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Stay Informed: Impact of E-Invoicing on Construction Contracts - Recovery of penalty

Updated: Dec 9, 2023

Dear Construction Industry payers,


As the implementation of e-invoicing is slowly approaching, there is a significant change that you must be concerned about, namely, the default penalties that are being demanded from contractors, according to the Frequently Asked Questions (FAQs) for Construction Industry published by the Inland Revenue Board of Malaysia.


Anyone in the construction industry knows that general contractors often claim penalties for mistakes or defects made by subcontractors during construction.


However, this penalty for breach of contract in the electronic age also applies to e-invoices.


For example, if an electrician subcontractor has done the work improperly, you, the contractor, as the purchaser of the service, need to issue an e-invoice of RM5,000 to the electrician to recover the penalty for breach of contract.


Last but not least, we urge you to keep an eye on the policy and stay abreast of the latest developments. Please visit the Inland Revenue Department's official website for the latest announcements. 亲爱的建筑业从业者, 随着电子发票实施慢慢逼近,您必须关注一项重要变化,即向承包商索取的违约罚款。


从事建筑业的商家都知道,总包商经常会因承包商在施工的过程中所产生的错误或瑕疵,而索取违约罚款。


但在电子化时代,这项违约罚款的索取,也是需要开电子发票的哟。


举例来说,如果电工装修不当,作为服务购买方的您,若要追讨违约罚款,是需要向该电工开出金额为5,000令吉的电子发票。


最后,呼吁大家积极关注政策动向,与时俱进。请浏览内陆税收局的官方网站,获取最新公告。






To Download:

250.1 Frequently Asked Questions (FAQs) for Construction Industry
.pdf
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E-Invoice Frequently Asked Questions (FAQs) for Construction Industry - https://www.ccs-co.com/post/e-invoice-frequently-asked-questions-faqs-for-construction-industry


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13. Revised E-Invoicing Implementation Timeline: Impacts and Challenges for Businesses https://www.ccs-co.com/post/revised-e-invoicing-implementation-timeline-impacts-and-challenges-for-businesses


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18. An e-invoice is a Digital Representation of Transactions between Suppliers and Buyers https://www.ccs-co.com/post/an-e-invoice-is-a-digital-representation-of-transactions-between-suppliers-and-buyers


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