a used delivery van for RM38,000 from a retiree who does not run a business. That is the private-individual case, so it issues a self-billed e-Invoice for the van too, following the guideline's requirements for that case.

Do exempt businesses issue self-billed e-Invoices?

No. As of October 2026, businesses with annual turnover or revenue below RM3 million are exempt from e-Invoicing (effective 1 September 2026), so they do not issue self-billed e-Invoices either, and no application to LHDN is needed. The exemption does not apply where a non-individual shareholder, a holding company, or a related company or joint venture has turnover of at least RM3 million — those businesses stay within the normal implementation timeline. If you are unsure, check with your tax adviser.

Even if you are exempt, keep proper records of overseas and private purchases: invoices, payment proof and, for imports, customs documents. If your turnover later reaches RM3 million, you must start e-Invoicing from 1 January of the second year after the year you reach it. Our RM3 million exemption guide explains who qualifies.

How WeCount helps

WeCount keeps your books every month and, as part of our LHDN e-Invoice support, flags purchases that may need a self-billed e-Invoice — overseas suppliers, private sellers and agents' commissions — together with the deadline for each. We match every self-billed e-Invoice to the supplier invoice, payment proof and customs documents, so your records stay complete for seven years. Where a case needs a tax view, we work alongside your tax adviser: regulated audit, tax-agent and professional accountancy services are delivered through appropriately authorised partners where required. See our monthly bookkeeping service.