Who must issue e-invoices in Malaysia? Phases and the RM1 million exemption
A short answer for each turnover band, based on the LHDN phased timeline.
The answer depends on annual turnover. Phase 1 covers turnover above RM100 million and started on 1 August 2024. Phase 2 covers RM25 million to RM100 million from 1 January 2025. Phase 3 covers RM5 million to RM25 million from 1 July 2025. Phase 4 covers RM1 million to RM5 million from 1 January 2026, with a relaxation period that LHDN has extended to 31 December 2027. Businesses with turnover below RM1 million are exempt. LHDN updates its guidance, so confirm the position for your business on hasil.gov.my.
- Above RM100 million: from 1 August 2024.
- RM25 million to RM100 million: from 1 January 2025.
- RM5 million to RM25 million: from 1 July 2025.
- RM1 million to RM5 million: from 1 January 2026, relaxation to 31 December 2027.
How it works
Take your annual turnover from the latest audited accounts or the period that LHDN specifies.
Match it to a band in the timeline above.
Check the relaxation period for your phase. During relaxation, LHDN does not enforce penalties for non-compliance, according to its announcements.
Check the exceptions. LHDN has set conditions where a business under the exemption threshold still needs to comply, for example some group structures. Read the current guideline.
Prepare your data. Whichever way you connect to MyInvois, you need customer details, item descriptions, and the tax rate per line.
Legal framework
- LHDN (IRBM) e-Invoice Guideline — implementation timeline.
- LHDN (IRBM) announcements on the relaxation period and the exemption threshold.
- Income Tax Act 1967 (Act 53).
Frequently asked questions
Are micro-enterprises exempt?
Businesses with annual turnover below RM1 million are exempt under the announced threshold, subject to conditions in the guideline. Check the conditions for your structure.
What does the relaxation period mean?
It is a period during which LHDN says it will not take enforcement action for failing to comply with the e-invoice requirement. It does not change the phase in which you fall.
Which turnover counts?
LHDN defines the reference period and turnover in its guideline. Use the wording of the current guideline instead of estimating.
Where do I find the current dates?
On hasil.gov.my under e-Invoice, in the e-Invoice Guideline, the Specific Guideline and the announcements. Dates have been revised more than once.
Does 4invoices make me compliant with the mandate?
No. 4invoices does not submit e-invoices to MyInvois and does not guarantee compliance. It helps you prepare invoices with a tax rate per line, in any currency with an exchange rate, and download PDFs. The trial is free for 6 months without a card.