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Recent Update on Malaysia's E-Invoice Implementation in the Healthcare Industry

Updated: Jul 3


Medical Staff in hospital

The Malaysian healthcare industry is gearing up for the implementation of e-invoicing, which is set to become mandatory from August 2024. The recent FAQ update provides crucial insights into how healthcare providers, including hospitals and independent consultants, can navigate this transition smoothly. Here are the key points:


Current Invoicing Arrangements:

  • Hospitals can continue their current invoicing practices, whether issuing bills directly to patients, third-party administrators, insurance companies, or corporate bodies. The buyer is typically the patient, with necessary details provided for minors. Consolidated E-Invoice:

  • Hospitals may issue a consolidated e-invoice for transactions involving self-paying patients who do not require an e-invoice. Billing for Insurance Claims:

  • Hospitals can maintain current practices by issuing proforma bills to insurance companies. Final e-invoices are to be issued upon completion of medical services and patient discharge. Independent Consultants:

  • In scenarios involving co-provision or outsourcing of medical services, both hospitals and independent consultants must issue separate e-invoices to patients. Locum Doctors and Nurses:

  • Locum doctors and nurses contracted by hospitals must issue e-invoices for their services. If employed, their fees are treated as employment income, exempt from e-invoice issuance for now. Referrals to Sister Companies:

  • E-invoice treatment for patients referred to sister companies or private hospitals follows existing billing practices, with hospitals issuing e-invoices accordingly. Service Charges to Consultants and Vendors:

  • Hospitals will continue issuing e-invoices for services provided to independent consultants, convenience stores, and cafes as per current periodic billing cycles. Type of Bills for E-Invoice:

  • Hospitals are required to issue e-invoices based on detailed bills, reflecting current invoicing practices. Threshold Compliance:

  • Both hospitals and consultants must adhere to their respective turnover thresholds for e-invoice implementation. Deposit Collection:

  • Refundable deposits do not require an e-invoice upon receipt. Non-refundable deposits must be invoiced, with an option for consolidated e-invoicing for non-requesting buyers. Staff Medical Expenses:

  • Hospitals can continue issuing invoices for staff medical expenses, with an option to issue e-invoices with a nil amount for free services provided to staff.

These updates aim to streamline the invoicing process, ensuring compliance and efficiency within the healthcare industry as Malaysia transitions to e-invoicing.


To view the full FAQ you can visit LHDN's website here


If you would like to learn more about the recent updates on LHDN E-Invoice or would like to learn how to use the E-Invoice function, then join our upcoming seminars/webinars and click here to see the upcoming events.

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