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Malaysia e-Invoicing

Updated 6 August 2026

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  • Key facts
  • Timeline
  • Tax & Compliance
  • Formats
  • Penalties
  • Exemptions
  • FAQ

Malaysia validates invoices in near real time through MyInvois, the platform run by the Inland Revenue Board (HASiL). The mandate arrived in four turnover-based phases between August 2024 and January 2026, and taxpayers below RM1,000,000 stay exempt. Fourth-phase businesses keep a penalty-free relaxation until 31 December 2027.

Malaysia e-Invoicing Overview

B2B
phased
since 1 August 2024
Turnover-based rollout set out in Table 1.1 of the e-Invoice Guideline : above RM100 million from 1 August 2024, above RM25 million and up to RM100 million from 1 January 2025, above RM5 million and up to RM25 million from 1 July 2025, and up to RM5 million from 1 January 2026. Scope is fixed on financial year 2022 turnover, so later growth does not move a taxpayer's date. Businesses that started operations between 2023 and 2025 with turnover of at least RM1,000,000 came into scope on 1 July 2026.
B2G
phased
since 1 August 2024
Malaysia runs no separate public-sector regime: suppliers to government bodies submit through MyInvois on the same turnover-based dates as every other taxpayer. Statutory bodies, statutory authorities and local authorities are themselves exempt when collecting payments, fees, charges, statutory levies, summonses, compounds and penalties under written law, and were exempt for goods and services supplied before 1 July 2025.
B2C
phased
since 1 August 2024
Suppliers in scope either issue an e-invoice to each buyer or aggregate a month of receipts into a consolidated e-invoice, which section 3.6.2 of the e-Invoice Specific Guideline requires within seven calendar days after month end. Since 1 January 2026 any single transaction above RM10,000 must carry its own e-invoice, joining the sale of motor vehicles, flight tickets and private charters, construction contracts, betting and gaming pay-outs, payments to agents, dealers and distributors, electricity supply and postpaid telecommunications in Table 3.6.

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Read the full Malaysia e-invoicing guide

Implementation Timeline(14 events)

Key mandate dates. Select a date for detail, or show all updates below.

Phase 1: turnover above RM100 million
1 August 2024
Large businesses
Taxpayers with annual turnover or revenue above RM100 million became the first group required to issue validated e-invoices, per Table 1.1 of the e-Invoice Guideline . A six-month interim relaxation ran alongside it to 31 January 2025.
Income Tax (Issuance of Electronic Invoice) Rules 2024 take effect
1 October 2024
Legal framework
The Income Tax (Issuance of Electronic Invoice) Rules 2024 [P.U. (A) 265] were gazetted with effect from 1 October 2024, giving the Minister's prescription of who must issue an e-invoice and what it must contain. HASiL confirms in its e-Invoice general FAQs that this date governs when penalties may be imposed on the first phase, not the 1 August 2024 implementation date.
Phase 2: turnover above RM25 million and up to RM100 million
1 January 2025
Medium-large businesses
The second phase brought taxpayers above RM25 million and up to RM100 million into scope, with an interim relaxation to 30 June 2025.
Phase 3: turnover above RM5 million and up to RM25 million
1 July 2025
Medium businesses
The third phase covered taxpayers above RM5 million and up to RM25 million, with an interim relaxation to 31 December 2025. Statutory bodies, statutory authorities, local authorities and listed international organisations also lost their transitional exemption for goods and services supplied from this date.
Currency exchange rate element enforced in production
1 September 2025
Technical compliance
Submissions with an invoice currency other than MYR are rejected unless they carry the currency exchange rate element, a rule the MyInvois SDK release notes applied in the sandbox from 9 August 2025 and in production from 1 September 2025.
Exemption threshold raised to RM1 million and the fifth phase dropped
7 December 2025
National
HASiL issued e-Invoice Guideline version 4.6 and updated its e-Invoice implementation timeline . Taxpayers with annual turnover or revenue below RM1,000,000 are now exempt, up from RM500,000 in version 4.5, and the separate fifth phase that version 4.5 had set for 1 July 2026 no longer appears: the schedule ends with a fourth phase covering turnover up to RM5 million.
Phase 4: turnover up to RM5 million, plus the RM10,000 transaction rule
1 January 2026
Small businesses
The final phase reached taxpayers with turnover up to RM5 million. On the same date, Table 3.6 of the e-Invoice Specific Guideline began barring consolidated e-invoices for any single transaction above RM10,000 across all industries, and added electricity supply and postpaid telecommunications, internet subscriptions and sales of electronic devices.
e-Invoice Specific Guideline version 4.6 published
5 January 2026
Technical compliance
Version 4.6 of the e-Invoice Specific Guideline replaced version 4.5 of 7 December 2025. Wholesalers and retailers of construction materials no longer sit in Table 3.6, so they may consolidate unless a buyer asks for an individual e-invoice.
Fourth-phase interim relaxation extended to 31 December 2027
20 April 2026
Small businesses
Version 4.7 of the e-Invoice Specific Guideline extended the interim relaxation for taxpayers with turnover up to RM5 million, covering both the 1 January 2026 and 1 July 2026 implementation dates, through to 31 December 2027. Table 16.1 still carries that end date. The implementation dates themselves did not move.
State code 17 restricted and scientific notation rejected
30 April 2026
Technical compliance
The MyInvois SDK release notes limited state code 17 to consolidated e-invoices issued in Malaysia and to transactions outside Malaysia, effective immediately, and ruled out scientific notation in every amount field.
TIN and BRN validation from 1 August 2026
12 June 2026
Technical compliance
HASiL announced through the MyInvois SDK release notes that the Validate Taxpayer's TIN API would check the tax identification number against the business registration number from 1 August 2026, and advised suppliers to collect updated BRN details from their buyers.
Newly incorporated businesses join the mandate
1 July 2026
New businesses
Section 1.5 of the e-Invoice Guideline sets 1 July 2026 as the implementation date for businesses that commenced operations between 2023 and 2025 with annual turnover of at least RM1,000,000, and for businesses commencing from 2026 onwards. Where a first-year turnover falls short of RM1,000,000, the date becomes 1 January of the second year after the year that threshold is reached.
Special Voluntary Disclosure Programme opens with guidelines 4.7 and 4.8
7 July 2026
National
HASiL published e-Invoice Guideline version 4.7 and e-Invoice Specific Guideline version 4.8 on its guidelines page and opened an e-Invoice Special Voluntary Disclosure Programme running to 31 December 2027. Section 17 of the Specific Guideline waives compliance reviews, penalties and prosecution for e-invoices disclosed under the programme, except where a submission still breaches the specifications or the disclosure involves fraud, wilful default or negligence.
Field format validation enforced in production
15 August 2026
Technical compliance
Ten field rules that had run in the sandbox since 15 December 2025 moved into production, per the MyInvois SDK release notes . Date fields must use YYYY-MM-DD, so entries such as "N/A" fail, and length caps now apply to the supplier bank account number, e-invoice number, certified exporter authorisation number, Incoterms, billing frequency, unit of measurement, supplier business activity description, payment terms and prepayment reference number.

