Q&A on Malaysian E-Invoice for Pawnbroking Service
The Inland Revenue Board of Malaysia updated its frequently asked questions for specific industry on the implementation of e-Invoice in Malaysia on 26 August 2026. The frequently asked questions now introduced new guidance for the pawnbroking related transactions.
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What is the e-Invoice treatment for the granting of a pawn and the subsequent redemption or renewal of a pawn ticket?
The e-Invoice treatment depends on the specific transaction type:
Granting of a Pawn Loan: When a pawn loan is granted to a pawner, pawnbrokers are not required to issue an e-Invoice for the principal amount of the loan.
Redemption or Renewal of Pawn Ticket: Pawnbrokers are required to issue e-invoice on the following transactions if the pawners requests for an e-Invoice:
(1) ticket charges imposed by the pawnbroker; and
(2) interest charged upon redemption or renewal of the pawn ticket.
If an e-Invoice is not requested, a standard receipt will be issued, and the pawnbrokers are required to issue a consolidated e-Invoice within seven (7) days from the end of the month.
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Is an e-Invoice required to be issued for year-end accrued interest receivables recognised on unredeemed pawn loans?
An e-Invoice is not required to be issued for year-end accrued interest receivables recognised for accounting or tax purposes.
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Under the Pawnbrokers Act 1972, what is the e-Invoice treatment where a pledged item securing a loan is not redeemed within the prescribed period?
When a pledged item securing a loan is not redeemed within the prescribed period, the e-Invoice treatment depends on whether the ownership transfers automatically or through an auction process:
(1)
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Loans Not Exceeding RM200: Where a pledged item securing a loan not exceeding RM200 is not redeemed, ownership of the pledged item is automatically transferred to the pawnbroker without going through an auction process. In this scenario, pawnbrokers are required to issue a self-billed e-Invoice for the acquisition of the pledged item.
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(2)
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Loans Exceeding RM200: Where a pledged item securing a loan exceeding RM200 is not redeemed, the pledged item will be sold via an auction. The e-Invoice requirements on who purchases the item:
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If the pawnbroker purchases the pledged item from the auction, the pawnbroker is required to issue a self-billed e-Invoice for the purchase of the pledged item and an e-Invoice for the interest and other applicable charges applied.
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if a third-party bidder purchases the pledged item from the auction, the third-party bidder is required to issue a self-billed e-Invoice for the purchase of the pledged item. The pawnbroker is required to issue an e-Invoice for the interest and other applicable charges applied.
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What is the e-Invoice treatment for surplus monies arising from the auction of pledge items, including unclaimed surplus monies surrendered to the Accountant General’s Department (hereinafter referred to as “AGD”)?
Where an auction yields proceeds exceeding the total amount recoverable by the pawnbroker, the e-Invoice treatment for the resulting surplus monies is as follows:
(1)
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Surplus Monies Held on Trust or Returned to Pawner: Where the auction proceeds exceed the amount recoverable by the pawnbroker, and the surplus monies are held on trust for the pawner, no e-Invoice is required to be issued by the pawnbroker. Likewise, where the surplus monies are subsequently returned to the pawner, no e-Invoice is required.
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(2)
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Unclaimed Surplus Monies Surrendered to the AGD: Where surplus monies remain unclaimed and are subsequently surrendered by the pawnbroker to the AGD, no e-Invoice or self-billed e-Invoice is required to be issued.
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What is the e-Invoice treatment when a pawnbroker sells pledged items that were previously acquired by the pawnbroker?
When a pawnbroker sells pledged items that were previously acquired, the pawnbroker is required to issue an e-Invoice if the buyer requests for the e-Invoice.
If an e-Invoice is not requested, a standard receipt will be issued, and the pawnbrokers are required to issue a consolidated e-Invoice within seven (7) days from the end of the month.
KAIZEN Group, together with its associate firms in Malaysia, can help the clients to perform these compliances formalities so as to maintain the Malaysia company in good standing. Please call and talk to our professional accountants in Kaizen for further clarification.
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