In this course · 1 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
No, if your annual turnover or revenue is below RM3 million (effective 1 September 2026). Online stores at RM3 million or more must issue e-invoices on the Inland Revenue Board (LHDN) phased dates. Group companies with a related entity of RM3 million or more are not exempt.
Businesses with annual turnover or revenue below RM3 million are exempt from issuing e-invoices (Inland Revenue Board, LHDN, timeline updated 30 August 2026). LHDN's FAQ says this applies to all categories of taxpayer, including individuals, partnerships and companies, and gives the example of a sole proprietor below RM3 million who is exempt from issuing e-invoices, including self-billed ones.
Exceptions. The exemption does not apply where the taxpayer has a non-individual shareholder with turnover of RM3 million or more, is a subsidiary of a holding company with turnover of RM3 million or more, or has a related company or joint venture at that level.
Effective date. The RM3 million exemption took effect on 1 September 2026, after the announcement on 30 August 2026. The LHDN FAQ (updated 4 September 2026) says no penalties apply to businesses that met it and had not issued e-invoices.
When the limit is crossed. A business that reaches RM3 million starts on 1 January of the second year after the year in which turnover reaches that level.
Turnover is tested on the taxpayer's own turnover, so check the LHDN FAQ if a group or related-company structure applies.
Legal basis and sources
The law
- Income Tax (Issuance of Electronic Invoice) Rules 2024 [P.U.(A) 265]
- Income Tax Act 1967, s.120(1)(d)
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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