E-Invoice is a digital representation of a transaction between a supplier and a buyer. E-Invoice replaces paper or electronic documents such as invoices, credit notes, and debit notes. The details of the supplier and buyer, item description, quantity, price excluding tax, tax, and total amount are all included in an e-Invoice, which records transaction data for daily business operations.
Benefits of E-invoice
1. Reduce manual efforts and human errors
Unified invoicing process through creation and submission of transaction document & data electronically
2. Facilitate efficient tax filing
Seamless system integration for efficient and accurate tax reporting
3. Streamline operational efficiency
Enhanced efficiency and significant time and cost savings
4. Digitalise tax and financial reporting
Aligns financial reporting and processes to be digitalised
Overview of e-invoice workflow
Step 1 : Issuance of e-invoice
When a sale or transaction is made including e-invoice adjustments, the supplier creates an e-Invoice and shares it to IRBM via Mylnvois Portal or API for validation.
Step 2 : Validation of e-Invoice
IRBM validation is performed in near real-time, ensuring that the e-invoice meets the necessary standards and criteria. Once validated, the supplier will receive a Unique Identifier Number from IRBM via Mylnvois Portal or API. The Unique Identifier Number will allow traceability by IRBM and will reduce instances of tampering with the e-invoice.
Step 3 : Notification of validated e-Invoice
IRBM will inform both the supplier and buyer once e-Invoice has been validated via MyInvois Portal or APIs.
Step 4 : Sharing of e-Invoice
Upon validation, the supplier is obliged to share the validated e-Invoice which is embedded with a QR code with the buyer. The Offcode can be used to validate the existence and status of the e-invoice via Mylnvois Portal.
Step 5 : Rejection or cancellation of e-invoice
Upon issuance of e-invoice, a stipulated period of time is given to:
– Buyer to request for rejection of the e-Invoice
* Supplier to perform cancellation of e-Invoice
Rejection request or cancellation must be accompanied by justifications.
Step 6 : Mylnvois Portal
Supplier and buyer will be able to obtain a summary of the e-Invoice transactions via Myinvois Portal.
To know more, refer here.