Implementation of e-Invoice in Malaysia for Donations and Contribution

Malaysia’s e-Invoicing mandate began on 1 August 2024 requiring all business to issue e-invoices in XML/JSON formats via the MyInvois portal or integrated APIs, with the system enforcing validation of 55 mandatory data fields before issuance. The legal requirement spans B2B, B2C, B2G, and certain non-commercial transactions such as donations where applicable.

Recently, on 7 July 2025, LHDN released updated guidelines and a completely new set of FAQs on e-Invoicing for donations and contributions. Under the updated LHDN guidelines, organisations are now required to issue individual or consolidated e-Invoices for monetary donations or contributions, regardless of payment method: cash, cheque, transfer unless receiving bodies are purely religious institutions not approved for tax-exempt status, or donations are non-tax-exempt. 

What Is a Donation or Contribution?

A donation or contribution generally refers to any transfer of money, goods, or assets made voluntarily without receiving anything of equivalent value in return. These can be in the form of:

• Monetary donations (cash, bank transfer, cheque, e-wallet, etc.)
• In-kind contributions (goods, food, equipment, services)
• Charity fundraising collections
• Sponsorships without commercial benefit to the donor

Examples:

• Donating RM100 to a registered charity during a fundraising drive.
• Providing laptops to a school as part of a corporate social responsibility (CSR) program.
• Giving monthly zakat or tithes to a religious body.

FAQs on E-Invoicing for Donations & Contributions

Do all organisations need to issue e-Invoices for donations and contributions they receive, and are there any exemptions? Please explain which bodies are exempt and provide examples.

All  institutions, including registered charities, foundations, and non-profit organisations, must issue e-Invoices for donations and contributions received.

Exemptions:

• Religious institutions or organisations set up solely for worship or advancing religion (not for commercial gain) are exempt from e-Invoicing for donations.
• However, if a religious body is an approved institution or fund under Section 44(6) or similar sections of the Income Tax Act (e.g., a zakat fund registered for tax relief), they must issue e-Invoices.
• Organisations that receive donations not eligible for tax exemption under the ITA 1967 also be exempt, but this is subject to periodic review by LHDN.

Example 1: A registered mosque receiving regular weekly donations for religious purposes does not have to issue e-Invoices for those donations.

Example 2: A cancer charity approved under Section 44(6) must issue e-Invoices for all donations, whether or not the donor requests one.

How should organisations issue e-Invoices for monetary donations or contributions received? What if the donor does not want an e-Invoice?

The e-invoicing process and requirement could differ based on the type of donation and for monetary donations (cash, cheque, transfer, etc.):

• If the donor requests an e-Invoice: The recipient must issue an individual e-Invoice to that donor. The donor will use this document for their own tax records or claims.
• If the donor does not request an e-Invoice: The recipient must include the donation in a consolidated e-Invoice, aggregating all such donations for the month. This consolidated e-Invoice is submitted within 7 days after the end of each month to IRBM.

Example Table:

What about in-kind donations, such as donated goods or services? Are e-Invoices required for those?

No, e-Invoices are not required for in-kind (non-monetary) donations. This includes physical items (like food, equipment, or clothing), volunteer services, or donated use of premises.

Example: A company donates 50 boxes of food to a local orphanage. The orphanage does not need to issue an e-Invoice for the food but should record it for their own records.

Do donors have to issue self-billed e-Invoices when giving to non-tax-exempt organisations?  For example, if I donate to a local club not registered for tax relief, do I need to handle e-Invoicing myself? 

No, donors do not need to issue self-billed e-Invoices when giving to organisations that are not approved for tax exemption. The onus is on the recipient to issue an e-Invoice if required by law.

If a religious institution is involved in commercial activities (like running a bookstore or cafe), do e-Invoice rules apply to those activities?

In the above case there would be two scenarios 

• Donations/contributions: No e-Invoice is needed for pure donations or religious offerings.
• Commercial activities (goods/services): E-Invoices must be issued for sales of books, merchandise, meals, or any other business transactions.

Example:

• A temple receives RM10 in a donation box: No e-Invoice.
• A temple sells a souvenir for RM30: Must issue e-Invoice.

What is the process for issuing a consolidated e-Invoice for donations, and what information is required?

At the end of each month, aggregate all donations for which no individual e-Invoice was issued. Issue a consolidated e-Invoice within 7 days after month-end via MyInvois Portal or your accounting software.

Include these details:

• "General Public" as Buyer’s Name
• Special TIN code provided by IRBM (“EI00000000010”)
• “NA” for Registration/ID/Passport Number, Address, and Contact Number
• List of receipt numbers in the Description field

Example Table:

How does e-Invoicing change the process for tax-exempt IOFs (Institutions, Organisations, Funds) and their donors?

If a donor requests an e-Invoice, IOF must issue one; a pre-printed official receipt is not needed. If no e-Invoice is requested, IOF continues to issue official receipt as before, and submits a consolidated e-Invoice for all such donations. Donors can use an individual e-Invoice as proof for tax relief.

Example: Mr. Chan donates RM500 to a cancer research fund and requests an e-Invoice. The fund issues an e-Invoice and does not give a paper receipt. Mr. Chan attaches the e-Invoice to his tax filing.

Is new accounting software required to comply with e-Invoice requirements for donations?

No, as long as your current system can create e-Invoices in the required format and transmit them to IRBM. You can also use the free MyInvois Portal.

What are the deadlines for requesting and issuing e-Invoices for donations? What if a donor asks after the transaction month?

Donors should request an e-Invoice within the same month as the donation. Organisations may deny requests made after the month has closed and the consolidated e-Invoice has been issued. Always encourage donors to request early if they need tax documentation.

What if the organisation is not registered with SSM, ROS, or other government agencies? What should they use as their BRN?

If an organisation is not registered with the Companies Commission of Malaysia (SSM), the Registrar of Societies (ROS), or any other official government registration body, it will not have a standard registration number usually required for e-Invoice and tax purposes. In such cases, these non-registered bodies are instructed by the Inland Revenue Board of Malaysia (IRBM) to use the stamp certificate number from their governing document such as their constitution, charter, or equivalent as their Business Registration Number (BRN) for both Tax Identification Number (TIN) registration and e-Invoice issuance.

This stamp certificate number is the official number provided by IRBM when the governing document is stamped and recognized by the tax authority. It is important to use the stamp certificate number (not the adjudication number) as the BRN in all e-Invoicing submissions and communications with IRBM. 

Do all branches of a national religious body need separate TINs for e-Invoicing?

Not necessary, branches can use the head office’s TIN and BRN, unless operating independently and wishing to register separately.

Where can I get further help on e-Invoicing for donations and contributions?

You can schedule a quick call with ClearTax e-invoicing expert team by clicking on the following link. You can also contact LHDN directly through the following link

• IRBM’s MyInvois Help Desk: 03-8682 8000 (24/7)
• MyInvois Live Chat: IRBM E-Invoice Contact
• Email: myinvois@hasil.gov.my

E-Invoicing for Donations and Contributions: Before & After the Update

Below is a table comparing the key differences before and after the recent update in guidelines