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Malaysia e-Invoicing Classification Codes for Commercial Transactions

Updated on: Aug 6th, 2024

17 min read

The API model for e-invoicing in Malaysia requires submitting documents to the MyInvois system in a predefined standardised format, such as JSON or XML. Each detail in the invoice must adhere to the prescribed data structure as defined by the UBL Schema mapping in the Software Development Kit (SDK).

Standardised formats enable the MyInvois system to efficiently process e-invoices, perform automated validation checks, and ensure consistency and compatibility. The SDK provides a list of code tables to facilitate this process, including Country Codes, Currency Codes, State Codes, etc.

Classification codes offer a standardised method for categorising the nature of transactions. This blog will list all the classification codes and their descriptions for commercial transactions.

What are Classification Codes?

Classification Codes are standardised codes used to categorise products or services involved in commercial transactions. These codes ensure consistency in the way items are classified and reported across various invoices, facilitating easier data processing and automated data flow. Classification codes need to be specified at a line item level for each document.

In the context of Malaysia's e-invoicing system, classification codes help in categorising the nature of transactions.

List of the Classification Codes for Commercial Transaction

There are a total of 45 codes defined by the IRBM in SDK. However, this list could be updated and extended from time to time. It's important to note that the codes must consist of 3 characters.

Here is the list of classification codes for commercial transactions in Malaysia

Code	Descriptions
001	Breastfeeding supplies
002	Fees for childcare centers and kindergartens
003	Computers, smartphones, or tablets
004	Consolidated electronic invoices
005	Construction materials (specified in the Fourth Schedule of the Malaysia Construction Industry Development Board Act 1994)
006	Disbursement of funds
007	Donations
008	E-commerce - Issuance of e-invoices to buyers/purchasers
009	E-commerce - Self-generated e-invoices for sellers, logistics, etc.
010	Tuition fees
011	Goods held on consignment (by the Consignor)
012	Goods held on consignment (by the Consignee)
013	Gym memberships
014	Insurance for educational and medical benefits
015	Takaful or life insurance
016	Interest and financing charges
017	Internet service subscriptions
018	Land and buildings
019	Medical assessments for learning disabilities, early intervention, or rehabilitation treatments for such disabilities
020	Medical examinations or vaccination costs
021	Medical expenses for severe illnesses
022	Miscellaneous items
023	Petroleum operations (as defined in the Petroleum (Income Tax) Act 1967)
024	Private retirement schemes or deferred annuity schemes
025	Vehicles
026	Subscriptions to books, journals, magazines, newspapers, or similar publications
027	Reimbursements
028	Vehicle rentals
029	Electric vehicle charging facilities (installation, rental, sale/purchase, or subscription fees)
030	Repairs and maintenance
031	Research and development
032	Foreign earnings
033	Self-generated invoices for betting and gaming
034	Self-generated invoices for imported goods
035	Self-generated invoices for imported services
036	Self-generated invoices for other transactions
037	Self-generated invoices for monetary payments to agents, dealers, or distributors
038	Equipment for sports activities, fees for renting sports facilities or entering them, registration costs for sports competitions, and fees for sports training programs enforced by organizations registered with either the Sports Commissioner or the Companies Commission of Malaysia and involved in sports activities outlined in the Sports Development Act 1997.
039	Equipment to support disabled persons
040	Voluntary contributions to approved provident funds
041	Dental exams or treatments
042	Fertility treatments
043	Treatment, home care nursing, daycare, and residential care center expenses
044	Vouchers, gift cards, loyalty points, etc.
045	Self-generated invoices for non-monetary payments to agents, dealers, or distributors

Conclusion

The classification codes provided by Malaysia's e-invoicing system serve as vital identifiers, categorising the diverse range of products and services exchanged in commercial transactions. Each code corresponds to a specific category of goods or services provided.

From essentials like breastfeeding equipment and childcare fees to more specialised areas such as construction materials and petroleum operations, these codes ensure clarity and consistency in invoicing across various industries.

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