As Malaysia moves into full implementation of the e-Invoice system under LHDN (Lembaga Hasil Dalam Negeri), many landlords are asking:
“If a tenant issues a self-billed e-Invoice to an exempt individual landlord, do they need to inform the landlord or get approval?”
Here’s what you need to know.
✅ Are Individual Landlords Subject to e-Invoicing?
If you’re a landlord who:
- Owns property as an individual (not a company)
- Does not treat rental as a business
- Declares rental income under Form BE (individual tax return)
👉 Then you’re exempt from e-Invoicing under current LHDN guidelines.
This means:
- No need to register on the MyInvois portal
- No need to issue e-Invoices yourself
However, your corporate tenant may still need to generate e-Invoices for their own tax compliance.
🧾 What is Self-Billing?
Self-billing means the tenant (buyer) issues an e-Invoice on behalf of the landlord (supplier). LHDN allows this when:
- The landlord is exempt from e-Invoicing
- The tenant needs an invoice for their own tax records
So if you’re a corporate tenant renting from an exempt landlord, you can use self-billed e-Invoices via the MyInvois system.
📣 Do Tenants Need to Inform the Landlord?
Yes. Even though approval is not technically required, tenants should:
- Inform the landlord before submitting a self-billed e-Invoice
- Provide a copy of the invoice (via email, WhatsApp, or printed)
This helps avoid:
- Double billing
- Misunderstandings over rental amounts
- Disputes during audits
📝 Does the Landlord Need to Approve the Invoice?
Technically: ❌ No. Approval isn’t required in the MyInvois system.
Practically: ✅ Yes. The landlord should review the invoice and acknowledge it offline to confirm:
- Correct rental amount
- Accurate billing period
- Invoice details are correct
This protects both sides and helps during audits or disputes.
📌 Does the Landlord Need to Do Anything?
If you’re an exempt individual landlord, you don’t need to:
- Register for MyInvois
- Issue or approve e-Invoices
But you should:
- Keep copies of self-billed invoices
- Use them when filing Form BE
- Accurately declare rental income
💡 Even if you don’t receive a physical invoice, you’re still responsible for reporting your rental income.
🤝 Best Practices for Tenants and Landlords
- Include e-Invoice clauses in your rental agreement (e.g., “Tenant may issue self-billed e-Invoices”).
- Communicate clearly about invoice issuance or corrections.
- Both parties should keep copies of invoices for 7 years.
🧾 Sample Self-Billed Invoice Format
| Field | Example Value |
|---|---|
| Invoice Type | Self-Billed |
| Buyer | ABC Sdn Bhd |
| Seller | Lim Wei Ming (Individual Landlord) |
| Description | Office Rental – July 2025 |
| Amount (RM) | RM 2,000.00 |
| Invoice Ref | SB-0725-LWM |
📥 Need a ready-to-use template? Contact us and we’ll send you one.
💬 Frequently Asked Questions (FAQ)
Q1: I’m a landlord and my tenant sent a self-billed e-Invoice. What should I do?
Review it, keep a copy, and ensure your rental income is declared correctly. No MyInvois action needed.
Q2: What if I disagree with the amount?
Inform the tenant immediately. They can cancel and reissue a corrected invoice.
Q3: Can I choose to issue my own e-Invoice even if I’m exempt?
Yes, but it’s not required. If your rental qualifies as a business (e.g. multiple units), you may lose exemption.
🚀 Final Thoughts
For exempt landlords: No MyInvois action is needed, but stay informed and keep records.
For tenants: Self-billing is allowed—but always inform the landlord and send them a copy.
💼 Need Help with e-Invoicing?
At KinraSoft, we help Malaysian businesses:
- Navigate e-Invoice compliance
- Automate self-billing workflows
- Submit e-Invoices to LHDN correctly