Malaysia e-Invoicing deadlines by revenue tier (2026)
LHDN e-invoicing is now mandatory for every Malaysian business above the exemption threshold. Phase 1 (revenue above RM100 million) started on 1 August 2024, Phase 2 (RM25–100 million) on 1 January 2025, Phase 3 (RM5–25 million) on 1 July 2025 and Phase 4 (smaller businesses up to RM5 million) on 1 January 2026. Businesses below the exemption threshold do not have to issue e-invoices. LHDN raised that threshold from RM500,000 to RM1 million, and reports of General Guideline v4.8 (30 August 2026) say it is now RM3 million. Check the current guideline on the LHDN e-Invoice site before you rely on any figure.
Last updated 31 October 2026 · refreshed weekly
Implementation timeline
| Phase | Annual revenue / turnover | Mandatory from |
|---|---|---|
| 1 | Above RM100 million | 1 August 2024 |
| 2 | RM25 million – RM100 million | 1 January 2025 |
| 3 | RM5 million – RM25 million | 1 July 2025 |
| 4 | Above the exemption threshold, up to RM5 million | 1 January 2026 (relaxation period reported to run to 31 December 2027) |
| Exempt | Below the exemption threshold (RM1 million; reported as raised to RM3 million in 2026) | Not required, but may opt in |
⚠️ The exemption threshold and Phase 4 relaxation period have been revised several times. The 2026 figures above come from reports of LHDN's General Guideline v4.8 and still need to be confirmed on hasil.gov.my. We re-check this page every week.
Rules that apply to everyone in scope
- RM10,000 rule: from 1 January 2026, any single sale above RM10,000 needs its own e-invoice; it cannot be rolled into a consolidated e-invoice.
- Consolidated e-invoices (one monthly e-invoice for B2C sales where the buyer does not ask for one) must be submitted within 7 days after the end of the month.
- Self-billed e-invoices are needed for some purchases, for example from foreign suppliers or individuals who are not in business.
- Buyers can ask the supplier to cancel an e-invoice within 72 hours of validation.
MyInvois Portal, API or Peppol: which do you need?
- MyInvois Portal (free, manual): good for low volumes, under about 50 invoices a month.
- MyInvois API: your accounting/ERP system, or a middleware provider, submits invoices automatically. Best for most SMEs with cloud accounting software.
- Peppol: you send through an MDEC-accredited Peppol Service Provider, which also lets you exchange e-invoices with overseas Peppol networks. Best for exporters and groups with several entities.
Compare e-invoicing providers in Malaysia. Each profile shows whether the provider is MyInvois API-ready, Peppol-ready, or both.
Checklist before you choose a provider
- Confirm your phase from your audited revenue (YA2022 for Phases 1–3; later years for Phase 4).
- List every system that issues invoices (POS, e-commerce, ERP, billing).
- Ask the provider for an LHDN sandbox demo using your own invoice data.
- Check that they support self-billed, consolidated, credit-note and debit-note document types.
- Agree on per-document pricing and set-up fees in writing.
FAQ
Is e-invoicing mandatory for small businesses in Malaysia?
Only if your annual revenue is above the LHDN exemption threshold. That threshold was RM1 million, and reports of the August 2026 guideline say it is now RM3 million. Businesses above it but at or below RM5 million have been in scope since 1 January 2026.
What is the penalty for not issuing e-invoices?
Under section 120 of the Income Tax Act 1967, a fine of RM200 to RM20,000 or up to 6 months' imprisonment, or both, per offence. LHDN has not enforced penalties during relaxation periods.
Do I need Peppol?
No. Peppol is one of two ways to connect to MyInvois; the other is LHDN's own API. Peppol is most useful if you trade with Peppol networks overseas.
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