E-invoice Guide for Tourism Industry

The Lembaga Hasil Dalam Negeri (LHDN) released a set of Frequent Asked Questions (FAQs) on 14 June 2024, specifically tailored for the tourism industry. Here's a breakdown and summary of key points regarding e-invoice implementation:

Which party is responsible for the issuance of e-Invoice for flight tickets or private air charters sold through travel agents or third parties?

The responsibility for issuing e-Invoice would depend on the contractual relationship between the travel agent / third party and the airline operator.

(1) Where the travel agent acts as the principal (i.e., purchasing from the airline operator and reselling to the consumer), the travel agent is responsible to issue e-Invoice to the consumer.  

i. If the flight ticket and other non-flight related products (e.g., ground tour, visa application) are sold together in a single transaction, the travel agent would be required to issue either:  
  • an e-Invoice detailing both the flight ticket and non-flight related products; or
  • separate e-Invoices for the flight ticket and non-flight related products. 
ii. If the flight ticket and non-flight related products are sold separately, the travel agent would be required to issue: 
  • an e-Invoice for the flight ticket, regardless of whether the Buyer request for it; and  
  • an e-Invoice (upon Buyer’s request) / receipt (if the Buyer does not request for e-Invoice) for the non-flight related products.  
The airline operator is required to issue an  e-Invoice to the travel agent for the sale of flight tickets or private air charters as per current invoicing arrangement.  

(2) Where the flight tickets are sold by the travel agent on behalf of the airline operator (i.e., merely acting as an agent), the obligation to issue an e-Invoice to the consumer for the sale of flight ticket or private air charters would lie with the airline operator

Consequently, the airline operator is required to issue self-billed e-Invoice for the commission paid to travel agent. 

Kindly note that issuance of consolidated e-Invoice is not allowed for the sale of flight tickets or private air charters.

Whose details should be provided as the Buyer for the purposes of issuing e-Invoice for the sale of flight ticket or private air charter by travel agent acting as the principal?

For the purposes of issuing e-Invoice for sale of flight ticket or private air charter, the Buyer’s details should be as follows: 

a) When an individual purchases for personal travel or for another individual who is the passenger, the Buyer’s details should reflect the person who made the purchase; or  

b) For group purchases (i.e., multiple tickets in a single booking), the Buyer’s details could be one of the following options, based on the Seller’s preference: 

i. The details of the person who made the purchase, for all individual e-Invoices; or 
ii. The details of each passenger within the booking, for their respective individual  e-Invoice.

How should an e-Invoice be issued where collection of deposit is applicable?

Where such deposit is refundable in nature, no  e-Invoice is required to be issued at the point of collecting the security deposit. 

Where such deposit is non-refundable in nature, the travel agent is required to issue e-Invoice for the deposit collected. Subsequently, the travel agent should issue a separate e-Invoice for the balance amount.   

What is the e-Invoice treatment for third party tour guides (both local and foreign)?

Where the service is provided by a local tour guide, the tour guide is required to issue an e-Invoice to the travel agent for the services provided.  

Otherwise, where the service is provided by a foreign tour guide, the Malaysian travel agency is required to issue a self-billed e-Invoice.  

Is a travel agency allowed to issue a consolidated e-Invoice on the tour packages, which may include various services (e.g., flight tickets, hotel accommodations, and tour guide services) sold at a bundled price to customers who do not require an  e-Invoice? 

If the tour package is inclusive of flight ticket, travel agency is not allowed to issue a consolidated  e-Invoice. In other words, travel agency is required to issue individual e-Invoice to the customers, regardless of whether the customer requests for an  e-Invoice. 

In the event the tour package is exclusive of flight ticket, travel agency would be allowed to issue receipts to customers, if the customers do not request for e-Invoice. The travel agency is then allowed to aggregate all transactions and issue consolidated e-Invoice for IRBM’s validation within 7 calendar days after the month end.   

Note that issuance of consolidated e-Invoice is not allowed for the sale of flight tickets or private air charters.


Please do not hesitate to contact us for e-Invoice implementation and consultation at:

Ten Jia Sheng
014-911 1880
jsten@jsc-corp.com

Sep 28,2024