An e-Invoice is a digital record of a transaction between a supplier and a buyer. In Malaysia it replaces paper or electronic invoices, credit notes and debit notes. It is a structured file in the format LHDN sets, not a PDF, and LHDN validates it in near real time, generally in less than two seconds. Below: the dates by turnover, who is exempt, how e-Invoices reach LHDN, and what your finance team needs to be able to do.
What an e-Invoice is, and what it is not
The test is the file, not the look of it. An e-Invoice is created in XML or JSON, the formats LHDN specifies. A PDF or a JPG emailed to a customer is not an e-Invoice, however official it looks.
There are four types, and each one has a name your team already knows: Invoice, Credit Note, Debit Note and Refund Note. There is also a self-billed e-Invoice, used to document an expense. It is explained in the questions at the end.
e-Invoice implementation timeline in Malaysia
Your date depends on your annual turnover or revenue. Each group also has an interim relaxation period after its start date.
| Annual turnover or revenue | Implementation date | Interim relaxation period |
|---|---|---|
| More than RM100 million | 1 August 2024 | 1 August 2024 to 31 January 2025 |
| More than RM25 million, up to RM100 million | 1 January 2025 | 1 January to 30 June 2025 |
| More than RM5 million, up to RM25 million | 1 July 2025 | 1 July to 31 December 2025 |
| Up to RM5 million | 1 January 2026 | Until 31 December 2027 |
| Less than RM3 million | Exempt (see below) | Not applicable |
Turnover is taken from your audited financial statements for financial year 2022, or from your YA2022 tax return if there are no audited accounts. A later change in turnover does not change your date.
Last checked against LHDN: 20 October 2026. Source: LHDN e-Invoice implementation timeline.
Who must issue e-Invoices, and who is exempt
e-Invoice applies to all persons in Malaysia. The exemption is the part several guides have not caught up with. From 1 September 2026, the government raised the exemption threshold from RM1 million to RM3 million, and businesses below it are not required to issue e-Invoices. Voluntary participation is still encouraged.
The condition sits in the same rule. The exemption does not apply if you have a non-individual shareholder, parent company, related company or joint venture with turnover of RM3 million or more.
New businesses follow their own dates. If you started operating between 2023 and 2025 with turnover of RM3 million or more, your date is 1 July 2026. If you start in 2026, it is 1 July 2026 or your start date. If your first year will stay below RM3 million, you begin on 1 January of the second year after you reach it.
Some persons are exempt outright, such as foreign diplomatic offices and individuals who are not doing business. Some income needs no e-Invoice at all. Salary and pension are two examples; alimony and zakat are others, as are certain dividends and securities transactions.
How it works: MyInvois Portal or API
There are two ways to send an e-Invoice to LHDN. The MyInvois Portal is hosted by LHDN and open to every taxpayer at no cost. The API connects your own system directly; it needs upfront investment in technology and suits large taxpayers. You can use both, as long as nothing is submitted twice.
You reach the portal through MyTax. The sandbox, for testing, and the production environment are activated separately, and there is a MyInvois mobile app. To act for the company, someone needs a role in MyTax: Business Owner for a sole proprietor, or Company Director or Organisation Administrator for everyone else. That person appoints and revokes representatives.
Once an e-Invoice is validated, the buyer can request a rejection and the supplier can cancel it within 72 hours. After that window, any correction goes through a credit note, debit note or refund note.
Where to find the official e-Invoice guideline
LHDN currently publishes two: the e-Invoice Guideline v4.8, published on 30 August 2026, and the e-Invoice Specific Guideline v4.9, published on 7 September 2026. Both are on LHDN’s guideline page. If someone in your team saved a copy months ago, check the version number before relying on it.
Relaxation period and the voluntary disclosure programme
The interim relaxation period is the window after each start date shown in the table above. What is allowed during it is set out in LHDN’s General FAQs; read it there rather than in a summary.
Separately, LHDN runs a voluntary disclosure programme for e-Invoice, Program Khas Pengakuan Sukarela e-Invois, until 31 December 2027. If you did not issue an e-Invoice, or issued one that was incomplete or wrong, you can correct it without a penalty.
What your finance team needs to be able to do
Without the software, e-Invoice is a set of jobs for named people. Someone holds the company role in MyTax and decides who else gets access. Someone knows which document a transaction needs and catches a wrong e-Invoice while it can still be rejected or cancelled. And someone knows when the company issues a self-billed e-Invoice instead of waiting for one. The gap shows the day a buyer asks for a rejection and nobody knows who holds the login.
HRD Corp has used the e-Invoice system since 1 January 2025, and registered employers are among those it names as affected. If your system vendor has already shown your people how to do these jobs, you may not need anything more. If not, AZEO runs in-house e-Invoice implementation training, claimable under HRD Corp.
Frequently asked questions
Does e-Invoice apply to sales to consumers?
Yes. LHDN’s guideline says e-Invoice covers typical transaction types such as B2B, B2C and B2G: sales to businesses, to consumers and to government.
Is e-Invoice required for cross-border transactions?
Yes. LHDN states that issuing an e-Invoice is not limited to transactions within Malaysia. It also applies to cross-border transactions.
What is a self-billed e-Invoice?
It is an e-Invoice your business issues to document an expense, instead of receiving one from the supplier. The usual example is a purchase from a foreign supplier that does not use MyInvois.
What is the penalty for not issuing an e-Invoice?
According to LHDN’s General FAQs, failure to issue an e-Invoice is an offence under Section 120(1)(d) of the Income Tax Act 1967. For each non-compliance, it will result in a fine of not less than RM200 and not more than RM20,000, or imprisonment not exceeding 6 months, or both. The voluntary disclosure programme described above lets you correct past gaps without a penalty.
Do invoices issued before our implementation date need converting?
No. Invoices issued before your implementation date do not need to be converted into e-Invoices. Tax deductions can still be claimed with your existing documents until the legislation is amended.
Dates and thresholds on this page come from LHDN and they do change, so check the official timeline before you plan around them. If you are not sure who in your company should own which job, talk to our team.