The Lembaga Hasil Dalam Negeri (LHDN) released a set of Frequent Asked Questions (FAQs) on December 22, 2023, specifically tailored for the telecommunication industry. Here's a breakdown and summary of key points regarding e-invoice implementation:

How telemunication service provider reflect the adjustments in relation to the previous bills/statement after the implementation of e-Invoice?
Telecommunication service provider is allowed to make adjustment to the previous bill/statement by either:

1. Reflecting the adjustment in the next cycle bill/statement; or
2. Issuing credit note/debit note/refund note e-Invoice,

In accordance with the current business practice.

Telecommunication service provider may sell prepaid plans to agent or trading company whom would onward sell the said plan to consumers. And the telecommunication service provider will issue invoices to agent or trading company for the sale of prepaid plan.

Upon implementation of e-Invoice, will the same billing/invoicing arrangement continue to apply or will the telecommunication service provider be required to modify its current processes?
Telecommunication service provider is allowed to follow the current billing arrangement.

What is the treatment for rental of premises by the telecommunication service provider?
Where the landlord is an individual who is conducting a business or a company, the landlord is required to issue an e-Invoice to record the income earned from the premises rented.

Where the landlord is an individual who is not conducting a business, the telecommunication service provider is responsible to assume the role of issuer and issue a self-billed e-Invoice to substantiate the transaction for tax purposes.

For add-on services (e.g. video streaming subscription) where customer settle their payment through telecommunication service provider, which party (e.g. telecomunication service provider or the third-party vendor) is responsible for the issuance of e-Invoice to the customer?
The issuance of e-Invoice should be as follows:

• Where the third-party vendor is a local entity, the third-party vendor is required to issue an e-Invoice to the customer.
• Where the third-party vendor is a foreign entity, the customer is responsible to assume the role of Issuer and issue a self-billed e-Invoice for the add-on service provided by the third-party vendor.

Additionally, for any platform fee charges/commissions earned by the telecommunication service provider, the telecommunication service provider is required to issue e-Invoice accordingly.

Please do not hesitate to contact us for e-Invoice implementation and consultation at:

Ten Jia Sheng
014-911 1880
jsten@jsc-corp.com