The Inland Revenue Board of Malaysia (IRBM) has published an updated version of the e-Invoice Guideline and the e-Invoice Specific Guideline increasing the exemption threshold from RM500,000 to RM1 million annual turnover/revenue. This change exempts the smallest category of taxpayers from mandatory e-invoicing compliance.
What’s changing?
Previous exemption: Taxpayers with annual turnover or revenue of less than RM500,000 (≈€105,000) were exempt.
New exemption: Taxpayers with annual turnover or revenue up to RM1 million (≈€210,000) are now exempt.
This eliminates the final implementation phase previously scheduled for 1 July 2026.
Implementation timeline
|
Phase |
Targeted Taxpayers |
Implementation Date |
Status |
|
1 |
Taxpayers with annual turnover/revenue >RM100 million |
1 August 2024 |
Implemented (no change) |
|
2 |
Taxpayers with annual turnover/revenue >RM25 million and up to RM100 million |
1 January 2025 |
Implemented (no change) |
|
3 |
Taxpayers with annual turnover/revenue >RM5 million and up to RM25 million |
1 July 2025 |
Implemented (no change) |
|
4 |
Taxpayers with annual turnover/revenue >RM1 million and up to RM5 million |
1 January 2026 |
No change |
|
5 |
Taxpayers with annual turnover/revenue up to RM1 million |
1 July 2026 |
CANCELLED – Now EXEMPT |
Each phase includes a six-month interim relaxation period during which IRBM will not undertake prosecution action for non-compliance, provided taxpayers issue consolidated e-invoices as required.
What does this mean for businesses?
For taxpayers with turnover between RM500,000 and RM1 million: These businesses are no longer required to implement mandatory e-invoicing from 1 July 2026.
For taxpayers with turnover exceeding RM1 million: There is no change to existing compliance obligations. Businesses must continue to comply according to their applicable implementation phase.
For future updates on Malaysia and similar developments in other countries, follow our Regulatory Analysis page.
