What is Tax Invoice? How to issue Tax Invoice?

Tax invoice is standard format invoice required under GST system. All companies who have registered with Royal Customs Malaysia (RMC) must issue Tax Invoices to their customers.

Failure to issue CORRECT Tax Invoice may result in fine & penalty of not more than RM300,000 or imprisonment of not more than 2 years or both.

A GST-registered company must have a valid Tax invoice from the supplier in order to claim back the GST they have paid on the purchase for their business. A tax invoice is the primary evidence to support an Input Tax Credit claim.

The name of Profoma invoice, Temporary invoice or Sale invoice are not allowed to be used by the registered companies.


When to issue Tax Invoice?

Tax invoice must be issued within 21 days from the time of the supply (means date of goods delivered or services rendered).
Tax invoice is not required for Zero-Rated Supply and also cannot be issued for supply of second-hand goods and imported services.


Particulars to be shown in the tax invoice are as follows:

  • Words of Tax Invoice’ must be clearly stated
  • Invoice serial number
  • Date of the invoice
  • Name, address & GST Registration Number of the Registered Company
  • Name & address of the customer
  • Detailed description of the goods and/or services supplied
  • Quantity of the goods and/or services supplied
  • Discount, if any
  • Total sale amount before GST
  • Rate of tax (6%)
  • Total GST charged
  • Total sale amount including GST
Sample of Tax Invoice by NBC Group

Click here to view Large Image

The Director General of Customs may upon request allow the invoice to be varied from the above whether in term of particulars in the invoice or issuance of other type of invoice e.g. simplified tax invoice.


Do not amend your supplier’s tax invoice

If a supplier sends you an invoice on which the GST is incorrectly calculated, do not alter it!

The tax invoice, which does not show the right amount of GST, is not a valid tax invoice and RMC could therefore disallow you to claim the GST paid, of which you may have paid incorrectly!

Just ask your supplier to re-issue the tax invoice with correct amount of GST stated.


What is Simplified Tax Invoice?

Simplified tax invoice which does not have the name and address of the recipient, the maximum of input tax to be claimed must not exceed RM30.00 (6% GST).

If the recipient wants to claim the full amount of input tax (more than RM30.00), then he must request for his name and address to be included in the simplified tax invoice.

Director General of RMC may allow the simplified tax invoice to be issued containing:

  • Name (or trade name), address and GST Registration number of the Registered Companies
  • Date of invoice
  • Invoice serial number
  • Detailed description of the goods and/or services supplied
  • Quantity of the goods and/or services supplied
  • Total sale amount before GST
  • Rate of tax (6%)
  • Total GST charged
  • Total sale amount including GST
There are 4 comments for this article
  1. Jean at 9:30 am

    Good day. Do my tax invoices need to go through Customs approval first before deciding, that is the tax invoice format that I will use starting from 1 April 2015? Or I can proceed with format as long as it fulfills the requirement from Customs? Thanks.

  2. Kelly at 3:40 pm

    Do i need to tax customer GST due to PO receive on March but stock deliver on April.

    please reply.
    Thanks

    • Angelina Ariel Author at 11:39 am

      Yes, Kelly, you need to charge GST based on the date of delivery.

  3. FOO VOON SEONG at 4:37 pm

    can i issue a tax invoice with hand writting