E-Invoice Accounting: Budget 2025 Updates and Its Implementation Mechanism

07 Nov, 2024, Wyndham Grand Bangsar Kuala Lumpur

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TAN KOK TEE
DBA, MBA-Finance, FAIA, MIPA, MCCS, ACTIM,
International Accountant (UK),
Public Accountant (Aust.)
Certified Company Secretary.
HRDF Certified Trainer
Registered GST Agent.

 

MR. TAN KOK TEE has 40 years of working experience in Accounts & Financial, Strategic and General Management field. He has held a variety of leadership and senior management roles in various organizations, starting in the Accounts & Finance Department until CFO level and the last being Group Chief Executive Officer. More than half of these times were spent in the Manufacturing, Marketing & Distribution and Services organizations.

 

He is a Fellow member of the Association of International Accountants, UK; Member of the Institute of Public Accountants, Aust.; Certified Commercial Accountant, (M); Member of the Chartered Tax Institute of Malaysia; Member of the Malaysia Associations of Company Secretaries (M) and a Gold Mastery Holder in Reinventing Strategic Planning and Management from the Haines Centre for Strategic Management, sponsored by University of San Diego, USA.

 

He is also a Certified Trainer with PMSB’s (HRDF) Train The Trainer Certificate since 2009, a GST Agent registered with MOF & Holder of the GST MyGCAP certificate from RMCD and a Life Member of the Malaysian Institute of Directors.

 

Mr. Tan has been involved in Advisory, Training and Facilitation since beginning 2009. To-date he has conducted about 400 training workshops throughout Malaysia on topics on Budgeting & Cashflow Planning; GST; SST; Practical Accounting for Accounting Staffs; Reading, Analyzing and Interpreting Financial Statement; Accounting and Finance for Non-Finance Managers; Customers Credit Evaluations and Collection Strategies; Incoterms, LC Operations and Trade Financing; Reinventing the Strategic Planning and Management and Financial Statement Hands On Application to MBRS, for both in-house as well as public.

 

Among the organizations that Tan Kok Tee has been providing training for, include Government Authorities, Chamber of Commerce, Government Link Companies, Banks, Malaysian Institute of Accountants, Chartered Institute of Management Accountants, CPA Australia, Malaysian Institute of Chartered Secretaries and Administrators, Selangor State Human Resource Development Centre (SHRDC), Negeri Sembilan State Skills Development Centre (NSSDC), Penang Skill Development Centre (PSDC), NGOs and many others public training providers.

 

His other clients include Shin Yang Group, MIRI, Bintulu Port, Deleum Bhd., Boustead Plantation Bhd., Takahata, FBK Manufacturing, Brothers Industries, Integrated Logistics, Mega Logistics, Chung Hwa Picture Tubes, Ohara Melaka, Safran Aerospace, NEC Corp. of Malaysia, Kobe Precisions, Tecktronic & Sons Holdings, Julie’s Biscuits, Ornapaper Melaka, Sunway University, Sime Darby Properties, Lion Group and many more.

 

To-date Mr. Tan has trained more than 15,000 Executives. He combines a wide range of practical and hands-on training experience in lively and challenging interactive training sessions.

 

Venue Details

Wyndham Grand Bangsar Kuala Lumpur
1, Jalan Pantai Jaya Tower 3, Kuala Lumpur, 59200 MY,
Phone : +60322981888

https://wyndhamgrandbangsarkl.com.my/

Contact us

Juliany,
03 2283 6109
juliany@ipa.com.my

Phoebe,
03 2283 6100
phoebe@ipa.com.my 

FOR CUSTOMISED IN-HOUSE TRAINING
Jane,
03 2283 6101
Jane@ipa.com.my

ADDRESS 
A-28-5, 28th Floor, Menara UOA Bangsar, 
No.5, Jalan Bangsar Utama 1, 
59000 Kuala Lumpur
www.ipa.com.my

