Hey guys, I'm a freelancer working with foreign clients (mainly in the US). I'm under phase 3 implementation, which means I need to start using the MyInvois portal starting from 1st of July 2025.

I usually invoice them in USD, then they pay me via Wise. According to LHDN's guidelines, I should create an e-Invoice in the USD currency and pick an exchange rate from a platform of choice to use.

The problem is that Wise charges some amount of conversion fee that I absorb. So for example if I invoice $1,000 at exchange rate of 4.4, I don't get RM4,400, I get something like RM4,350 because of RM50 conversion fee from Wise. So how do I tally these amounts? Or is the MYR equivalent not a big deal for an invoice issued in foreign currency because of conversion fluctuations?

The way I see it, there are a couple of options:

1. I invoice as usual using my own format, then once I know the final amount after Wise transfer is in, I create the e-Invoice after the fact with the final amount.

The problem here is I'm not sure that this is allowed.

2. I invoice using e-Invoice, then after the Wise transfer is in, I revise the MYR equivalent amount in the e-invoice via debit/credit note.

This seems to be the sanctioned/approved option, but it's obviously twice the amount of paperwork on my end

3. I invoice using e-Invoice and don't care that there's a mismatch between my estimated MYR vs. the actual MYR amount that I receive.

This is the least amount of work for me, and it'd be nice if this is indeed acceptable because it's only natural to expect foreign exchange rates to fluctuate a little bit after issuance of e-Invoice.

EDIT: I received an email response from LHDN. We don't have to do anything special.

This post has been edited by KingArthurVI: Apr 28 2025, 02:15 PM

just add currency conversion to cost then can minus off the orgnal bll amount to tally wth amout received

How to do so? Is it via the debit/credit note mechanism?

Interested to know as well since I'm in the same shoes as you. But just a heads up, e-invoice phase 3 has been delayed to Jan 1, 2026.

I sent an email to LHDN and will update here if I hear back.

So dumb, they delayed phase 3 to 2026 but didn't bother to change it in their email communication which I just received 5 days ago.

Actually, we're still on the hook. https://www.hasil.gov.my/en/e-invoice/imple...ation-timeline/ still shows "Taxpayers with an annual turnover or revenue of more than RM500,000 and up to RM25 million" as 1 July...

My bad! I fall under the SME below RM500k income, which was the ones that got delayed. I'm hoping my accountant will help me sort it out when the time comes

Wow you have an accountant? Can you let me know if they have any updates for you regarding this e-invoicing thing with foreign currency transactions? Thanks in advance

Sure, I'll try asking him the next time we speak (not sure when though since he seems pretty busy atm). He's just a freelance accountant who helps with my sole-prop bookkeeping once a year. When asked about e-invoicing last year, he just to said he'll show me what to do when the time comes... something about using self-billed e-invoice for foreign clients yada-yada. I see all the fields that needs to filled up also pening already haha

should check this out https://www.hasil.gov.my/media/acil1u20/spe...-unit-trust.pdf

Item 11 should provide some guidance

Hmm it's a bit different, because in that case the banks need to invoice the remittance entity like Wise or UnionPay etc., but in my case how can I ask for an invoice from Wise

How to submit einv? Do we just issue and then upload onto portal? Or do we need to purposely subscribe account software?

Seems like details unclear. Only thing that is clear is gamen die2 want implement einv.

Sign up on portal and there should be a way to start a new draft of your invoice. Once finalized, they’ll add a QR code to it, I think.

if Wise has a local presence, they are required to issue e-invoice to you

if not, just issue self-billed e-Invoice for foreign entity.

If issuing self billed e-invoice, would it be from me to Wise to claim the debit amount of transaction fee? Do I actually need to send it to them?

you can double check with the IRB e-Invoice helpdesk but I don't think you need to send to them if they are not in scope to implement e-Invoicing.

LHDN finally replied to my email.

Summary is that we don't need to do anything special.

Wise still okay, small fee only. Mine on PayPal and Stripe, their service fee is much higher.

No worries... just charge it back to your clients

tbh .. conversion fee is not accounting or audit adjustment for foreign exchange differences

based on my experience with the IRB, not all officers are well verse in e-Invoicing despite them being in e-Invoice Helpdesk team.

Keep this email to safeguard yourself for future dispute during audit