When stepping into the e-invoicing era, businesses must familiarise themselves with various types of e-invoices and understand which types of transactions or situations call for which types of e-invoices. There are several types of e-invoices available, such as normal e-invoices and consolidated e-invoices. Businesses must be able to identify and choose the best way to implement e-invoicing based on their specific circumstances and needs. In this article, we will provide you with an understanding of the concept of consolidated e-invoice and show you how it can streamline and simplify your invoicing process.
What is a consolidated e-invoice?
Suppliers may issue normal receipts or invoices and have the option to aggregate them into a consolidated e-invoice. This method enables suppliers to aggregate multiple receipts or invoices, even from different dates and involving various buyers, into a single consolidated e-invoice. It eliminates the necessity of issuing separate invoices for each transaction.
Consolidated e-invoices typically apply to certain business-to-consumer (B2C) transactions. In cases where buyers do not require an e-invoice, suppliers may issue a normal invoice to the buyers in accordance with current business practice. Subsequently, suppliers may aggregate these normal invoices and issue a consolidated e-invoice to support the transactions made. Furthermore, the Inland Revenue Board (IRB) has set a specified timeframe for the submission of consolidated e-invoices. According to the IRB’s guidelines, suppliers are required to submit consolidated e-invoices to IRB within seven calendar days after the month-end.
Creating individual invoices for each transaction is an extremely time-consuming task for organisations. Businesses may need to invest additional costs and require more resources to handle the invoicing process, which may potentially affect the overall business operations. Conversely, consolidated e-invoices can simplify and expedite the company’s billing process, effectively reducing the time spent on handling e-invoices while improving business efficiency.
Which industries are prohibited from issuing consolidated e-invoices?
According to IRB’s guidelines, certain industries are prohibited from issuing consolidated e-invoices. This also implies that these industries would have to issue individual e-invoices for each transaction. These industries include:
- Automotive;
- Aviation;
- Luxury goods and jewelry;
- Construction;
- Wholesalers and retailers of construction materials;
- Licensed betting and gaming; and
- Payment to agents / dealers / distributors.
In summary, consolidated e-invoice serves as a great way for businesses to streamline their invoicing processes. Have you ever wondered what steps should you take to ensure a successful transition to e-invoicing for your business? Subscribe to TaxPOD now to access decades of tax-saving knowledge at your convenience, anytime and anywhere. Visit https://taxpod.com.my/taxknowledge now!
Explore Our Knowledge Hub!
Discover a wealth of tax-related knowledge at our comprehensive Knowledge Hub. Whether you’re looking for in-depth articles, answers to frequently asked questions, or informative videos, we’ve got you covered. Visit the links below to explore each section:
Knowledge Hub: Explore now
Enhance your tax knowledge and stay up-to-date with the latest information by visiting our Knowledge Hub today.
