The Malaysia e-Invoice implementation timeline is now in its final stages. The applicable date depends on annual turnover or revenue, while businesses below RM1 million may qualify for exemption only if they meet LHDN’s detailed conditions.
This guide summarises the current timeline and the key steps businesses should take.
Current Malaysia e-Invoice Implementation Timeline
| Annual turnover or revenue | Implementation date |
|---|---|
| More than RM100 million | 1 August 2024 |
| More than RM25 million and up to RM100 million | 1 January 2025 |
| More than RM5 million and up to RM25 million | 1 July 2025 |
| More than RM1 million and up to RM5 million | 1 January 2026 |
| Below RM1 million and eligible for exemption | Exempt, subject to LHDN criteria |
| Below RM1 million but not eligible for exemption | 1 July 2026 |
Important: Revenue below RM1 million does not automatically mean that a business is exempt. The ownership and group conditions below must also be considered.
Who Qualifies for the RM1 Million Exemption?
A taxpayer with annual turnover or revenue below RM1 million may generally qualify for exemption. However, the exemption does not apply when the taxpayer falls within certain group or ownership situations, including where:
- a non-individual shareholder or equivalent entity has annual turnover or revenue of at least RM1 million;
- the taxpayer is a subsidiary of a holding company with annual turnover or revenue of at least RM1 million; or
- the taxpayer has a related company or joint venture with annual turnover or revenue of at least RM1 million.
Businesses should review the complete LHDN criteria before relying on the exemption.
What If Revenue Later Reaches RM1 Million?
If an exempt taxpayer reaches or exceeds RM1 million in annual turnover or revenue in YA 2026 or a later year, e-Invoice generally becomes mandatory from 1 January in the second year after that year of assessment.
Different commencement rules may apply to newer businesses and taxpayers that do not satisfy the exemption criteria. The facts should be checked against the latest LHDN General FAQs.
Interim Relaxation for 2026 Implementation
Under the current LHDN General FAQs, eligible taxpayers with an implementation date of 1 January 2026 or 1 July 2026 may use the interim relaxation measures until 31 December 2027, subject to LHDN’s conditions.
The relaxation is not a full exemption. Businesses must still issue monthly consolidated e-Invoices and consolidated self-billed e-Invoices where applicable, and maintain adequate records.
What Businesses Should Do Now
- Confirm the correct implementation date and whether the RM1 million exemption criteria are met.
- Map sales, purchases, reimbursements and transactions that require self-billed e-Invoices.
- Choose a suitable submission method through MyInvois Portal, MyInvois e-POS or API integration.
- Test data, approval workflows and monthly reconciliation before live submission.
How HTL Can Assist
HTL & Co helps businesses assess e-Invoice obligations, review transaction flows, prepare implementation procedures and support compliance. Learn more about our e-Invoice implementation services.
If earlier implementation errors or omissions are identified, see our guide to the Malaysia e-Invoice SVDP 2026.
Official LHDN timeline updated: 7 December 2025
Information checked: 30 July 2026
Official References
- LHDN: e-Invoice Implementation Timeline
- LHDN: e-Invoice General FAQs
- LHDN: Current e-Invoice Guidelines
This article provides general information and should not be treated as advice for a specific transaction or business. Requirements may change; always refer to the latest LHDN guidance.
