Running a car workshop in is no easy task. Whether you specialise in general repairs, routine servicing, or more complex diagnostics and bodywork, daily operations involve juggling parts suppliers, walk-in customers, payment delays, and manual documentation. As the government pushes forward with digitalisation, workshops and repair shops are now expected to adopt e-invoicing as part of the Inland Revenue Board of Malaysia (IRBM) nationwide compliance effort.
This guide explains what e-invoicing means for automotive service businesses, the scenarios that require compliance, and how to stay financially stable while transitioning to this new system.
Read our comprehensive e-invoicing Malaysia guide for the latest implementation timelines and general regulations.
What is E-Invoicing for Car Workshops?
E-invoicing refers to the electronic issuance and validation of invoices via IRBM’s MyInvois platform. Under the e-invoicing mandate, all registered businesses, including car workshops, auto repair centres, and vehicle service shops, will be required to issue structured digital invoices for every taxable transaction.
Unlike traditional paper receipts or WhatsApp price summaries, e-invoices must include specific buyer-seller details and go through a real-time validation process with IRBM before they are considered final.
Whether you’re operating a small family-run bengkel kereta or a multi-branch repair business, e-invoicing compliance will soon become mandatory.
Transactions That Require E-Invoices for Workshops and Repair Shops
Income Transactions (Sales & Services)
- Car repair services (labour and diagnostics)
- Engine or component replacement
- Preventive maintenance (oil change, tyre alignment, brake servicing)
- Sale of spare parts or accessories
- Vehicle inspections or service packages
- Insurance claim jobs (if paid directly to workshop)
Expense Transactions (Business Costs)
- Spare parts purchases from suppliers
- Equipment and tool rental or maintenance
- Utility bills (electricity, water for workshop premises)
- Office and workshop rental
- Staff wages or subcontracted specialists
- Disposal or recycling fees for used parts
E-invoices must also be issued for deposit payments, progressive billing, or packages paid in instalments. Credit notes are required for returns or service disputes.
For the latest breakdown of transaction types and billing scenarios relevant to car workshops and repair services, refer to IRBM’s General e-Invoicing FAQ.
Common E-Invoicing Scenarios for Workshops
Walk-in Customers (Cash/Card Payment)
An e-invoice must be issued immediately after service is completed and payment is made — regardless of the amount.
Insurance Panel Jobs
If the workshop is paid by the insurance company, the e-invoice should be addressed to the insurer with full breakdowns of labour and parts.
B2B Fleet Maintenance
Workshops servicing corporate fleets or logistics companies on contract must issue e-invoices for each job or monthly billing cycle.
Advance Deposits or Package Sales
Collected a deposit before service? An e-invoice must be issued at the time of payment. When the remaining amount is paid, another e-invoice is required.
Returns and Refunds
If a customer is refunded or a service needs to be voided, a credit note e-invoice must be issued through the same system.
Challenges Workshops May Face During E-Invoicing Implementation
Manual Workflows
Many workshops still use handwritten invoices, Excel files, or WhatsApp for billing. Transitioning to a structured digital system may require a complete process overhaul.
System Compatibility
Your POS or invoicing system may not support XML or JSON formats needed for IRBM compliance. This may require investment in new software or third-party services.
Cash Flow Delays
Payments from insurance claims or corporate clients often take 30–90 days. This can put pressure on your cash flow, especially if you need to buy parts upfront or pay mechanics weekly.
Staff Readiness
Your front desk or billing staff may not be familiar with e-invoicing procedures, especially for correcting errors or issuing credit notes.
How Car Workshops Can Prepare for E-Invoicing
To get ahead of the curve and avoid last-minute disruptions, start preparing now:
- Review your current invoicing system and assess compatibility with the MyInvois platform
- If needed, subscribe to a compliant invoicing software or consult with a system integrator
- Create SOPs for issuing e-invoices, especially for progressive billing or deposit-based jobs
- Train staff on issuing, validating, and correcting e-invoices
- Allocate a budget for software upgrades, staff training, or temporary support
Financing Solutions to Support Your Transition
While e-invoicing can improve long-term efficiency, the short-term costs of setup, integration, and process changes can be a burden, especially for workshops running on tight margins or handling delayed payments.
Funding Societies offers financing options tailored to help workshops and service providers stay liquid throughout the transition.
Invoice Financing – Don’t Wait to Get Paid
If you issue e-invoices to insurance companies or fleet clients with long payment terms, invoice financing lets you unlock that cash upfront.
- Credit line up to RM1 million
- Tenure up to 120 days
- Shariah-compliant option available
SME Micro Financing – Fast, Flexible Capital
Need quick funds to upgrade your invoicing system or hire consultants? Micro Financing gives you fast access to working capital with no collateral required.
- Financing up to RM200,000
- Use it for system upgrades, POS integration, staff onboarding
Islamic Financing
Prefer Shariah-compliant options for your business needs? Islamic Financing offers access to capital that aligns with Islamic principles without compromising flexibility.
- Shariah-compliant financing options
- Structured to support ethical business growth with full transparency
Final Thoughts
E-invoicing is unavoidable for all businesses, and car workshops are no exception. Whether you’re running a standalone repair shop or part of a wider service chain, taking steps to prepare now will save you time, money, and stress later.
With the right tools, financing support, and training in place, your workshop can not only meet compliance requirements but also operate more efficiently in the long run.
