A 72-Hours Grace Period for Adjustments and the Role of Debit Notes and Credit Notes
The e-Invoicing system will be mandatory for businesses with a turnover of RM100 million or more effective August 2024. It will be rolled out to all businesses in July 2025.
This article discusses the amendment of e-invoices in Malaysia. A crucial aspect of this amendment is the 72-hours grace period, which allows businesses to make adjustments to their e-invoices within 72 hours of issuing the original invoice. This grace period can be used to rectify any errors or discrepancies in the invoice. It is important for businesses operating in Malaysia to understand how this grace period works and how to utilize debit notes and credit notes in order to maintain accurate and compliant invoicing practices.
Here is a more detailed explanation of the 72-hours e-Invoicing grace period:
- Businesses can reject or request cancellation of an e-invoice within 72 hours of issuing the original invoice.
- After this period, modifications to e-invoices are not allowed.
- If any changes are required after 72 hours, businesses must issue a new invoice, debit note, credit note, or refund.
- It is important to maintain clear records of these adjustments and follow the relevant regulations to ensure compliance with the IRB’s guidelines.
Buyer Requests Rejection:
- Within 72 hours of receiving an e-invoice, the buyer can request its rejection.
- When buyer initiating rejection request, the seller will receive a notification.
- The seller must approve the buyer’s request for rejection before the e-invoice can be cancelled.
- If the seller does not approve the buyer’s request for rejection, the e-invoice will automatically be considered valid after 72 hours.
Seller Perform Cancellation:
- The seller can also initiate a cancellation of the e-invoice within 72 hours.
- If the seller cancels the e-invoice, the buyer will no longer be required to pay the amount stated on the invoice.
- After 72 hours, the e-invoice will automatically be considered valid.
- Any further amendments to the e-invoice will require a debit or credit note.
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Top 5 Questions Asked About E-Invoicing
- Can e-Invoices be cancelled after submit to LHDN? Yes, e-Invoices can be cancelled within 72 hours of issuance. To cancel an e-inovice. the supplier / customer must submit a cancellation / rejection request to buyer / seller within 72 hours via MyInvois Portal.
- Does e-invoice allowed for editing of information after verified by LHDN? No, the supplier would need to cancel the e-invoice (Refer Q1) and reissue another new e-invoice.
- What details are needed for an e-invoice cancellation/rejection request? The cancellation / rejection request should specify the reason, which can include incorrect invoice data in any field (e.g., SST number, business registration number, any business-related information, etc).
- What if the seller/buyer doesn’t approve my request for amendment/cancellation? After the 72-hours timeframe, the status of the e-Invoice will automatically change to “Valid”, and any further amendments will require a Debit/Credit Note.
- Can I extend the time to adjust an e-invoice? No, as per IRBM guidelines, there is a 72-hours timeframe for rejection / cancellation of e-invoice. If this time is exceeded, any adjustments will require the issuance of a new invoice, debit note, credit note, or refund.
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