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

I think should be correct.. based on https://www.hasil.gov.my/media/acil1u20/spe...-unit-trust.pdf, see page 6 (item number 16)

Thanks, good to know! We need to balance the shortfall (forex loss, fees, etc) from the accounting side then? Feels like a lot of work just to keep track of these tiny fees individually

Currently what my accountant does is if I invoiced a client for say, USD100 and I only received RM420 in my bank through Wise, he just records RM420 in the bookkeeping.
But with the upcoming e-invoicing, he'll probably need to record it at exchange rate ~RM440 and then do some extra calculation to get the actual received value? Haih, LHDN just take my money... why add so much paperwork...

This post has been edited by purplefellow: Apr 29 2025, 10:29 AM

Yeah... it feels super tedious

OLD way: Just record money in RM420

NEW way: Record e-Invoice issued — money in RM440 (must match invoiced amount), RM20 money out for forex loss (must match invoiced amount minus what you actually got via Wise)

Yeah, your accountant was not doing proper accounting. Ur invoice is RM440 (USD100), and the receivable after expenses and cost (of ~RM20) is ~RM420. Whether with or without e-inv, your account should still be recorded in this way leh....

Crap, now I really need to have a chat with him!

https://www.malaymail.com/news/malaysia/202...google_vignette

That is great news, thanks for sharing.

https://theedgemalaysia.com/node/785083

Yes...it is now confirmed

Don’t be too happy 1st 🤦‍♀️ after election which likely due to next year when BMX comes back to lower it will happen immediately

It is only delayed and not total policy abolishment because it will bound to be happens

Great news!!!

Don’t be so pessimistic la… looking at PM’s statement it’s because of feedback from SMEs, and honestly below 1M is small fries to them, if hanky panky also not worth to catch compared to bigger corps.

"This moment, here, now. Grab onto it and take it for a ride" and "If you spend your whole life waiting for the storm, you'll never enjoy the sunshine".

Besides, his probability to continue as next PM is a thing of the future, and future is not guaranteed, right?

This post has been edited by EnergyAnalyst: Dec 7 2025, 01:16 AM

Don’t look at BMX statement 🤦‍♀️ it is all crafted to fool ppl just like petrol subsidy at first only for those M40 but yet it is all given free for all with capped so defeat the purpose subsidy reduction and same goes with toll abolishment promised since 2008 🤦‍♀️

What SMEs feedback when during the policy setup debate ppl making and now after threat from losing election then u turn delay

The problem is not the monetary value but fairness because a lot of ppl are paying taxes while many are evading taxes hence it is about fairness

It is not pessimistic but realistic and don’t ever think that delay are a good as it is bound to happen sooner later than you think

Don’t take for granted in the 1st place and prepared for eventuality because it is bound to happen as long as govt are desperate for sources of revenue 🤦‍♀️

Either way, no worries. We are prepared. Bought a bloody system and discussed and nearly sign up of a third party service firm and then this happened, so the system will sit idle since 2024 and the service firm engagement is also deferred .

The thing is the future has proven to be in a flux and will continue to be that way, so I will enjoy whatever is there to enjoy without doing the opposite: over prepared and may be meaningless in the end , like what I have just experienced