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:
Buy