Latest e‑Invoice Implementation Timeline (Update 5 June 2025)

Here’s a clear summary of the latest e‑Invoice implementation timeline in Malaysia as per the IRBM update on 5 June 2025:

e-Invoicing Implementation Phases

Key Points

• Relaxation period: Each phase includes a 6‑month relaxation period with no enforcement, during which:
  1. issue consolidated e-Invoice for all activities and transactions
  2. issue consolidated self-billed e-Invoice for all self-billed circumstances
  3. input any information / details in the “Description of Product or Service” field in the consolidated e-Invoice or consolidated self-billed e-Invoice.
  4. not to issue individual e-Invoice or individual self-billed e-Invoice, even if the buyer (in the case of e-Invoice) / supplier (in the case of self-billed e-Invoice) has made a request for an individual e-Invoice or individual self-billed e-Invoice to be issued provided that the taxpayers comply with item (i) or (ii) above.

• Additionally, the IRBM will not undertake any prosecution action under Section 120 of the Income Tax Act 1967 during the interim relaxation period on non-compliance of the e-Invoice requirements, provided that taxpayers comply with the requirements mentioned at the above.

• Individual e‑Invoice requirement: Starting 1 Jan 2026, any single transaction > RM 10,000 must be issued as an individual e‑invoice (no consolidations).

Early Adoption & Special Cases 

• • Voluntary implementation is allowed before mandatory dates.
  • New businesses (incorporated 2023–2025) with turnover ≥ RM 500,000 must start by 1 Jul 2026; below RM 500,000 remain exempt for now.
  • If the taxpayer’s annual turnover or revenue reaches / exceeds RM500,000 in YA2026 or thereafter, the taxpayer is required to implement starting from 1 January in the second year following the YA in which the total annual turnover or revenue reaches / exceeds RM500,000.

Example:
Mr. Lim started his sole proprietorship, Lim Mini Mart, on 1 January 2025. In YA2025 (1 January 2025 – 31 December 2025), his annual revenue was RM185,000. Since this amount is below the RM500,000 threshold and all exemption conditions are met, Mr. Lim is not required to implement e-Invoice.

In YA2027 (1 January 2027 – 31 December 2027), his revenue increased to RM630,000. As it has now exceeded RM500,000, Mr. Lim will be required to implement e-Invoice starting from 1 January 2029 (i.e., the second year after the year in which his revenue crossed the threshold).

How We Can Help

At HTL, we offer end-to-end support for e-Invoice readiness:

• • e-Invoicing compliance review
  • System setup (manual or API)
  • Internal workflow design
  • Staff training & onboarding
  • Ongoing support and advisory

Contact us today to stay ahead of the curve and avoid non-compliance when e-Invoicing becomes mandatory.