The e-Invoice mandate by Malaysia’s Inland Revenue Board (IRBM) isn’t just about digitising invoices. It’s about standardising and streamlining how businesses interact with tax authorities and each other. While the spotlight is often on customer invoices and B2B billing, there’s one area that often flies under the radar—staff claims.
If you’re managing reimbursements, travel claims, or out-of-pocket staff expenses, this part of your finance function needs attention—fast. These transactions are just as critical under the e-Invoice framework as any others, especially with mandatory reporting requirements now enforced by the IRBM.
So, the real question is: is your staff claim process compliant and future-proof?
Let’s walk through what that really means, and give you a practical checklist you can start using today.
Understanding the Impact of e-Invoicing on Staff Claims
You’re likely already familiar with how Malaysia’s e-Invoicing system is being rolled out in phases. But what’s less talked about is how employee reimbursements will be impacted. Here’s the key detail:
When employees make purchases on behalf of the company, and later submit a claim for reimbursement, those original expenses fall under the scope of e-Invoicing.
IRBM views this as a Business-to-Business (B2B) transaction, even though the employee isn’t a vendor. This is because the original purchase relates to business activities and the reimbursement is eventually accounted for in the company’s books.
So if you’re reimbursing staff for client dinners, petrol, travel expenses, or stationery—those original receipts and their e-Invoice equivalents matter. If those invoices aren’t valid under the new system, your reimbursement process could create compliance gaps.
Your Staff Claims Readiness Checklist
This checklist is designed to help you identify weak spots and move towards full readiness for e-Invoicing in Malaysia—without overhauling everything.
1. Do Your Employees Know What e-Invoice Compliant Receipts Look Like?
Your reimbursement process should include clear instructions for employees on:
- What types of receipts are acceptable?
- What supplier details (e.g. TIN, registration number) must be present.
- What invoice format is considered valid under the IRBM guidelines.
If you’re still accepting generic receipts or handwritten bills, that’s a red flag.
2. Are You Capturing All the Required Invoice Metadata?
Under the new system, receipts must carry structured information including:
- Seller and buyer TINs
- Document type
- Date and timestamp
- Line item breakdown with tax amounts
- Unique invoice identifier
Staff claim forms and reimbursement workflows should be updated to ensure this metadata is captured or requested during submission.
3. Is Your Reimbursement Process Integrated With e-Invoicing Submission?
Submitting e-Invoices to IRBM is mandatory for every eligible transaction—including staff reimbursements tied to business expenses.
Ensure:
- Claims are linked to the original supplier’s e-Invoice or invoice reference.
- The business submits the correct invoice data to the MyInvois platform.
- You have audit trails for both the original purchase and the reimbursement.
This may require integration between your HRMS/expense system and your e-Invoice gateway.
4. Are You Validating Staff Claims Against Approved Supplier Lists?
To stay compliant, it’s important to ensure purchases are made from registered, valid suppliers with TINs. That means:
- Maintain an approved supplier/vendor list.
- Cross-check submitted receipts against this list during claim validation.
- Flag any purchases from unregistered sources for review.
This helps your team avoid problems where submitted invoices don’t meet IRBM standards.
5. Do You Have Policies in Place for Non-Compliant Claims?
Not every receipt submitted will meet the e-Invoice standard. That’s a reality every organisation will face in the early stages.
The important thing is to define a clear internal policy:
- Will you reimburse non-compliant receipts?
- Will claims be delayed or rejected pending proper invoice submission?
- How will employees be educated on acceptable documentation?
Clarity in policy prevents conflict and ensures a consistent audit approach.
6. Is Your Staff Claims Workflow Documented and Auditable?
Regulators will be focusing on auditability. Make sure your internal reimbursement process is:
- Fully documented
- Includes claim submission, review, and approval steps
- Has clear linkage between reimbursement and original invoice data
Use digital tools that time-stamp and archive submissions for future proofing.
7. Is Your e-Invoice Solution Provider Aligned with Staff Claims Compliance?
Not all e-Invoicing solution providers offer features to support internal reimbursements. This is where you need to choose the right partner.
Ask:
- Does the solution support mapping employee claims to business-related purchases?
- Can you customize workflows for internal reimbursements?
- Is there support for multi-role access for Finance, HR, and IT teams?
A plug-and-play model may not cut it for organisations with complex claims processes.
What Happens If You Don’t Prepare Staff Claims?
Non-compliance with the e-Invoicing mandate—whether for sales invoices or internal reimbursements—can lead to:
- Delayed audits and financial closing
- Rejection of claims by IRBM
- Tax deductibility issues
- Higher administrative overheads
- Potential penalties under the IRBM’s compliance framework
Moreover, employees may get frustrated if claims are delayed or rejected due to changing rules.
Going Beyond Compliance—Improving Internal Efficiency
Treating the e-Invoice mandate as just a regulatory burden misses the opportunity to improve internal operations.
Digitising and standardising your staff claims process can lead to:
- Faster reimbursements
- Fewer disputes over eligibility
- Easier audit preparation
- Reduced manual effort for Finance and HR
The key is to approach this as a long-term improvement, not just a short-term fix.
Conclusion: Advintek Helps You Close the Gaps—Before the Mandate Closes In
At Advintek, we understand that compliance isn’t just about ticking boxes. It’s about building systems that make your organisation stronger, more efficient, and audit-ready at all levels—including areas often overlooked, like staff claims.
Our e-Invoice solution isn’t a one-size-fits-all product. It’s designed to fit the way your business actually works. We work closely with your finance, HR, and IT teams to ensure even internal transactions like reimbursements align with the IRBM’s requirements. With deep integration capabilities, real-time validation, and support for structured invoice data, we help you stay compliant—without creating new bottlenecks.
Whether you’re a medium-sized enterprise or a large organisation, it’s time to take a hard look at your staff claim process. The deadline isn’t waiting. Neither should you.
