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Guide on Tax Invoice in Malaysia

Updated: Jun 30

Guide on Tax Invoice in Malaysia | Bestar
Guide on Tax Invoice in Malaysia | Bestar

Guide on Tax Invoice in Malaysia

What is a Tax Invoice in Malaysia?

A tax invoice is a document issued by a seller to a buyer that adheres to Malaysia's Sales and Services Tax (SST) system. It essentially functions as a receipt with additional details for tax purposes.

What Needs to be Included in a Tax Invoice?

There are mandatory particulars that a tax invoice must include:

  • Prominent display of the words "tax invoice"

  • Invoice serial number

  • Date of issuance

  • Seller's information: Name (or trade name), address, and SST identification number

  • Buyer's information: Name and address (not required for simplified invoices)

  • Description of goods/services supplied

  • Quantity or volume of goods/services (e.g., liters, kilograms, hours)

  • Any discounts offered

  • Breakdown of charges:

  • Total amount payable excluding tax

  • SST rate

  • Total SST amount (shown separately)

  • Total amount payable including SST

Optional details can include terms and conditions of sale and payment information.

Full vs. Simplified Tax Invoices

There are two main invoice types:

  • Full Tax Invoice: A standard invoice used for most sales transactions and required by law for registered businesses.

  • Simplified Tax Invoice:  An abbreviated version typically used by businesses issuing high volumes of invoices, like supermarkets or gas stations. It may omit the buyer's details and forego separate breakdowns of price and tax for each item.

Issuing Tax Invoices

By law, invoices must be issued within 21 days of the sale. While not mandatory yet, the Malaysian government is encouraging a shift towards e-invoicing for improved efficiency.

Resources for Further Information

For a more in-depth look, you can refer to the following resources from the Malaysian government:

Guide on Tax Invoice in Malaysia

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