Guides · e-Invoice
e-Invoice (MyInvois) deadlines for Malaysian small businesses
The LHDN MyInvois e-Invoice rollout in plain terms: the phased turnover deadlines, who is exempt, the RM10,000 rule, and how a small business gets ready, without a subscription.
What is e-Invoice / MyInvois?
e-Invoice is Malaysia's move to electronic, validated invoices, run by LHDN (the Inland Revenue Board) through its MyInvois system. Instead of just printing an invoice, a business submits it to MyInvois, which validates it and returns a unique identifier and a QR code.
It is separate from SST. SST (administered by RMCD) decides whether and how much tax you charge; e-Invoice decides how the invoice itself is issued and validated. Many businesses deal with both.
The rollout is phased by turnover
LHDN is mandating e-Invoice in phases, based on your annual turnover for the financial year 2022. Bigger businesses went first; smaller ones follow. The table below is the published schedule.
Each phase also had a six-month relaxation period after its start date, during which businesses had to use e-Invoice but could issue consolidated e-invoices and follow relaxed rules without Section 120 penalties. Those windows for the earlier phases have now closed.
| FY2022 annual turnover | Mandatory from | Phase |
|---|---|---|
| More than RM100 million | 1 August 2024 | Phase 1 · largest companies |
| RM25 million – RM100 million | 1 January 2025 | Phase 2 |
| RM5 million – RM25 million | 1 July 2025 | Phase 3 |
| RM1 million – RM5 million | 1 January 2026 | Phase 4 · most SMEs |
| Below RM1 million | Exempt | Fully exempt from 1 January 2026 |
Are small businesses exempt?
As announced by the Prime Minister on 7 December 2025, the exemption threshold was raised to RM1 million: businesses with annual turnover below RM1,000,000 are fully exempt from e-Invoice, effective 1 January 2026 (up from the earlier RM500,000 line).
Exemption is not always automatic and LHDN's MSME criteria apply, so if you are near the threshold, confirm your position on the official MyInvois portal or with a licensed tax agent. If your turnover later crosses RM1 million, you come into scope.
The RM10,000 rule you should know
From 1 January 2026, for businesses in scope, an individual e-invoice is mandatory for any transaction above RM10,000. You can no longer roll those larger sales into a monthly consolidated e-invoice. Each one is issued and validated on its own.
Below that amount, and depending on your phase and buyer, consolidated e-invoices may still be allowed. Check the current MyInvois guidelines for your situation.
How a small business gets ready
First, find your phase: check your FY2022 turnover against the table, and whether you are under the RM1 million exemption. Then make sure your invoicing can produce the required fields and, when it applies to you, submit to MyInvois.
You do not need an expensive system to be ready. What matters is clean records, correct customer and tax details on every invoice, and software built to be MyInvois e-Invoice ready. Orbit Finance is built for exactly this: a one-time licence, your data on your device, and e-Invoice readiness without a monthly bill.
Official sources
- LHDN · e-Invoice implementation timeline · the official table of turnover bands and dates
- Portal MyInvois (LHDN) · check your own status and phase
- LHDN · e-Invoice Guideline (PDF)
Checked against the official sources on 28 July 2026. Tax rules change, so confirm your own position on the official portal or with a tax agent.
Questions, answered
When do small businesses have to start e-Invoice in Malaysia?+
Businesses with FY2022 turnover of RM1 million to RM5 million came into scope on 1 January 2026 (Phase 4). Businesses with turnover below RM1 million are fully exempt from 1 January 2026. Always confirm your own position on the MyInvois portal.
Is my business exempt from e-Invoice?+
If your annual turnover is below RM1,000,000 you are currently exempt, effective 1 January 2026 (raised from RM500,000). Exemption is subject to LHDN's MSME criteria, so verify on the official MyInvois portal or with a tax agent.
What is the RM10,000 e-Invoice rule?+
From 1 January 2026, businesses in scope must issue an individual (not consolidated) e-invoice for any transaction above RM10,000. Consolidated e-invoices are not allowed for those amounts.
Is e-Invoice the same as SST?+
No. e-Invoice / MyInvois is run by LHDN and is about how invoices are issued and validated electronically. SST is a separate tax administered by RMCD. You may deal with both.
Does Orbit Finance support MyInvois e-Invoice?+
Yes. Orbit Finance is built to be MyInvois e-Invoice ready, with the customer and tax details each invoice needs. Always confirm against your current LHDN filing phase.
Stay e-Invoice ready without a subscription
Orbit Finance is built to be MyInvois e-Invoice ready. One-time RM 249.00, your data on your device.