Last updated: February 2026
How to Process Staff Reimbursements Under e-Invoicing Rules
Complete guide for Malaysian HR teams on compliant reimbursement procedures
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To process staff reimbursements under e-Invoicing: 1) Employee obtains e-invoice from vendor, 2) Submit claim with e-invoice attached, 3) HR verifies on MyInvois, 4) Approve and pay. Without valid e-invoice (post-mandate), expense may not be tax-deductible. Mileage claims don't need e-invoice.
This guide covers the complete process for handling staff reimbursements under Malaysia's e-Invoicing system, including verification steps, edge cases, and payroll considerations.
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Frequently Asked Questions
How do I process staff reimbursements under e-Invoicing?
For compliant reimbursements: 1) Employee obtains e-invoice from vendor, 2) Submits claim with e-invoice attached, 3) HR/Finance verifies e-invoice on MyInvois, 4) Approve and process payment, 5) Store validated e-invoice with payment records.
What is the difference between expense claims and reimbursements?
Expense claims: employee pays first, claims back from company. Reimbursements: company pays back the employee. Both require e-invoice documentation for tax purposes. The e-invoice must show the transaction details regardless of who paid initially.
Can reimbursements be processed without e-invoice?
Post-mandate, reimbursements without proper e-invoice may not be tax-deductible for the company. You can still reimburse the employee, but the expense may be disallowed for corporate tax purposes. Encourage employees to always obtain e-invoices.
How to handle reimbursements for services without e-invoice capability?
Small vendors may have delayed e-invoice implementation (until July 2025). During transition, document the vendor's status, keep traditional invoice, and note the limitation. Post full mandate, seek alternative vendors with e-invoice capability.
What about mileage reimbursements?
Mileage/km claims based on personal vehicle usage don't require e-invoice as there's no third-party vendor. Maintain mileage log with business purpose, origin/destination, and km traveled. Standard rates (government-approved) can be applied.
How to reimburse staff for mixed personal/business purchases?
When e-invoice includes both personal and business items: 1) Request itemized e-invoice from vendor, 2) Employee claims only business portion, 3) Document the business items claimed, 4) Store full e-invoice with claim notation.
Can employees be reimbursed for purchases on their personal credit card?
Yes, payment method doesn't affect e-invoice requirement. Whether employee pays by cash, card, or e-wallet, the vendor must still issue e-invoice for the transaction. Attach payment proof along with validated e-invoice.
What is the timeline for processing reimbursements?
Best practice: reimburse within 30 days of approved claim. For e-invoice compliance: verify e-invoice immediately upon receipt (before approval). Process payment after verification. Maintain clear turnaround time policy.
How to handle disputed or rejected e-invoices?
If e-invoice verification fails: 1) Contact vendor for correction or re-issue, 2) If vendor unresponsive, document attempts, 3) Consider self-billing e-invoice (with proper arrangement), 4) Consult tax advisor for complex cases.
What payroll considerations exist for reimbursements?
Reimbursements for actual business expenses (with e-invoice) are generally not taxable to the employee. However, fixed allowances or reimbursements exceeding actual expenses may be taxable. Maintain clear documentation distinguishing reimbursements from allowances.