FOCUSING ON
  • Fundamentals and Updates via Budget 2025
  • E-Invoice Mechanism
  • Application of E-invoice for Accounting of Business Transactions
  • Readiness for Implementation.
OBJECTIVES

The application of E-invoice in billings of commercial activities and the capturing of cost in Accounting and for tax purpose as announced by LHDN to be implemented in phases from August 2024 onwards, is not solely a tax matter of about how much tax to pay or when to do your tax filing. A major part of it is all about your Accounting for the Revenue and Cost of the organization and the Business Operation at large, such as Sales, Purchasing, HRM and all other operating staffs. When to account for the cost and revenue and when to issue e-invoice are all separate matters.

The 6 months grace period given from the mandatory implementation date for the 1st phase is going to be over end January 2025 and unless extended, full implementation is to be complied. Fine between RM200 to RM20,000, or imprisonment for 6 months or both may commence after the grace period. It has also been reported that despite the grace period given, the 1st month of implementation, August 2024, saw more than 20 million e-invoice submitted to the IRBM for validation.

Then the 2nd phase group comes in w.e.f. 1/1/2025. The number of companies in this 2nd phase group could be at least 100 times bigger than the 1st group. While they may be also enjoying the 6 months period ending 30/6/2025, it will be better to start implementing and get the learning curve up than to cramp everything at the last minute.

Hence this course is to provide the necessary content of E-Invoice mechanism and to equip all Accounting and Other Operational Staffs on the organization’s requirement to implement E-Invoice as per LHDN’s requirement for their various business transactions.

The need to know when to issue an E-Invoice to customers to capture the revenue, when to issue Self-Bill Invoice to capture the cost, when suppliers are not required to issue E-invoice but are required to issue Consolidated E-Invoice, etc. are all essential knowledge and skills that all staffs in the organization’s accounting and other departments will need to know and possess.

It is therefore essential that all the Accounting and other Operational function staffs, get equip with the E-Invoice mechanism in our daily Accounting and Business operation.

AFTER ATTENDING THIS COURSE YOU WILL RETURN TO YOUR JOB…
  1. Understanding what actually is E-Invoice and what does it entail?
  2. Gaining awareness of what are the updates via Budget 2025.
  3. Understanding the mechanism of E-Invoice.
  4. Application of E-Invoice for different types of Business & Accounting Transactions.
  5. Preparing and getting ready for E-Invoice implementation.
  6. Obtaining guidance on actions to be taken to capture revenue and cost for your business operation and for tax purposes.
WHO SHOULD ATTEND
  • Entrepreneurs, SME Business owners & Directors.
  • Accountants, Accounts Executives and all operational Accounting Staffs,
  • Company Secretaries and Secretarial Assistance
  • Other Functional (Sales, Purchasing, Human Resource, etc.) Managers, Executives and Staffs.
  • All other persons who are involved in and/or interested to learn about E-Invoice mechanism.
METHODOLOGY
  • Interactive Lectures and Discussion
  • Questions & Answers
COURSE CONTENT
9:00

FUNDAMENTALS AND UPDATES VIA BUDGET 2025

  • What is E-Invoice what does it entail
    in comparison with current invoicing practice?
    • What is new in the Budget 2025 announcement.
    • Worldwide development of E-invoice and its implication on tax.
    • Malaysian implementation threshold and phases and its partial and full mandatory implementation dates.
    • What to do during the first 6 months grace period.
    • When to issue E-Invoice for the transactions.
    • E-Invoice Processes and steps.
    • Compulsory and Optional information to be disclosed for E-Invoice
    - Compulsory fields – what to put in
    - Optional fields – purpose of putting in.
    - Transaction Classification Code
    - Tax Type including – B2B service tax exemption, Entertainment duties,
    LMW and FZ companies
    • Additional Compulsory and Optional information to be disclosed for:
    - Cross border transactions
    - Drop Shipment
  • Scope of coverage: - (i) Parties, (ii) Documents and (iii) transactions
  • Parties and activities exempted.
  • When to apply General TIN number and on who.
  • Impact of E-Invoice on business operation after full implementation by IRB.
  • Scenarios of one party implemented E-Invoice and dealing with other parties
    have not.
  • Scenario where one party is exempted whereas the other party is not.
  • Penalties for non-compliance


