If a staff pays a foreign supplier on behalf of the company (e.g., Google), do we need to issue a self-billed e-Invoice?

According to the e-Invoice Specific Guidelines Version 4.3 issued by LHDNM, employers are not required to issue a self-billed e-Invoice for overseas expenses paid by employees, provided the employee was acting on behalf of the company or if the expenses is an employee perquisite and benefit.

This is supported by the following:

As stated in Section 6.5(b) and 7.4(b), Page 63, when an employee incurs expenses abroad and pays using their own funds (e.g. for travel or accommodation), the company is not obligated to generate a self-billed e-Invoice. Instead, foreign receipts, bills, or invoices are acceptable as valid proof of expense for tax purposes.

However, the exceptions only applies if:

1. Expenses incurred by employee on behalf of employer

 - the employer can prove the employee was acting on the company’s behalf when the expense was incurred.

2. Employee perquisites and benefits

 - The items are clearly stated in the employer's policy.

In summary:

- No self-billed e-Invoice is needed for overseas expenses paid by employees, provided they are company expenses or employee benefits;

- Foreign receipts or invoices are sufficient documentation;

- The company must be able to prove that the employee incurred the expenses in the course of duty and on behalf of the employer. (e.g relevant documentations, photos, and etc)

- If the foreign purchase is the Perquisite and Benefits of employee, the above exeption only apply if they are clearly stated in the employer's policy.