ClearTax E-Invoice is an integration that submits RMS tax invoices to the Malaysian government's MyInvois portal via ClearTax, returning an e-Invoice number for each accepted invoice.

Overview

Malaysia's mandatory e-invoicing requirement is administered by LHDN (Lembaga Hasil Dalam Negeri Malaysia) and is being rolled out in phases from August 2024 based on annual revenue thresholds.

ClearTax is the middleware partner RMS supports for Malaysian e-invoicing. When the integration is active on a Property, RMS sends the invoice payload to ClearTax automatically. The returned e-Invoice No is stored in RMS and shown on the reprinted tax invoice.

This article covers the ClearTax E-Invoice integration for Malaysian properties only: module activation, credential configuration, how the integration determines the ID type for each bill-to party, and common setup issues seen during go-live.

This integration applies only to Properties with Country set to Malaysia. It does not affect invoices issued by Properties in other countries.

Prerequisites

• The Property is registered in Malaysia and the Property Country is set to Malaysia in RMS Property Options.
• A ClearTax account for Malaysia is active and API credentials have been provisioned directly with ClearTax. You will need the following credentials: TIN, BRN, SST registration number, Tourism Tax (TTX) registration number, and Access Token.
• The E-Invoice module is activated on the Property via the Module Market. Only a System Administrator or the Manager Profile has access to the Module Market.
• Administrative access in RMS to edit Property Options and module configuration settings.

Information

How the integration works

The integration is triggered when a tax invoice is created in RMS. RMS constructs the invoice payload and sends it to ClearTax, which validates the data and forwards it to LHDN's MyInvois portal. When MyInvois accepts the invoice, it returns an e-Invoice No (Document ID). This number is stored against the invoice in RMS and displayed on the reprinted tax invoice between the Invoice No and A/R No fields.

If ClearTax rejects the payload, the API error is shown to the user at the point of invoice creation. The invoice is not flagged as e-invoiced in this case. After correcting the underlying issue, the user can reprint the invoice to retry the submission.

Activation conditions

The integration is only active for an invoice when all three conditions are true:

• The Property Country is set to Malaysia.
• The E-Invoice module is enabled on the Property.
• ClearTax is selected as the e-invoicing partner on the Property.

Key terms

• TIN (Tax Identification Number) - the tax identification number issued to the business by LHDN. Entered in the module configuration in RMS.
• BRN (Business Registration Number) - the company registration number issued by the Companies Commission of Malaysia (SSM). Entered in the module configuration in RMS.
• SST (Sales and Service Tax) - the tax framework applicable to most hospitality services in Malaysia. The SST registration number is entered in the module configuration in RMS.
• TTX (Tourism Tax) - the tourism tax imposed on accommodation services in Malaysia. The Tourism Tax registration number is entered in the module configuration in RMS.
• Access Token - the API authentication token provided by ClearTax, used to authorise each invoice submission from RMS.
• NRIC (National Registration Identity Card) - the identity document for Malaysian citizens and permanent residents. Used as the ID type in the e-invoice payload when a guest's country of residence is Malaysia.
• e-Invoice No - the Document ID returned by LHDN's MyInvois portal when an invoice is accepted. Displayed on the reprinted tax invoice.
• LHDN (Lembaga Hasil Dalam Negeri Malaysia) - Malaysia's Inland Revenue Board and the government authority administering mandatory e-invoicing.
• MyInvois - the LHDN government portal for registering and validating e-invoices. RMS does not call MyInvois directly; ClearTax acts as the registered intermediary.

Step 1 - Activate

1. Confirm the Property Country is set to Malaysia.
2. Activate the ClearTaxE-Invoice module for the Property via the Module Market.
3. Select ClearTax as the e-invoicing partner and record the ClearTax API credentials and the error notification email address.

Step 2 - Configure the module

Once the module is activated, open the module configuration and enter the following credentials provided by ClearTax.

Step 3 - Verify guest and company ID types

The integration determines the ID type to include in the e-invoice payload based on the Country of Residence recorded on the Guest Profile in RMS:

Before go-live, review Guest Profiles and Company accounts that will be used as the Bill To party on tax invoices and confirm:

• The Country of Residence is set correctly (Malaysia or the guest's home country).
• The Passport No field contains the correct NRIC number (for Malaysian guests) or passport number (for foreign guests).

