E-Invoice Guide for Construction Industry

The Lembaga Hasil Dalam Negeri (LHDN) released a set of Frequent Asked Questions (FAQs) on November 30, 2023, specifically tailored for the construction industry. Here's a breakdown and summary of key points regarding e-invoice implementation:

Would e-Invoice be required for charges to sub-contractors, including penalties?
Yes, an e-Invoice is required to be issued by contractors for charges to sub-contractors.

What is the e-Invoice treatment for progress claim on a contruction of a property?
  • If the certificate of work done is not required - contractor is required to issue an e-Invoice in relation to the progress claim on the contruction of property to substantiate the income generated.
  • If the certificate of work done is required, the e-Invoice can be issued upon obtaining the certificate.
Upon implementation of e-Invoice, will the same arrangement for the materials purchase on behalf of the owner and include the said purchases in its progress billing to the owner continue to apply or will the main contractor be required to modify its current processes?
Main contractor is allowed to continue their current billing arrangement. With the implementation of e-Invoice, the invoices issued by the main contractor will need to be e-Invoices.

Is consolidated e-Invoice* allowed for sale of contraction materials?
Consolidated e-Invoice is not allowed for the sale of contruction materials as defined under the Construction Industry Development Act 1994.

* Click here to know more about consolidated e-Invoice.

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

Ten Jia Sheng
014-911 1880

03 Jan 2024