AdrianYeo Tax KL - The Business Ledger , e-Invoice

E-Invoice Phase 4: 12-Month Transition Extension & New Flexibility for Businesses (2026)

Tue, 06 Jan 2026 12:56:08 +0000

On 5 January 2026, Lembaga Hasil Dalam Negeri Malaysia (HASiL) announced important updates to the implementation of E-Invoice Phase 4, providing much-needed flexibility and additional preparation time for businesses—especially Micro, Small and Medium Enterprises (MSMEs). See LHDN's guideline here.

These updates aim to ensure a smoother and more practical adoption of e-invoicing across Malaysia.

12-Month Transition Period for E-Invoice Phase 4

Originally set at 6 months, the transition period for E-Invoice Phase 4, which commenced on 1 January 2026, has now been extended to 12 months, ending on 31 December 2026.

This extension allows businesses more time to:

Adjust internal accounting and invoicing processes
Configure systems to meet e-invoicing requirements
Ensure compliance without disrupting daily operations

Consolidated E-Invoice Allowed During Transition

Throughout the transition period, HASiL allows businesses to adopt a more flexible approach to e-invoicing:

Consolidated e-invoices may be issued for all activities and transactions
Consolidated self-billed e-invoices are permitted where applicable
Businesses may use flexible transaction descriptions in the “Product or Service Description” field
Consolidated e-invoices are allowed even when buyers request an e-invoice

Importantly, no penalties will be imposed for non-compliance during the transition period, provided these conditions are met.

Special Relief for Construction Materials Businesses

Additional relief has been granted to businesses involved in the wholesale and retail of construction materials.

Effective 1 January 2026:

Businesses may issue consolidated e-invoices
E-Invoice is only required when:
- A transaction exceeds RM10,000, or
- A buyer specifically requests an e-invoice

This measure helps reduce administrative burden, particularly for businesses handling high volumes of small-value transactions.

What Businesses Should Do Next

While penalties are waived during the transition period, businesses are strongly encouraged to:

Begin planning and system preparation early
Review current invoicing workflows
Seek professional guidance to ensure full compliance by 2027

Early preparation will help avoid last-minute challenges once the transition period ends.

How we can help?

At AdrianYeo Tax KL, we provide end-to-end support for:

E-Invoice implementation and compliance
Accounting and tax advisory
Payroll subscription services

Our team is ready to help you navigate the E-Invoice requirements with clarity and confidence.

Schedule a discussion

Important Update: Malaysia e-Invoice Threshold Has Changed — Is Your Business Ready?

Tue, 16 Dec 2025 01:57:02 +0000

We have an important announcement from LHDN regarding the e-Invoice rollout in Malaysia that could affect your business compliance planning.

LHDN has updated the mandatory e-Invoice implementation threshold, now organised into phases based on your annual turnover — giving businesses more clarity and time to prepare. This digital initiative is part of Malaysia’s tax digitalisation efforts and will become compulsory based on your revenue bracket.

Updated e-Invoice Implementation Threshold

Here’s how the new threshold works:

Annual Turnover	Mandatory From
> RM100 million	1 August 2024
RM25 million – RM100 million	1 January 2025
RM5 million – RM25 million	1 July 2025
RM1 million – RM5 million	1 January 2026
≥ RM1 million (for companies that commenced business from 2023 onward)	1 July 2026

** The deadlines above apply when your annual turnover/revenue is more or at RM1 million based on your YA2022 financials or earliest available year of assessment.

Official Guidelines & More Info

For details on compliance steps, technical specifications, and FAQs, you can view the official LHDN e-Invoice guideline here:

Download Guideline

Everything you need know about e-invoice

Thu, 09 Oct 2025 06:24:00 +0000

Overview of e-invoice

e-Invoice, or electronic invoice, is a digital version of a traditional paper invoice that allows businesses to issue, receive, and store invoices electronically in a structured format. Implemented by LHDN (Inland Revenue Board of Malaysia), the e-Invoice system aims to enhance tax transparency, reduce fraud, and simplify compliance through real-time data submission and verification.

By adopting e-Invoice, businesses can streamline billing processes, minimize errors, and improve efficiency — ensuring smoother operations and easier compliance with Malaysia’s evolving tax landscape.

Overview of the e-Invoice Model

An e-Invoice is a digital representation of a transaction between a supplier and a buyer. e-Invoice replaces paper or electronic documents such as invoices, credit notes, and debit notes.

