e-Invoice Implementation Timeline Malaysia 2026

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e-Invoice Implementation Timeline in Malaysia (2026): Phases, Deadlines & Exemptions

Quick answer: As of July 2026, Malaysia’s e-Invoice mandate has reached Phase 4, covering businesses with annual turnover between RM1 million and RM5 million, effective since 1 January 2026. Businesses under RM1 million annual turnover are currently exempt, following LHDN’s decision in late 2025 to raise the exemption threshold and cancel the previously planned final phase.

The e-Invoice Rollout So Far

Malaysia’s e-Invoice mandate didn’t arrive all at once. LHDN phased it in by annual turnover, giving larger companies (with more resources and more complex invoicing) the earliest deadlines, and smaller businesses more time to prepare.

Phase	Annual Turnover	Start Date
1	Above RM100 million	1 August 2024
2	RM25 million to RM100 million	1 January 2025
3	RM5 million to RM25 million	1 July 2025
4	RM1 million to RM5 million	1 January 2026

If your business falls into Phase 4, you should already be issuing e-Invoices for your transactions. If you’re not sure which phase applies to you, the safest reference point is always your business’s audited or management-reported annual turnover for the relevant assessment year, not an estimate.

What Changed With the RM1 Million Exemption

Earlier plans included a further phase bringing smaller businesses into scope. In late 2025, LHDN raised the permanent exemption threshold to RM1 million in annual turnover and did not proceed with that additional phase. In practical terms, this means businesses under RM1 million turnover are not currently required to issue e-Invoices, though this could change in future policy updates, and some exceptions may still apply depending on your business activity.Because this kind of threshold has moved before, it’s worth checking your status periodically rather than assuming today’s exemption is permanent. The official LHDN implementation timeline page is the most reliable place to confirm current thresholds and dates.

Is There a Grace Period for Newly Mandated Businesses?

LHDN has historically allowed some relaxation of penalties for businesses newly brought into scope, while validation and reporting obligations still apply. Because the exact current grace period details can be updated, we’d rather point you to the source than guess: check the official e-Invoice General FAQ for the current position before assuming any leniency applies to your business.

What to Do If You're in Phase 4, or Newly Exempt

Confirm your turnover band. Use your most recent audited or management accounts, not a rough estimate, since this determines your obligations.
Register on the MyInvois Portal if you haven’t already, even if you plan to use accounting software later, so you have a fallback option.
Decide your submission method. Manual entry through the portal works for lower transaction volumes; software or API integration usually makes more sense once volume grows.
Keep records of your turnover calculation in case your obligations are ever queried.

How SASCO Can Help

Figuring out exactly which phase applies to your business, and what that means for your day-to-day invoicing, is easier with someone who tracks these changes as part of their job. Our accounting and compliance services cover e-Invoice readiness alongside your regular bookkeeping, so you’re not trying to interpret LHDN guidelines on your own.

Frequently Asked Questions

Which businesses are currently required to issue e-Invoices?

As of Phase 4 (from 1 January 2026), businesses with annual turnover of RM1 million and above are within scope, with earlier phases already covering turnover above RM5 million. Businesses under RM1 million are currently exempt.

What happens if my company's turnover crosses into a higher threshold mid-year?

LHDN assesses turnover based on your financial statements for the relevant assessment period. If you're unsure how a change in turnover affects your obligations, it's worth confirming directly with LHDN or a compliance advisor rather than assuming.

Am I exempt if my turnover is below RM1 million?

Generally yes, under the current exemption threshold set in late 2025. This applies to most businesses below that turnover level, though some specific transaction types may still require e-Invoice treatment regardless of overall turnover.

Where can I check the official implementation timeline?

The LHDN e-Invoice implementation timeline page is the authoritative source and is updated when thresholds or dates change.

e-Invoice Implementation Timeline Malaysia 2026 | SASCO