LHDN e-Invoice Findings for Sole Proprietorship

In Year 2024, Malaysia Inland Revenue Board (LHDN) had begun rolling out its e-Invoice system starting from August 1, 2024 for taxpayers with annual turnover or revenue more than 100 millions. LHDN is estimating that in year 2025, all taxpayers shall implement e-Invoice regardless of sizes and income amount. While small businesses registered sole proprietorship are not required to participate before 1 July 2025, some of us, especially independent content artists and social media influencers registered as one, are still required to do so in order to be validated, recognized, and claimable via LHDN taxation filing (pull-in effect). Otherwise, the small business will be essentially locked out from making any corporation deals for both supply chain and customers ends. However, for sole proprietorship, there is not enough information and emphasis on how to perform one aside from the general guidance compared to public and private corporations. After the author, a sole proprietor who personally explored and successfully experienced a filing as a seller, it's safe to share the knowledge to the similar fate. This paper shares the experience utilizing LHDN e-Invoice as a sole proprietor mainly for enabling and validating counterparts' invoices (supplier and customers). As the paper was written in August 2024 where LHDN is still beta-testing the system with both private and public corporations, the content of the paper can be outdated as time flows per LHDN pursue of continuous improvements. To avoid conflict of interest and misinformation, reader MUST AND SHALL always refer to LHDN provided guidelines to perform e-invoices. The author SHALL NOT be held liable for any consequences in any means and any circumstances or forms for the reader.