An e-Invoice contains the same essential information as traditional document, for example, supplier’s and buyer’s details, item description, quantity, price excluding tax, tax, and total amount, which records transaction data for daily business operations.

To support a smooth transition to e-Invoicing, taxpayers can choose the transmission method that best aligns with their business needs and operational setup.

There are two available mechanisms for submitting e-Invoices to the Inland Revenue Board of Malaysia (IRBM):

1. MyInvois Portal

A web-based platform provided and hosted by IRBM.
Free and accessible to all taxpayers.
Designed for businesses without an existing system integration or API connection.
Enables taxpayers to manually issue and manage e-Invoices easily.

2. Application Programming Interface (API)

A set of programming codes that allows direct, automated data exchange between a taxpayer’s internal system and the MyInvois system.
Requires initial investment in technology and system adjustments.
Best suited for large organizations or businesses managing high transaction volumes.

The diagram below illustrates the overall e-Invoice workflow — from the point of sale or transaction, where an e-Invoice is generated through either the MyInvois Portal or API, to its validation and secure storage within IRBM’s database, where taxpayers can later access their historical e-Invoices.

Download e-Invoice Guidelines

e-Invoice Implementation Timeline

e-Invoice will be implemented in phases to ensure smooth transition. The roll-out of e-Invoice has been planned with careful consideration, taking into account the turnover or revenue thresholds, to provide taxpayers with sufficient time to prepare and adapt to the e-Invoice implementation.

Below is the e-Invoice implementation timeline:

Targeted Taxpayers	Implementation Date
Taxpayers with an annual turnover or revenue of more than RM100 million	1 August 2024
Taxpayers with an annual turnover or revenue of more than RM25 million and up to RM100 million	1 January 2025
Taxpayers with an annual turnover or revenue of more than RM5 million and up to RM25 million	1 July 2025
Taxpayers with an annual turnover or revenue of more than RM1 million and up to RM5 million	1 January 2026
Taxpayers with an annual turnover or revenue of up to RM1 million	1 July 2026

**Note: e-Invoice implementation timeline been updated on 5 June 2025

About MyInvois Portal

The MyInvois Portal is an e-invoicing solution provided by IRBM at no charge. This platform is designed to facilitate the implementation of e-Invoice for all taxpayers especially for those who are not using the business ERP system to issue e-Invois. Accessible via computers, laptops, and smartphones, the portal enables users to manage e-Invoice efficiently from anywhere, at any time.

MyInvois Portal provides key features as follows:

Profile Management for User, Taxpayers, Representative, ERP System and Intermediary; and
Document Management includes Submit, View, Reject, Cancel and Print Document.

Taxpayers can access the MyInvois Portal via the MyTax Portal, the gateway of HASiL e-Services. To facilitate the use of the MyInvois Portal, HASiL provides two (2) environments that can be accessed by taxpayers as follows:

[Note: Taxpayers must ensure to use the correct environment for e-Invoice submission to HASiL]

Video Guides

User Environment	Description	Link	User Manual
Testing (Sandbox)	Allow taxpayers to try the functions provided in the portal before using the actual (production) environment. Information sent to the testing environment will not be stored in the HASiL database and will not be migrated to the production environment.	https://preprod-mytax.hasil.gov.my	First time login user guide to MyTax Portal (Testing Environment) – Company Director and Company Representative Visit https://preprod-mytax.hasil.gov.my and click User Manual: With PIN activation email Without PIN activation email [Note: The Company Representative must complete the first time login to the MyTax Portal (Testing Environment) before can be appointed as a 'Company Representative' by the Director] MyInvois Portal user guide Visit https://preprod-mytax.hasil.gov.my and click MyInvois Portal User Guide
Production (Actual)	Enables taxpayers to submit e-Invoices with real information and use other related functions	https://mytax.hasil.gov.my	First time login user guide to MyTax Portal Visit https://mytax.hasil.gov.my and click User Manual User Manual (Web) – For login to MyTax Portal Role Application User Manual – For the application of 'Company Director' role and the appointment of 'Company Representative' role by the Director MyInvois Portal user guide Visit https://mytax.hasil.gov.my and click MyInvois Portal User Guide

Still not sure where to start with e-invoicing?

Let our experts simplify it for you. We’ll help you understand the requirements, plan your rollout, and implement the right solution — tailored to your business.

Talk to our e-invoice experts