Types of Invoices

Different types of invoices

Invoice

In Malaysia’s e-Invoice system, suppliers are required to send digital invoices to the LHDN to record sales transactions. These invoices follow a specific format set by the government. There are currently two versions of the invoice format: version 1.0 and version 1.1. Both versions have the same structure, meaning the way the invoice data is arranged is identical in both. However, the main difference between them is related to how the invoice is signed and verified.

In version 1.0, signature validation is turned off. This means suppliers do not need to attach a digital signature when submitting their invoices. While this version is simpler to use and suitable for early testing or smaller setups, it is only a temporary solution. LHDN has confirmed that version 1.0 will be removed in the future, although the official date for this change has not been announced yet.

In Version 1.1, retains the signature validation enabled. This means each invoice must be digitally signed using a certificate issued by an approved Certificate Authority, such as POS Digicert or MSC Trustgate. The supplier has to upload this certificate in the settings page of the e-Invoice system. This added step ensures that the invoice is authentic and has not been tampered with, making it more secure and trustworthy.

Credit Note

A Credit Note is a document issued by the supplier to make adjustments to a previously issued e-Invoice. It is used when there is a need to correct errors, apply discounts, or account for returned goods, without actually refunding money to the buyer. The purpose of a credit note is to reduce the value of the original invoice in a formal and trackable way.

In Credit Note v1.0, the signature validation feature is turned off. This means the supplier can send the credit note to LHDN without attaching a digital signature. While this version is easier to implement, especially during initial setup or testing, it is not as secure. Also, it is meant to be a temporary option. LHDN has stated that v1.0 will be phased out in the future, though an official end date has not yet been announced.

In Credit Note v1.1, signature validation is required. This means that each credit note must be digitally signed using a valid certificate issued by a Certificate Authority approved by LHDN, such as POS Digicert or MSC Trustgate. This added validation ensures the document is secure, authentic, and compliant with government standards.

Debit Note

A Debit Note is a document issued by a supplier when there is a need to increase the value of a previously issued e-Invoice. This usually happens when additional charges need to be added after the original invoice has been sent—for example, late fees, extra quantities delivered, or pricing adjustments. The debit note acts as a formal way to update and increase the invoiced amount.

In Debit Note v1.0, digital signature validation is not required. This means suppliers can issue and submit debit notes to LHDN without attaching a digital certificate. This version is generally easier to implement and may be useful for testing or initial stages of setup. However, this version will be phased out in the future, and LHDN will announce the official date when v1.0 will no longer be accepted.

Debit Note v1.1, on the other hand, requires signature validation. In this version, each debit note must be digitally signed using a certificate issued by an LHDN-approved Certificate Authority, such as POS Digicert or MSC Trustgate. The signed document helps confirm the identity of the sender and protects the integrity of the data.

Refund Note

A Refund Note is a document issued by a supplier to confirm that a refund has been made to the buyer. It is used in cases where the supplier returns money to the buyer—usually due to overpayment, product returns, or order cancellations. This document helps both parties keep accurate financial records and ensures transparency in the refund process.

In Refund Note v1.0, signature validation is not required. This means the supplier can issue and submit the refund note without digitally signing it. This version is often used during early integration or for testing purposes, as it’s easier to implement. However, it does not offer the same level of data protection and authenticity. LHDN has stated that v1.0 will be deprecated in the future, although no official end date has been announced yet.

In Refund Note v1.1, digital signature validation is required. Each refund note must be signed using a certificate issued by an LHDN-approved Certificate Authority, such as POS Digicert or MSC Trustgate. This signature ensures that the document is genuine and has not been altered, offering a higher level of security and trust.

Self-Billed Invoice

A Self-Billed Invoice is a type of e-Invoice that is issued by the buyer, rather than the supplier. This is only allowed in certain situations, such as when both parties have a prior agreement and the buyer has permission to generate invoices on behalf of the supplier. These conditions are outlined in Section 8 of the e-Invoice Specific Guidelines issued by LHDN.

In Self-Billed Invoice v1.0, signature validation is disabled. This means the invoice does not need to be digitally signed when submitted to the MyInvois system. While this version may be easier to use in the beginning or during testing, it lacks the verification layer that proves the authenticity of the document. LHDN has confirmed that this version will be phased out, and a future date will be announced when it will no longer be accepted.

Self-Billed Invoice v1.1, is the version that includes signature validation. It is considered the official and secure version supported by the MyInvois system. In this version, the buyer must digitally sign the invoice using a certificate issued by a recognized Certificate Authority, such as POS Digicert or MSC Trustgate. This ensures that the invoice is valid, has not been altered, and comes from a trusted source.

Self-Billed Credit Note

A Self-Billed Credit Note is a document issued by the buyer to correct or adjust a previously issued Self-Billed e-Invoice. It is used when there is a need to reduce the value of the original invoice—such as applying a discount, correcting an error, or accounting for returned goods—but without refunding money to the buyer. Instead of asking the supplier to issue a credit note, the buyer creates this document directly, based on an agreement between both parties.

In Self-Billed Credit Note v1.0, signature validation is disabled. This means the buyer can issue and submit the credit note without attaching a digital signature. This version is simpler to implement and might be suitable for testing purposes. However, LHDN has announced that this version will be phased out, and the exact date will be communicated later.

Self-Billed Credit Note v1.1, on the other hand, requires digital signature validation. The buyer must sign the credit note using a certificate issued by an LHDN-approved Certificate Authority, such as POS Digicert or MSC Trustgate. This ensures that the document is authentic and has not been altered, and adds a layer of security to the transaction.

Self-Billed Debit Note

A Self-Billed Debit Note is a document issued by the buyer when there is a need to increase the amount of a previously issued Self-Billed e-Invoice. This might happen if additional charges need to be added after the original invoice was created—for example, price adjustments, extra services, or late fees. In self-billing arrangements, the buyer issues such documents instead of the supplier, based on a mutual agreement.

In version 1.0, signature validation is turned off. This means the buyer can submit the debit note to LHDN without signing it digitally. This version is easier to implement and may be used during testing or early stages of integration. However, this version will only be supported temporarily. LHDN has stated that v1.0 will be deprecated, and the cutoff date will be announced in due course.

In version 1.1 requires the buyer to digitally sign the debit note using a certificate issued by an approved Certificate Authority, such as POS Digicert or MSC Trustgate. This added layer of security ensures that the document is authentic and has not been tampered with after being issued.

Self-Billed Refund Note

A Self-Billed Refund Note is a document created by the buyer to confirm that a refund has been made. This type of note is used in situations where money is returned to the buyer—for example, due to overpayment, order cancellations, or returned goods. Unlike regular refund notes issued by suppliers, a self-billed refund note is prepared by the buyer, typically under a pre-agreed self-billing arrangement between both parties.

In version 1.0, signature validation is disabled. This means the buyer can submit the refund note to LHDN without attaching a digital signature. This version may be used for testing or during early implementation stages, as it is easier to work with. However, it does not offer full data security and authenticity. LHDN has stated that this version will be deprecated, and a final cutoff date will be announced later.

In version 1.1, digital signature validation is required. The buyer must sign the document using a certificate issued by a recognized Certificate Authority, such as POS Digicert or MSC Trustgate. This digital signature helps ensure that the refund note is authentic, untampered, and issued by a verified party.