Debit Note (Malaysia)
DEBIT NOTE
DEBIT NOTE
Issued by: [Seller Name] | SSM No.: [Seller S S M]
[Seller Address]
SST Reg. No.: [Seller S S T Reg]
Debit Note No.: [Debit Note Number] | Debit Note Date: [Debit Note Date]
Issued To: [Buyer Name] | SSM / NRIC No.: [Buyer S S M]
[Buyer Address]
Original Invoice Reference
This Debit Note is issued as an upward adjustment to the following original invoice:
Original Invoice No.: [Original Invoice Number] | Original Invoice Date: [Original Invoice Date]
LHDN e-Invoice UIN (if applicable): [Lhdn U I N]
Reason for Debit: [Reason For Debit]
Additional Charges
[Debit Description]
Additional Charge Subtotal (excl. SST): [Debit Subtotal]
Additional SST: [Sst Adjustment]
TOTAL DEBIT AMOUNT: [Total Debit Amount]
[Revised Total]
Notes
This Debit Note increases the amount payable by [Buyer Name] by [Total Debit Amount]. Please arrange payment of this additional amount by the due date on your original invoice or as otherwise agreed.
For SST purposes: the additional SST of [Sst Adjustment] will be included in [Seller Name]'s SST return for the relevant taxable period under the Service Tax Act 2018 (Act 807) / Sales Tax Act 2018 (Act 806) as applicable.
For LHDN e-Invoice purposes: where this seller is subject to the e-Invoice mandate under the Income Tax Act 1967 (Act 53), a Debit e-Invoice referencing the original e-Invoice UIN has been or will be submitted to LHDN's MyInvois Portal for validation prior to issuance.
Authorised Signatory
________________
Signature
What Is a Debit Note (Malaysia)?
A Debit Note in Malaysia gives formal notice of the matter it concerns to the recipient.
The Debit Note is the mirror image of a Credit Note: while a Credit Note reduces a buyer's liability, a Debit Note increases it. Both documents are essential accounting instruments under the Income Tax Act 1967 (Act 53) and form part of the LHDN e-Invoice framework introduced from 1 August 2024. Under LHDN's e-Invoice guidelines, a Debit Note (or 'Debit e-Invoice') must be submitted through LHDN's MyInvois Portal or via API to increase the value of a previously validated e-Invoice. The Debit Note must reference the original e-Invoice's Unique Identifier Number (UIN) assigned by LHDN.
For SST-registered businesses under the Service Tax Act 2018 (Act 807), a Debit Note issued by a supplier increases the supplier's output service tax liability and correspondingly increases the buyer's input tax claim. The Debit Note must state the original Tax Invoice number, the additional amount charged, and the corresponding additional SST, with proper records maintained for Royal Malaysian Customs Department (RMCD) audit purposes under Section 47 of the Service Tax Act 2018.
In construction contracts governed by the PAM Contract 2018 or the CIDB Standard Form of Contract, a Debit Note may be issued by the main contractor to a subcontractor to recover costs — for example, back-charges for site cleaning, rectification of defective work, or shared facility costs — where the subcontract agreement permits such deductions. A Debit Note in this context provides a documented record of the recovery claim before any set-off against the subcontractor's payment certifications.
The legal framework governing the Debit Note (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Debit Note (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Companies Act 2016 (Act 777) sets the foundational requirements.
When Do You Need a Debit Note (Malaysia)?
A Debit Note in Malaysia is issued in several situations where a previously issued invoice requires an upward adjustment.
A Debit Note is needed when a Malaysian supplier discovers after issuing an invoice that the price used was lower than the agreed contract price — for example, if a price list was updated but the incorrect rate was applied — and issues a Debit Note to recover the undercharged amount.
A Debit Note is required when additional charges — such as freight costs, insurance, customs duties paid on behalf of the buyer, or storage fees — were not included in the original invoice and need to be billed separately.
A Debit Note is needed under LHDN's e-Invoice mandate when a previously validated e-Invoice understates the price or quantity — the Debit e-Invoice must be submitted through LHDN's MyInvois Portal referencing the original e-Invoice's UIN to effect the upward correction.
A Debit Note is required when an SST-registered Malaysian service provider discovers that the original Tax Invoice did not include service tax that should have been charged under the Service Tax Act 2018 (Act 807), and issues a Debit Note to correct the SST output liability.
A Debit Note is needed in construction contracts when a main contractor back-charges a subcontractor for costs incurred due to the subcontractor's default — for example, overtime labour costs to rectify defective work — with the Debit Note serving as a formal claim document under the Construction Industry Payment and Adjudication Act 2012 (CIPAA).
A Debit Note is issued by a Malaysian landlord to a commercial tenant when additional charges arise under a tenancy agreement — such as a water or electricity overconsumption charge, an air-conditioning maintenance contribution, or a building management fee increase — that were not itemised in the original monthly rental invoice.
What to Include in Your Debit Note (Malaysia)
A Malaysia Debit Note must include the following essential fields.
Debit Note Label: Clearly label the document 'DEBIT NOTE' to distinguish it from an invoice or credit note. For LHDN e-Invoice Debit Notes, the correct e-Invoice type code must be used in the MyInvois Portal submission.
