⚠️ This article is out of date. It was written in June 2026, before LHDN raised the e-Invoice exemption threshold to RM3 million (General Guideline v4.8, 30 August 2026). The thresholds and timeline below no longer reflect the current position, and most Malaysian SMEs are now exempt from issuing e-Invoices. Businesses that already implemented may stop immediately, with no penalty. Please read our current guide instead: e-Invoicing in Malaysia — most SMEs are now exempt. The historical content is kept below for reference only.
Malaysia's move to mandatory e-Invoicing via LHDN's MyInvois system started with the largest companies in 2024 and has been rolling down to smaller businesses in phases. By mid-2026, most SMEs are either already in scope or about to be.
The phased timeline
- 1 August 2024 — annual turnover above RM100 million
- 1 January 2025 — RM25 million to RM100 million
- 1 July 2025 — RM5 million to RM25 million
- 1 January 2026 — RM1 million to RM5 million
- 1 July 2026 — remaining businesses above the exemption line
Businesses with annual turnover below RM500,000 are currently exempt, though they can opt in voluntarily — and may need to handle self-billed e-Invoices when dealing with suppliers in scope.
What actually changes
Instead of simply issuing an invoice to your customer, in-scope businesses submit invoice data to LHDN for validation (via the MyInvois portal or API). The validated e-Invoice — with its unique identifier and QR code — is what your customer receives. Consolidated e-Invoices are allowed for many B2C transactions, submitted monthly.
Getting ready: a practical checklist
- Confirm your phase. Check your audited turnover for FY2022 (the reference year) against the thresholds above.
- Clean up master data. Validated e-Invoices need correct TINs, business registration numbers and addresses for you and your buyers.
- Choose your channel. Low volume? The free MyInvois portal may be enough. Higher volume needs accounting software with API integration.
- Map your transaction types. Sales, refunds/credit notes, self-billed purchases from exempt suppliers — each has its own e-Invoice treatment.
- Train whoever raises invoices. Rejected validations and 72-hour cancellation windows are new concepts for most admin teams.
Grace periods help — but don't wait
LHDN has historically allowed a six-month soft-landing for each phase (consolidated e-Invoices accepted for all transactions, no prosecution for honest non-compliance). It's breathing room, not a reason to delay — the businesses that struggle are the ones that start in the last month.
Rules and timelines are updated by LHDN from time to time — always check the latest official guidelines. Not sure which phase you fall into, or what your software needs? Talk to us — we set SMEs up for e-Invoicing as part of our accounting service.