10.45

E-INVOICE MECHANISM

  • Two Transmission Mechanism Processes and Steps.
    - IRB’s MyInvois model (cloud based)
    -Brief Walk-through process on the issuance of various documents.
    - Application Program Interface (API) model
    -Walk-through process using ES2 Cloud Accounting System.
  • Salient Points of E-Invoice including:
    - E-Invoice Creation and submission to IRB for validation
    - Application of UTC time. (Coordinate Universal Time)
    - Error in Validation, Rejections and Cancellation
    - Notification of Validation, Rejections and Cancellation by IRBM
    - Sharing of E-Invoice to customer
    - Window time for rejection/cancellation of invoice by buyer
    - Storing of E-Invoice in IRB’s porter and its dash-board services.

1:00 Lunch
2:00

APPLICATION OF E-INVOICE FOR ACCOUNTING OF BUSINESS
TRANSACTIONS

  • Issuance of E-Invoice:
    - Individual transaction E-Invoice
    - Consolidated transactions E-Invoice
    - Industries where consolidated E-Invoice is not allowed
    - Self-Billed E-Invoice for specific situations such as payment of commission, payment of interest, e-commerce, imports, etc.
    - Situation where Consolidated Self-Billed is allowed
    - Business transactions under periodic basis
  • E-invoice treatment for:
    - Reimbursement and Disbursements with E-Invoice and without E-Invoice.
    - Billing of Penalties charges
    - Employment perquisite and benefits, etc.
    - Employees Claims –Mileage, Travelling and Accommodation allowance, General
    Outstation allowance, Entertainment, Hotel, Tolls, Parking, Telephone, Medical, Overseas Expenses, etc.
    - Salary in lieu of notice matters.
    - Import and export transactions
    - Commission payment to agents, dealers and distributors
    - Loyalty and Volume Rebates / discounts
    given to customers
    - Interest received from Banks
    - Interest charge to employees’ loan/advances
    - Interest payment to Banks, HP companies.
    - Sales with trade-ins like car, goldsmith, etc.
    - Profit distribution
    - Foreign income remit back to Malaysia
    - Rental or expenditure incurred from parties exempted from e-invoice.
    - E-Commerce treatment
    - Utility Bills under Landlord’s name
    - Giving samples.
    - Consignment sales – Domestic and overseas
    - Sending of goods to be kept in overseas warehouses
    - Sales of cash vouchers
    - Issuance of cash vouchers on target purchase
    - Payment to Foreigners who are non-employees
    - Sponsorship for company events, like annual dinner for goods and cash.
    - Pay for training and allowance for customers’ staff
    - Inter-branch sales
    - Advance payment to suppliers.
    - Received Insurance compensation
    - Disposal of total damaged goods after insurance compensation.
    - Recoup of insurance claims from the fault party’s insurance.
    - Developer pays legal fees, stamp duties, etc. on behalf of buyers.
    - Developers pays guarantee rental to property buyers,
    - Money Lending, and
    - Many more other situations
    - Sharing of past training Q & A to participants for their own readings and reference.


3:45

READINESS FOR IMPLEMENTATION.

  • Avenue/Guide for Taxpayers familiarization
  • Steps to take – What should you do now
    - Employees handbook update or development
    - Gap arising and resolution on the current invoice, D/N and C/N issuance process vs. the E-Invoice requirement processes
    - Policies and procedures for different basis of E-Invoice issuance.
  • Grants and Tax incentives available for E-Invoice implementation for MSME
  • Change Management

5:00 End of Course