Debit Note Number: Assign a unique sequential Debit Note number, distinct from invoice and credit note numbering series.
Debit Note Date: State the issue date. For SST purposes under the Service Tax Act 2018 (Act 807), the date determines the taxable period in which the additional SST must be reported.
Original Invoice Reference: Reference the original invoice number and date to which the Debit Note relates. For LHDN e-Invoice Debit Notes, include the original e-Invoice's LHDN-assigned Unique Identifier Number (UIN).
Seller Details: Full legal name, SSM registration number, registered address. Include SST registration number if the seller is SST-registered.
Buyer Details: Full legal name, SSM registration number, address.
Reason for Debit: State the reason for the additional charge — undercharge correction, additional goods supplied, additional services, freight charges, back-charge, or duty recovery. Required for LHDN audit purposes under Section 82 of the Income Tax Act 1967 (Act 53).
Itemised Additional Charges: List each additional line item with description, quantity, unit price, and additional amount. Show any additional SST separately if applicable.
Total Debit Amount: State the total additional amount charged in Malaysian Ringgit (RM), including the SST component.
Revised Invoice Total: Optionally show the revised total amount due — original invoice amount plus debit note amount.
Additional compliance elements for a Debit Note (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Debit Note (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/business/corporate/debit-note-malaysia
"Debit Note (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/business/corporate/debit-note-malaysia.
@misc{formslegal-debit-note-malaysia,
author = {{Forms Legal}},
title = {Debit Note (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/business/corporate/debit-note-malaysia}},
note = {Free legal document template. Based on Companies Act 2016 (Act 777)}
}Also available for these jurisdictions:
Frequently Asked Questions
A Debit Note and an Invoice are both documents that increase a buyer's liability to a seller in Malaysia, but they serve different functions. An Invoice is a primary document issued at the time of sale to request payment for goods or services delivered. A Debit Note is a supplementary document issued after an Invoice to adjust the invoice upward — for example, to correct an undercharge, add omitted charges, or recover additional costs. An Invoice stands alone as a complete transaction record, while a Debit Note always references a prior Invoice and cannot stand alone. For LHDN's e-Invoice framework under the Income Tax Act 1967 (Act 53), both are recognised document types — a Debit e-Invoice must reference the original e-Invoice's LHDN Unique Identifier Number (UIN) and is submitted through the MyInvois Portal. For SST purposes under the Service Tax Act 2018 (Act 807), a Debit Note increases the supplier's output tax and the buyer's input tax in the period it is issued.
Yes, a Debit Note (Debit e-Invoice) is required under LHDN's e-Invoice framework in Malaysia whenever a previously validated e-Invoice needs to be adjusted upward. Under LHDN's e-Invoice guidelines effective from 1 August 2024 for large businesses (annual turnover above RM100 million) and subsequent phases for smaller businesses, an upward adjustment to a validated e-Invoice cannot be made by modifying the original e-Invoice — instead, a Debit e-Invoice must be submitted through LHDN's MyInvois Portal or via API. The Debit e-Invoice must: (1) reference the original e-Invoice's Unique Identifier Number (UIN); (2) state the reason for the additional charge; (3) show the additional amount and any SST adjustment; and (4) receive LHDN validation before it is issued to the buyer. Businesses subject to the e-Invoice mandate must maintain records of all Debit e-Invoices for at least seven years under Section 82 of the Income Tax Act 1967 (Act 53).
Yes, a buyer can dispute a Debit Note issued by a Malaysian supplier. A Debit Note represents a claim by the supplier for additional payment beyond what was originally invoiced. If the buyer believes the Debit Note is incorrect, unjustified, or not supported by the original contract terms, the buyer may: (1) send a written dispute notice to the supplier within a reasonable time; (2) withhold payment of the Debit Note amount pending resolution; and (3) seek resolution through negotiation, mediation, or, if the parties cannot agree, through adjudication under the Construction Industry Payment and Adjudication Act 2012 (CIPAA) for construction disputes, or through the courts under the Contracts Act 1950 (Act 136). In commercial supply agreements, the buyer's right to dispute a Debit Note and the procedure for resolving such disputes should be expressly addressed in the supply or service agreement to avoid uncertainty.
Yes, a Debit Note affects SST for both the seller and the buyer in Malaysia. When an SST-registered supplier under the Service Tax Act 2018 (Act 807) issues a Debit Note for additional charges that include service tax, the supplier must increase its output service tax liability by the additional SST amount — this is reported in the supplier's bi-monthly SST return filed with the Royal Malaysian Customs Department (RMCD). If the buyer is also SST-registered and entitled to input tax credits, the buyer may claim an additional input tax credit for the SST shown in the Debit Note. The Debit Note must clearly show the original Tax Invoice number, the additional taxable amount, and the corresponding additional SST amount. RMCD auditors review Debit Notes during SST audits to verify that both the supplier's output tax and the buyer's input tax are correctly adjusted.
A Debit Note (Malaysia) does not legally require a lawyer in Malaysia, and individuals and businesses may draft and execute the document independently. The Companies Act 2016 (Act 777) does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified Malaysia lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Federal Court of Malaysia has jurisdiction over disputes arising from this type of document, and Companies Commission of Malaysia (SSM) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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