Which businesses must issue e-Invoices, and from when?
LHDN's timeline: above RM100 million from 1 August 2024, RM25m to RM100m from 1 January 2025, RM5m to RM25m from 1 July 2025, and up to RM5 million from 1 January 2026. Taxpayers with annual turnover or revenue below RM3 million are exempt, per LHDN's page updated 30 August 2026.
LHDN's implementation timeline, last updated 30 August 2026, phases e-Invoicing by annual turnover or revenue:
- 1 August 2024: above RM100 million
- 1 January 2025: above RM25 million, up to RM100 million
- 1 July 2025: above RM5 million, up to RM25 million
- 1 January 2026: up to RM5 million
- Exemption: taxpayers with annual turnover or revenue below RM3 million are exempt. Earlier announcements used lower figures (RM1 million, and RM500,000 in June 2025); the current official figure is RM3 million. The exemption does not apply where the group carve-out in the General Guideline applies, so check it if you have corporate shareholders, a holding company or related companies
Which turnover counts: General Guideline v4.8 uses the turnover or revenue in the audited financial statements for financial year 2022, or the revenue in the year of assessment 2022 tax return if there are no audited statements. A change of year end in 2022 is pro-rated to 12 months, and later changes in turnover do not move your phase.
Relaxation period: Specific Guideline v4.9 gives an interim relaxation period during which LHDN does not prosecute for certain non-compliance if the consolidation conditions are met. For the up-to-RM5 million group it runs until 31 December 2027. Consolidated e-Invoices are due within seven calendar days after the month end.
Confirm your own phase and TIN on MyInvois, and check hasil.gov.my for later changes.
Legal basis
- Income Tax Act 1967, s.120 (non-compliance)
- LHDN e-Invoice General Guideline v4.8
- LHDN e-Invoice Specific Guideline v4.9
Sources
Applies to 2026 (confirm latest LHDN updates) · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- What is the difference between bookkeeping and accounting in Malaysia?Bookkeeping is the day-to-day recording of transactions: sales, purchases, payments and receipts. Accounting uses those records to prepare financial statements, interpret results and support decisions and tax filing. Good bookkeeping comes first, because accounts can only be as reliable as the entries beneath them.
- Is a Sdn Bhd legally required to keep accounting records?Yes. Section 245 of the Companies Act 2016 requires every company, including its directors and managers, to keep accounting and other records that explain its transactions and financial position. This applies even to a new, dormant or loss-making company.
- How long must a Malaysian company keep its accounting records?A company must keep accounting records for seven years after the transactions they record were completed. For tax, documents must be kept for seven years from the end of the relevant year of assessment. Use whichever period ends later.
- What documents should a Malaysian company keep for bookkeeping?Keep every document that proves a transaction: sales and purchase invoices, receipts, bank statements, contracts, payroll records, and records of assets and loans. If a transaction is not supported by a document, it is hard to defend in an audit or tax review.
- Can I keep accounting records and receipts in digital form only?Electronic records are accepted if they are complete, readable, accessible and can be converted into writing. Documents issued electronically, such as e-Invoices, can stay electronic. If you scan a paper original, the Income Tax Act says to keep the paper original as well.