Running a tourism business comes with its own set of challenges. Seasonality, changing travel trends, and fluctuating visitor numbers often make cash flow unpredictable.
Now, with the Inland Revenue Board of Malaysia (IRBM) introducing mandatory e-invoicing, tourism operators need to prepare for additional operational changes. Whether you run a travel agency, hotel, homestay, or tour company, e-invoicing will soon apply to your bookings, payments, and transactions.
While the goal of e-invoicing is to improve transparency and tax compliance, it can also lead to upfront costs, system upgrades, and cash flow gaps if businesses are not prepared.
This guide explains how e-invoicing applies to the tourism industry, the types of transactions affected, and how Funding Societies can help your business stay financially stable during the transition. For the comprehensive guide on e-invoicing that covers the latest timelines and other industries, read our e-invoicing Malaysia guide here
What E-Invoicing Means for Tourism Operators
From 1 August 2024, businesses with over RM100 million in annual turnover will need to start issuing e-invoices. Other businesses, including tourism players, will follow based on their revenue bracket.
Tourism businesses often deal with complex bookings, package deals, commissions, and partnerships, which makes invoicing and tax reporting more complicated.
With e-invoicing, businesses will need to:
- Issue e-invoices for every service provided, whether to tourists, travel agencies, or corporate clients
- Record income from ticket sales, tours, accommodation, rentals, and guide services
- Maintain proper e-invoices for expenses like transportation, vendor payments, or platform fees
- Manage deposits, cancellations, and refunds using credit notes issued via e-invoice
What Types of Transactions Require E-Invoices in the Tourism Industry
Based on IRBM’s official tourism guidelines, here are the income and expense types that need to be supported by e-invoices:
Income-Generating Transactions:
- Tour packages (domestic or international)
- Accommodation (hotels, homestays, resorts)
- Transportation services (bus, van, car rental, airport transfers)
- Ticketing services (theme parks, tourist attractions)
- Tour guide fees or interpretation services
- Sales of travel insurance or merchandise
- Commissions from other tourism partners or platforms
Expenses That Require E-Invoices:
- Subcontracted transportation or tour services
- Accommodation booked for customers via third-party providers
- Payments to travel platforms, OTA (online travel agencies) fees
- Maintenance and rental of vehicles or equipment
- Marketing, online ads, and promotional fees
- Utilities, insurance, staff salaries, and outsourced services
Keeping accurate e-invoices for both income and expenses will help avoid tax issues and maintain transparent financial records.
Common E-Invoicing Scenarios for Tourism Businesses
Tourism operators handle many unique payment scenarios. Here’s how they work under e-invoicing rules:
Deposits & Advance Payments
Issue an e-invoice when a deposit or upfront payment is received. A final e-invoice should be issued once the tour or service is completed.
Package Deals
Whether the package includes transport, accommodation, and attraction tickets, the e-invoice must reflect the full amount or itemised breakdown based on agreement.
Agent or Platform Sales
If a travel agent or online platform collects payment on your behalf, you must still issue an e-invoice to them (or the customer, depending on the arrangement).
Cancellations & Refunds
Any refunds to customers require an e-invoice credit note to be issued for tax compliance.
Stay compliant and updated on specific e-invoicing guidelines for your tourism company on the IRBM portal.
Steps to Implement E-Invoicing for Tourism Operators
Tourism businesses can start preparing by following these steps:
Step 1: Review Your Booking System
Check if your reservation, booking, or POS system can support e-invoicing or integrate with IRBM’s MyInvois portal.
Step 2: Choose a Compliant E-Invoicing Provider
Select a solution that handles invoice validation, corrections, refunds, and secure storage for 7 years.
Step 3: Set Standard Operating Procedures
Clarify how your business handles deposits, agent bookings, refunds, and package deals in terms of invoicing.
Step 4: Train Your Team
Ensure your reservation staff, finance, and customer service teams understand when and how to issue e-invoices.
Step 5: Start With Key Services First
Pilot e-invoicing with a few popular services (e.g. accommodation or local tour packages) before expanding across your full offering.
Overcoming Cash Flow Gaps While Your Tourism Business Transitions to E-Invoicing
Managing cash flow has always been one of the biggest challenges for tourism businesses.
Many operators depend on payments from travel agents, online booking platforms, or corporate clients. And these payments often take weeks or even months to clear.
Seasonality makes cash flow even more unpredictable. During off-peak months, many businesses struggle to cover fixed costs like rent, utilities, and maintenance while waiting for bookings to pick up again.
The introduction of e-invoicing adds another layer of cost for SMEs in the tourism sector. Businesses may need to invest in:
- Software upgrades or booking system integration to comply with MyInvois
- Staff training to handle e-invoice issuance, refunds, and cancellations properly
- Additional admin work to manage multiple invoicing scenarios
- Cash flow buffers to handle delayed payments from agents or corporate customers
Without sufficient working capital, tourism businesses risk slowing down operations, reducing marketing activities, or even missing out on new booking opportunities due to cash flow constraints.
This is where Funding Societies can help.
With flexible financing solutions, tourism businesses can access short-term working capital to manage operational expenses, cover supplier payments, or prepare for peak travel seasons — without disrupting daily operations.
Invoice Financing
Convert your issued e-invoices into up to RM1 million upfront working capital.
Invoice Financing is the ideal solution for covering tour expenses, transport costs, or staff salaries while waiting for customer or agent payments.
Micro Financing
Fast, collateral-free financing of up to RM200,000.
Ideal for smaller operators to fund marketing campaigns, booking system upgrades, or pre-season preparations.
Property-Backed Secured Financing
Access larger financing amounts of up to RM2 million using property as collateral. Ideal for established tourism businesses looking to expand, invest in new locations, or manage larger operational costs such as property upgrades or long-term projects.
Tourism demand may fluctuate, but your business expenses never stop. Plan ahead for the e-invoicing transition and use financing to keep operations running smoothly, especially during peak seasons or expansion periods.
E-Invoicing Will Professionalise the Tourism Industry
Adopting e-invoicing can help tourism businesses build trust with partners, stay tax-compliant, and operate more efficiently in the long run.
With early preparation and the right financing partner, your tourism business can turn this compliance requirement into an opportunity to modernise and scale.
