E- INVOICING
An e-Invoice is a digital representation of a transaction between a supplier and a buyer. e-Invoice replaces paper or electronic documents such as invoices, credit notes, and debit notes.
e-Invoice covers typical transaction types such as B2B, B2C, and B2G. For B2G transactions, the e-Invoice flow will be similar to B2B.
E-Invoice contains the same essential information as traditional document, for example, supplier’s and buyer’s details, item description, quantity, price excluding tax, tax, and total amount, which records transaction data for daily business operations.
Digital Format: E-invoices are created in digital formats, typically structured data files rather than paper documents or PDFs. Common formats include XML, EDI (Electronic Data Interchange), and more recently, JSON.
Standardization: Adopted standard formats and protocols for e-invoicing to ensure consistency and interoperability among businesses and government agencies. These standards help streamline the exchange of invoices.
All individuals and legal entities are required
1. Association;
2. Body of persons;
3. Branch;
4. Business trust;
5. Co-operative societies;
6. Corporations;
7. Limited liability partnership;
8. Partnership;
9. Property trust fund;
10. Property trust;
11. Real estate investment trust;
12. Representative office and regional office;
13. Trust body; and
14. Unit trust.
Types of e-Invoices to be issued
1. Invoice: A commercial document that itemises and records a transaction between a supplier and buyer, including self-issuance of e-Invoice to document an expense such as foreign supplier.
2. Credit Note: A credit note is issued by suppliers to correct errors, apply discounts, or account for returns in a previously issued e-Invoice with the purpose of reducing the value of the original e-Invoice. This is used in situations where the reduction of the original e-Invoice does not involve return of monies to the buyer;
3. Debit Note: A debit note is issued to indicate additional charges on a previously issued invoice; and
4. Refund: A refund e-Invoice is a document issued by a supplier to confirm the refund of the buyer’s payment. This is used in situations where there is a return of monies to the buyer.
PROCESS FLOW
