Malaysia E-Invoice Latest Updates: RM 3 Million Exemption Threshold & Implementation Timeline
Updated: Sep 18
Updated: 8 September 2026
Malaysia’s e-Invoice implementation has undergone another important update.
On 30 August 2026, LHDN / HASiL updated the e-Invoice Guideline to Version 4.8 and increased the e-Invoice exemption threshold to RM3 million. Taxpayers with annual turnover or revenue below RM3 million may now qualify for exemption, subject to the prescribed conditions.
E-Invoice Implementation Timeline
LHDN implements e-Invoice progressively according to the taxpayer's annual turnover or revenue. Under Version 4.8, taxpayers below RM3 million may qualify for exemption, subject to the prescribed conditions.
Business Commencement 开始营业时 | Annual Turnover / Revenue 全年营业额 / 收入 | Implementation Date 实施日期 |
2022 or earlier 2022 或之前已营业 | YA2022 turnover / revenue above RM100m YA2022 收入 / 营业额超过 RM100m | 01.08.2024 |
YA2022 turnover / revenue from RM25m - RM100m YA2022 收入 / 营业额介于 RM25m - RM100m | 01.01.2025 | |
YA2022 turnover / revenue from RM5m - RM25m YA2022 收入 / 营业额介于 RM5m - RM25m | 01.07.2025 | |
YA2022 turnover / revenue from RM3m - RM5m YA2022 收入 / 营业额介于 RM3m - RM5m | 01.01.2026 | |
YA2022 was below RM3m, YA2023-YA2025 reached RM 3m YA2022 低于 RM3m, YA2023-YA2025 达到 RM 3m 例子 Example YA2022: RM 1.5m YA2023: RM 3.2m YA2024: RM 2.5m YA2025: RM 2.7m | 01.07.2026 | |
Turnover / revenue remains below RM3m and the taxpayer fulfils the exemption criteria 收入 / 营业额低于 RM3m，并符合豁免条件 | EXEMPTED 豁免 | |
Commenced between 2023–2025 开始营业 | Turnover / revenue reaches RM3m or more 收入 / 营业额达到或超过 RM3m | 01.07.2026 |
Turnover / revenue remains below RM3m and the taxpayer fulfils the exemption criteria 收入 / 营业额低于 RM3m，并符合豁免条件 | EXEMPTED 豁免 | |
Commenced in 2026 or later 2026 或之后开始营业 | Does not qualify for the LHDN e-Invoice exemption* 不符合 LHDN e-Invoice 豁免条件* | 01.07.2026 or actual business commencement date, whichever is later 01.07.2026 或实际开始营业日期，以较迟者为准 |
Turnover / revenue remains below RM3m and the taxpayer fulfils the exemption criteria 收入 / 营业额低于 RM3m，并符合豁免条件 | EXEMPTED 豁免 | |
Subsequently reaches RM3,000,000 for the first time in a later year 之后某一年首次达到 RM3,000,000 | 1 Jan of the second year following the threshold year 达到门槛年份之后的第二年的一月一日开始 Example 例子: If your annual turnover / revenue first reaches RM3 million in 2027, e-Invoice implementation starts on 1 January 2029. 如果全年营业额 / 收入在 2027 年第一次达到 RM3 million，e-Invoice 将从 2029 年 1 月 1 日开始实施。 | |
When Does the RM3 Million Exemption NOT Apply?
According to the latest LHDN e-Invoice rules, a taxpayer with annual turnover or revenue below RM3 million may still not qualify for the exemption if certain corporate relationships exist.
Sdn Bhd
One company holds 20% or more of the shares in another company
The shareholding is below 20%, but the company still has direct or indirect control over the other company’s operations
If any related company has annual turnover / revenue of RM3 million or more, the other related company may not qualify for the e-Invoice exemption even if its own turnover / revenue is below RM3 million.
When to implement e-Invoice?
Existing business that does not qualify for the RM3 million exemption → 1 July 2026
Business commencing from YA2026 onwards that does not qualify for the exemption → 1 July 2026 or actual business commencement date, whichever is later
Sole Proprietorship
If you operate multiple Enterprises, the annual turnover / revenue of all Sole Prop under the same individual must be combined to determine whether the RM3 million threshold has been exceeded.
The turnover of a Sdn Bhd and an Enterprise is not combined for this purpose.
🏢 Enterprise A — RM1,500,000
🏢 Enterprise B — RM1,200,000
🏢 Enterprise C — RM500,000.
Total Turnover: RM3.2 million
Once the combined turnover exceeds RM3 million, the taxpayer will no longer qualify for the exemption.
When to implement e-Invoice?
Combined turnover reaches RM3 million in YA2023, YA2024 or YA2025 → 1 July 2026
Initially qualifies for exemption but combined turnover first reaches RM3 million in YA2026 or later → 1 January of the second year following the YA in which the RM3 million threshold is reached
Already Started e-Invoice but Now Below RM3 Million — Can You Still Qualify for Exemption?
Some businesses with annual turnover or revenue between RM1 million and RM3 million had already started implementing e-Invoice from 1 July 2026 under the previous threshold.
Following the increase in the e-Invoice exemption threshold to RM3 million, these businesses should reassess whether they now meet the latest exemption criteria.
If you have confirmed that your business:
has annual turnover / revenue below RM3 million; and
meets the applicable e-Invoice exemption criteria,
then you may:
✅ Discontinue issuing e-Invoices immediately
✅ No separate application to LHDN / IRBM is required
✅ No prior approval from LHDN / IRBM is required
✅ Alternatively, continue issuing e-Invoices voluntarily
❌ If the exemption criteria are not met, you must continue implementing e-Invoice
Example:
A company had annual revenue of RM2 million and started issuing e-Invoices from 1 July 2026.
If the company now falls within the RM3 million exemption threshold and satisfies all the relevant exemption conditions, it may stop issuing e-Invoices immediately without making a separate application to LHDN.
Alternatively, the company may continue using e-Invoice voluntarily.
Important: Being below RM3 million alone does not automatically qualify a taxpayer for exemption. The relevant exemption conditions, including the taxpayer’s corporate and related-company structure, should also be reviewed.