Malaysia’s Inland Revenue Board (HASiL) has announced an extension of the transition period for the last group of taxpayers to comply with the Malaysian e-invoicing requirements — those with annual turnover between RM 1 million and RM 5 million — from 12 months to 24 months. The extended window runs from 1 January 2026 to 31 December 2027. Taxpayers with annual turnover or revenue of less than RM 1 million remain exempted from the mandate and are not required to issue e-invoices.
What changed
The Malaysian Ministry of Finance confirmed that the last group of mandated taxpayers may continue issuing monthly consolidated e-invoices (rather than individual e-invoices) for all business activities and transactions throughout the transition period. HASiL has confirmed that no penalties will be imposed for non-compliance with individual e-invoice requirements during this window, provided taxpayers comply with the consolidated e-invoice obligation. The mandatory go-live date of 1 January 2026 for this group of taxpayers remains unchanged — only the duration of the relaxation has been extended.
Key timeline
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1 Jan 2026 – Mandatory go-live for the last group taxpayers with annual turnover between RM 1 million and RM 5 million
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1 Jan 2026 – 31 Dec 2027 – Extended transition: consolidated e-invoices permitted, no penalties for individual e-invoice non-compliance
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1 Jan 2028 – Full individual e-invoice compliance required for the last group of taxpayers
Other Enforcements by HASiL
In the same press release, HASiL disclosed that is actively using e-invoicing data to detect unreported income. Taxpayers in the already mandated first and second groups that have not reported income correctly may face audits and enforcement action.
The last group of businesses now have additional time to prepare their systems for full individual e-invoicing through MyInvois. During the transition period, monthly consolidated e-invoices remain a valid approach. Businesses are encouraged to use the extended window to complete integration and testing with their ERP or billing systems, rather than deferring implementation to the last moment.
For future updates on Malaysia and similar developments in other countries, follow our Regulatory Analysis page.
