The Ultimate Guide to E-Invoicing for Airline Operators

The Inland Revenue Board of Malaysia (LHDN) has released a detaileddocument made explicitly for the aviation sector. This document, in the form of an FAQ is designed to provide guidance and explain various business scenarios, along with providing practical advice to help aviation-related businesses in Malaysia. Thereby, enabling them to adhere with the Malaysian e-invoicing regulatory requirements. 1. Issuing e-Invoices for Flight Tickets and Private Air Charter services The sale of flight tickets and private air charter services, make it mandatory for an e-invoice to be issued. This condition comes with certain requirements depending on the type of airline operator, explained as below: Local Airline Operators: All local airline operators are bound to issue e-invoices for all flight tickets and services. This isirrespective of where the sale occurs. Foreign Airline Operators: All foreign airline operators are bound to issue e-invoices only when the point of sale is in Malaysia, as defined by the International Air Transport Association (IATA). Key consideration: Consolidated e-invoices are not allowed for thesedealings. For furtherinformation on this, refer to Sections 2.3, 2.4, and 3.7 of the e-invoice Guidelines. 2. Buyer Information in E-Invoices Information of the buyer in e-invoicing in aviationdiffersbased on the nature of the buying: In case of Personal Travel:Details of the individual who made the purchase must be entered as buyer’s details. In case of Group Bookings:Airlines have two options: All the invoices can contain the details of the person who made the purchase for all the invoices Each invoice can have the details of the respective passenger 3. Privacy Concerns with Buyer Data Global data protection laws, such as GDPR, may cause airlines to face challenges in gathering personal details like Tax Identification Numbers (TIN). In order to mitigate this issue, the Inland Revenue Board of Malaysia (IRBM) provides the following temporary options: Buyer’s Name: Enter “General Public.” TIN: Enter “EI00000000020.” Business Registration Number (BRN): Enter “N/A.” Other Details (Address, Contact Number, SST Registration Number): Enter “N/A.” This methodensures complete compliance in e-invoicing in aviation, adhering to privacy laws. 4. E-Invoices for Excess Baggage Fees Airlines must issue e-invoices based on the following conditions, in situations where fee is charged on excess baggage during checkin: If Requested: e-invoice must be issued instantly. If Not Requested: Must provide a receipt and consolidate these transactions into a e-invoice within seven days after the end of the month. 5. Handling Price Adjustments and Refunds Changes in ticket prices need specific e-invoicing procedures: In case of increase in price, they are required toissue a separate e-invoice or debit note for the difference. In case of reductions in price or Refunds they are required toissue a credit note or refund note. In cases where there are no changes i