Under certain circumstances, the value of supply is determined by the person who receives the goods. Therefore, for GST purpose the recipient of the goods is allowed to issue an invoice to himself which is deemed to be a tax invoice in respect of a supply of goods or services to him by another registered person or any person approved by the Director General. The issuance of this self-billed invoice by the recipient to himself under subsection 33(3) of the GST Act 2014 shall be subject to the following conditions:
i. the value is not known by the supplier at the time of making the supply;
ii. the recipient and the supplier are both registered persons or any supplier approved by the Director General;
iii. the recipient and the supplier agree in writing to a self-billed invoice; iv. the supplier and the recipient agree that the supplier shall not issue a tax invoice in respect of any supply;
v. the document may, with the prior approval of the Director General, be treated as a tax invoice;
vi. a copy of any self-billed invoice is provided to the supplier and another copy is retained by the recipient;
vii. in the case where the self-billed invoice is issued before the time of removal of such goods, or before the time the goods are made available, or before the time the services are performed, the selfbilled invoice shall be issued with payment;
viii. the recipient shall issue a self-billed invoice e showing the following particulars:
a. the supplier’s and recipient’s names, addresses and identification numbers;
b. the word ‘self-billed invoice’ in a prominent place;
c. the invoice serial number;
d. the date of issuance of the invoice;
e. the reference number of RMCD’s approval;
f. a description sufficient to identify the goods or services supplied;
g. for each description, distinguish the type of supply for zero rate, standard rate and exempt, the quantity off the goods or the extent of the services supplied and the amount payable, excluding tax;
h. any discount offered;
i. the total amount payable excluding tax, the rate of tax and the total tax chargeable to be shown separately;
j. the total amount payable inclusive of the total tax chargeable; and
k. any amount referred to in subparagraphs (ix) and (x), expressed in a currency, other than Ringgit, shall also be expressed in Ringgit in accordance with paragraph 5 oof the Third Schedule of the GST Act 2014.
ix. any other conditions as the Director General deems fit to impose.
Who can issue Self Billed Invoice:
In a normal business transaction, the supplier will issue an invoice to the buyer. However, in the case of self-billed invoice the buyer will issue an invoice because the supplier is unable to determine the value of the supply. A copy of the invoice should be retained by the supplier whereas the original invoice should be retained by the recipient/buyer to claim input tax (GST paid on inputs). For example, tobacco manufacturers issue tax invoices to growers who supply tobacco leaves. Since the recipient/buyer knows the open market value of the tobacco leaves, thus they are best able to provide the necessary information on the value of the product and will therefore issue a self-billed invoice.
You can only issue self-billed invoice upon the Director General’s approval. The reference number of the approval must be stated in the self-billed invoice. If you do not meet the specified standards for such invoices, your approval can be cancelled at any time.
Contents of Written Agreement:
on Self- Billing A self-billed invoice can only be issued under a written agreement between the recipient/buyer and the supplier. A self-billing agreement shall contain the following information:
i. the recipient/buyer’s name and GST identification number;
ii. the supplier’s name and GST identification number;
iii. the buyer agrees to issue self-billed invoices for all supplies made to him/her by the supplier for a specified period which shall end not later than either the expiry date of a period of 12 months, or the expiry date of contract between the buyer and supplier;
iv. the buyer agrees to issue self-billed invoices showing the supplier’s name, address and GST identification number, and other details that make up a full tax invoice;
v. the buyer agrees to inform the supplier if the issuance of selfbilled invoices will be outsourced to a third party such as an accounting firm or tax agent, giving details of the third party;
vi. the buyer agrees to make a new self-billing agreement in the event that their GST identification number changes;
vii. the supplier agrees to accept the self billed invoices issued by the buyer for supplies covered by the agreement;
viii. the supplier agrees not to issue GST invoices for supplies covered by the agreement; and
ix. the supplier and recipient will notify each other if either one of them ceases to be registered for GST, transfers his business as a going concern or becomes registered under a new GST ID.
How to input and Print out Self Billed Invoice in QNE Optimum:
1. Go to company profile, fill up the GST Approval Number which approve by the DG of Royal Customs Malaysia
2. Since one of the requirement of Self Billed Invoice is to have it's own invoice serial number, Thus, we have to assign a different running number in Maintenance>Running Number>Purchase>Bill
3. Input in the purchase invoice, assign a different running number and when u print out the self billed invoice, you can select the format below: