Malaysia e-Invoicing Classification Codes for Commercial Transactions
Malaysia’s e-invoicing system requires classification codes that categorise products and services in commercial transactions. These three-character codes standardise reporting, ensure consistent invoicing, and streamline data processing for compliance with the MyInvois system’s structured format.
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.
Key Takeaways:
- Codes must follow the 3-character format defined by IRBM in the SDK.
- 45 classification codes are officially listed, covering diverse goods, services, and financial activities.
- Codes span from basic needs (childcare, medical, education) to specialised areas (construction, petroleum, R&D).
- e-Invoice Malaysia codes are applied at the line-item level for each e-invoice.
- Codes enable automated validation, interoperability, and standardised data flow in MyInvois.
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.
About the Author
Rajan Rauniyar
I’m a Senior Content Writer at ClearTax, specializing in e-invoicing, VAT, and Tax compliance. Over the years, I’ve researched and written everything from blog posts to whitepapers and product guides, helping ClearTax expand in Malaysia, KSA, UAE, Singapore, Belgium, France and beyond. My goal is to write the most comprehensive, understandable, readable, and accurate content on any topic that has ever existed on the internet. Read more
Level 6, Menara The Stride, BBCC, Jln Pudu, Bukit Bintang, 55100 Kuala Lumpur Malaysia
