Hey, young entrepreneurs and SME owners! Big news from the Inland Revenue Board of Malaysia (IRBM)! Starting 1 July 2025, all businesses—including yours—must use e-Invoicing for insurance-related transactions, except for small and medium enterprises with annual sales between RM150,000 and RM500,000, the implementation date of mandatory use of e-invoices has been postponed to 1 January 2026. Such as employee benefits and group insurance premium payments, this article will break it all down for you in a simple and easy way!
What is an E-Invoice?
In simple terms, an e-Invoice is the digital version of traditional paper invoices. It records key details of a transaction between a seller and a buyer, such as:
- Supplier and buyer details
- Description and quantity of goods/services
- Price breakdown (pre-tax amount, tax amount, and total price)
Why Use E-Invoicing? It’s faster, safer, and more efficient! No more worries about losing paper invoices or making manual errors!
How Does E-Invoicing Work for Insurance Transactions?
- Your insurance premium payment details will be submitted to IRBM, and once validated, an e-Invoice will be generated. Keep it safe—you’ll need it for tax filing!
- Every e-Invoice will come with a QR code, which you can scan to check details on the MyInvois portal.
- If your email details are correct, you will receive the e-Invoice via email. Alternatively, you can download it through your insurer’s app or website.
- If IRBM doesn’t validate your invoice before the end of the month, you won’t receive an e-Invoice—which means your insurance premium might not be tax-deductible!
Didn’t Receive Your E-Invoice?
Here’s Why: Your information might be incorrect or missing! IRBM requires the following details for verification:
- Personal or Business Information – NRIC, passport number, or Business Registration Number (BRN)
- Tax Identification Number (TIN) – Corporate TIN starts with “C,” personal TIN starts with “IG”
- Sales and Services Tax (SST) – If your business is SST-registered, you must provide this information
- Contact Information – A valid phone number is required for IRBM to reach you
- Mailing Address – Ensure this is updated so you can receive e-Invoices without issues
What is Self-Issued E-Invoicing?
Insurance companies will issue e-Invoices directly for both individuals and businesses. This will simplify claims processing and ensure that all transactions are fully digitized, saving time and effort!
How Do E-Invoices Benefit SMEs?
✅ Easier Tax Compliance – All insurance payments are recorded and can be directly deducted during tax filing, reducing errors.
✅ No More Hunting for Lost Invoices – Accounting is now more organized and efficient.
✅ Instant Verification – E-Invoices reduce disputes and errors since they are validated in real-time.
✅ Immediate Issuance – No need to wait for physical invoices or postal deliveries—instant digital access!
What You Need to Prepare:
✔ Check Your Information – Ensure that your TIN, BRN, and SST details are accurate and up to date.
✔ Register on MyInvois – If you haven’t already, sign up ASAP!
✔ Verify Your Contact Details – Your email and phone number must be correct to receive e-Invoices.
✔ Adjust Your Accounting System – Work with your finance team to integrate e-Invoicing into your business.
✔ Train Your Team – Ensure that your finance and HR teams understand the new process and are prepared for the transition.
Act Now for a Hassle-Free Future!
E-Invoicing regulation may seem complicated at first, but it’s actually a great opportunity to streamline operations and improve efficiency. By preparing early—updating your information, registering on the system, and training your team—you’ll be ready to transition smoothly!
Young entrepreneurs, the digital age is here, and staying ahead means adapting quickly. Check your insurance transactions, reach out to your insurer, and get ready for the e-Invoice era today!
