In this course · 5 of 6
Course 5
E-invoicing for sellers
6 lessons · 6 min
- 1Does My Online Store Need to Issue MyInvois E-Invoices in Malaysia?
- 2E-Invoice Start Dates by Turnover in Malaysia: LHDN Timeline
- 3Who Issues the E-Invoice for Shopee, Lazada or TikTok Shop Orders?
- 4How a Consolidated E-Invoice Works for B2C Online Sales in Malaysia
- 5Why Must an Online Business Under RM3 Million Still Issue E-Invoices?
- 6E-Invoice Penalty and Relaxation Period for Online Sellers in Malaysia
The short answer
In three cases. A business under RM3 million is not exempt from e-invoicing if it has a non-individual shareholder, a holding company, or a related company or joint venture with turnover of RM3 million or more (Inland Revenue Board, LHDN, e-Invoice Guideline, section 1.6.10).
The Inland Revenue Board (LHDN) FAQ lists three situations, taken from section 1.6.10 of the e-Invoice Guideline, where a business below RM3 million cannot rely on the exemption:
- It has a non-individual shareholder (or equivalent) with annual turnover or revenue of at least RM3 million.
- It is a subsidiary of a holding company with turnover or revenue of at least RM3 million.
- It has a related company or joint venture with turnover or revenue of at least RM3 million. "Related company" has the meaning in section 2 of the Promotion of Investments Act 1986.
Example in the FAQ. A subsidiary with revenue of RM400,000 whose parent company has implemented e-invoicing is not exempt, and starts on 1 July 2026 (LHDN FAQ, updated 4 September 2026).
Crossing the line. A taxpayer exempt today that reaches RM3 million in a later year starts on 1 January of the second year after that year of assessment.
Practical check. Founders who run a store through a Sdn Bhd with a corporate shareholder, or who have sister companies, should check each entity's turnover.
Individuals who hold shares do not trigger the first test, because it refers to non-individual shareholders.
Legal basis and sources
The law
- Income Tax (Issuance of Electronic Invoice) Rules 2024 [P.U.(A) 265]
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.
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