E-invoice 2025: Common Mistakes to Avoid with Self-Bill E-invoice

Post title 'Avoid These Mistakes (Self-Bill E-invoice FAQ)' on a green banner overlaying thumbnail of Bispoint E-invoice 2025 trainer

As a Malaysian business owner, have you ever wondered, “When exactly do I need to issue a self-billed e-invoice? Do I need one even when making a purchase?” 🤨

In this quick FAQ guide, we’ll walk you through the dos and don’ts to stay compliant when it comes to self-bill e-invoicing.

Here are some common questions we’ll clarify:

📌 Do I need a self-billed e-invoice for staff commissions?
📌 What about payments to a part-time accountant?
📌 How should I handle medical claims for employees?
📌 Do staff reimbursements require a self-billed e-invoice?

Self-Bill E-Invoice: What You Need to Know

1. Do I need to issue a self-billed e-invoice for staff commissions?

No. Any employment-related payments, such as allowances or commissions, do not require self-billing or e-invoicing. These payments are already covered under Form E.

2. Do I need to issue a self-billed e-invoice if I am hired as a part-time accountant?

It depends.

If you received an offer letter, the company should include you in Form E, as part-time employees are considered company staff.
If you are a freelancer, you are considered a business entity, even if you are not registered with SSM. You can issue an e-invoice to your client under your personal name.

3. How should staff claim medical or body check-up fees?

Employees must obtain an e-invoice under the company’s name when claiming medical expenses. If that’s not possible, the e-invoice should at least be under the staff member’s name. It’s best to outline this requirement in your staff handbook for clarity.

4. Do staff reimbursements require self-billing?

No. Staff claims should not be processed through self-billing.

Instead, ask your staff to request an e-invoice in the company’s name when making business-related purchases. Many retail shops now provide a QR code for customers to enter company details and generate an e-invoice. If that option isn’t available, the e-invoice should at least be under the staff’s name.

5. What if I can’t obtain an e-invoice at all?

If your suppliers or vendors do not issue e-invoices, you have two options:

Find a different supplier that complies with e-invoicing requirements.
Rely on current tax guidelines. According to LHDN, tax deductions are still allowed for purchases without an e-invoice – for now. However, this policy may change in the future, so it’s best to start working with e-invoice-compliant vendors whenever possible.