Step 4 - Test

1. Create a test reservation and post charges across at least one revenue head.
2. Settle the reservation and issue a tax invoice.
3. Confirm the invoice is submitted to ClearTax and an e-Invoice No is returned.
4. Reprint the tax invoice and confirm the e-Invoice No field appears between Invoice No and A/R No on the printed output.
5. Repeat the test using a Company account and a Travel Agent account as the Bill To party.

Bill To Information

Daily Use

Issuing a tax invoice

When a tax invoice is created in RMS, the integration submits it to ClearTax automatically. No additional action is required beyond raising the invoice as normal. The e-Invoice No returned by MyInvois is stored against the invoice in RMS and shown on all subsequent reprints.

e-Invoice No on the reprinted tax invoice

Once an invoice is accepted by MyInvois, the e-Invoice No is displayed on the reprinted tax invoice between the Invoice No and A/R No fields. This applies to all tax invoices for Malaysian Properties where the ClearTax module is active. If the e-Invoice No is blank on a reprint, the submission may have failed - check the error notification and retry by reprinting the invoice.

Tax codes

The tax type sent in the e-invoice payload is derived from the charge type's tax configuration in RMS. Malaysian hospitality properties typically use Service Tax (SST code 02) for accommodation and related services. Confirm that each Charge Type in RMS is mapped to the correct Malaysian tax code - incorrect tax codes are one of the most common causes of ClearTax rejections.

Foreign currency invoices

For invoices issued in a currency other than Malaysian Ringgit (RM), the exchange rate is included in the e-invoice payload sent to ClearTax. Ensure the exchange rate for each foreign currency is kept up to date in RMS so the correct rate is reflected in the submitted invoice.

Reporting

After saving your credentials, verify the integration is working by reviewing transmitted invoices in the ClearTax Tax Invoice Export report.

In the side menu of RMS, go to Reports > Accounting > ClearTax Tax Invoice Export.

1. Set the date range to cover a period where invoices have been generated.
2. Select Malaysia from the Country filter.
3. Run the report.
   Each row represents one invoice that has been transmitted to ClearTax.
   Check the Invoice Status column. Invoices showing as Reported have been successfully transmitted.
   Any showing as Not Reported or Failed indicate a transmission issue - review your credentials and contact ClearTax support if the problem persists.

Common Setup Issues

• Issue: The E-Invoice module is not available in the Module Market. Fix: Confirm the Property Country is set to Malaysia in Setup > Property Options > Property Information. The module is only shown for Malaysian properties.
• Issue: ClearTax rejects the invoice with a tax code error. Fix: Confirm the Charge Type's tax configuration is mapped to the correct Malaysian tax code. Service Tax should use SST code 02. Check ClearTax's error message for the specific code mismatch.
• Issue: The ID type shows as "Passport" in ClearTax for a Malaysian guest. Fix: Open the Guest Profile and confirm the Country of Residence is set to Malaysia and the NRIC number is entered in the Passport No field. If Country of Residence is blank, RMS does not default to Malaysia.
• Issue: No e-Invoice No appears on the reprinted tax invoice. Fix: The submission may have failed at the time of invoice creation. Check for a ClearTax error notification and correct the underlying data (credentials, ID type, or tax code). Reprint the invoice to retry the submission.
• Issue: ClearTax returns an exchange rate error for a foreign currency invoice. Fix: Confirm the exchange rate for the foreign currency is configured and up to date in RMS. An outdated or missing rate will cause the payload to fail validation.
• Issue: The Access Token is rejected by ClearTax. Fix: Access Tokens can expire or be regenerated by ClearTax. Contact ClearTax to confirm the token is still active and update the Access Token field in the module configuration in RMS.

FAQs

Does ClearTax cost extra?

ClearTax is a separately contracted service. The Property must hold its own ClearTax account and API credentials. RMS does not bill for ClearTax usage.

Which businesses are required to use e-invoicing in Malaysia?

Malaysia's e-invoicing mandate is being phased in from August 2024 based on annual revenue. Consult your tax adviser or refer to LHDN's official guidance to confirm when your business is required to comply.

Can the integration be tested before going live?

Yes. ClearTax provides a sandbox environment with sandbox credentials. Configure the integration using the sandbox Access Token and run end-to-end tests before switching to production credentials.

What if the Property is part of a multi-property group with properties in different countries?

Activation is per Property. Only Properties with Country set to Malaysia and the E-Invoice module enabled will use the integration. Properties in other countries are unaffected.

Is this the same module used for ClearTax India?

The E-Invoice module in RMS supports multiple countries, but the configuration and behaviour differ by country and the correct module needs to be active.

Related Articles

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• ClearTax E-Invoice Integration - India