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Compliance Regime

CTC Model
Real-time reporting
Continuous transaction control. Suppliers submit each document to MyInvois through the free portal, batch upload or the API; HASiL validates it in near real time, generally in under two seconds, and returns a unique identifier and QR code that the supplier embeds in the visual representation shared with the buyer. Rejection and cancellation are only possible within 72 hours of validation. HASiL also provides MyInvois e-POS , a point-of-sale application offered free of charge to micro, small and medium enterprises.
Network
Real-time reporting
Standards
UBL 2.1 (XML or JSON), 55 required fields under Appendix 1 of the e-Invoice Guideline, XAdES digital signature (RSA, SHA-256)

Record-keeping & Reporting

Archiving
HASiL keeps every validated e-invoice in its own database, and the e-Invoice Guideline still requires taxpayers to retain sufficient records of the underlying transaction. Section 82 of the Income Tax Act 1967 sets that retention period at seven years.
SAF-T
N/A
No SAF-T obligation. Transaction data reaches HASiL through MyInvois validation rather than a periodic accounting-file submission.

Technical Formats

UBL 2.1 XML
UBL 2.1 JSON

Penalties

Failure to Issue an e-Invoice
Failure to issue an e-invoice is an offence under section 120(1)(d) of the Income Tax Act 1967, drawing a fine of not less than RM200 and not more than RM20,000, imprisonment of up to six months, or both, for each instance of non-compliance, as HASiL states in its e-Invoice general FAQs .

Exemptions

Turnover Threshold
Taxpayers with an annual turnover or revenue of less than RM1,000,000 are exempt from issuing e-invoices, including self-billed e-invoices, under section 1.6.1(e) of the e-Invoice Guideline . Entities owned by an exempt person remain in scope on their own turnover.
Interim Relaxation Period
Taxpayers in the fourth phase may issue consolidated e-invoices and consolidated self-billed e-invoices for all activities until 31 December 2027, may write free text in the product or service description, and may decline a buyer's request for an individual e-invoice. HASiL will not bring prosecution under section 120 of the Income Tax Act 1967 during that period, per Table 16.1 and section 16.3 of the e-Invoice Specific Guideline . The protection lapses on 1 January 2028.
Exempt Persons
Foreign diplomatic offices, individuals not conducting a business, and statutory bodies, statutory authorities and local authorities collecting statutory payments do not issue e-invoices under section 1.6.1 of the e-Invoice Guideline . Suppliers to those persons must still issue one, and for diplomatic offices may substitute the buyer details set out in the Specific Guideline.
Income Outside Scope
Section 1.6.7 of the e-Invoice Guideline requires no e-invoice for employment income, pensions, alimony, zakat, dividend distributions in specified circumstances, contract values for exchange-traded securities and derivatives, most disposals of unlisted shares, and donations or contributions.

Cross-border Conditions

Imports of Goods
A Malaysian buyer records a purchase from a foreign seller by issuing a self-billed e-invoice, due by the end of the second month following the month customs clearance is obtained, under section 10.4.8 of the e-Invoice Specific Guideline . The validated document is the proof of expense.
Imports of Services
For imported services the self-billed e-invoice falls due by the end of the month following payment or receipt of the foreign supplier's invoice, whichever comes first, per section 10.4.9 of the e-Invoice Specific Guideline . Where service tax on imported taxable services applies, that amount goes into the same document.
Exports
A Malaysian seller supplying a foreign buyer issues an ordinary e-invoice to HASiL for validation and shares the validated document with the buyer, under section 10.5 of the e-Invoice Specific Guideline .

Read our full Malaysia e-invoicing compliance guide

In-depth mandate analysis, timeline, exemptions, and vendor selection

Official Sources

  • HASiLLembaga Hasil Dalam Negeri MalaysiaTax authority
  • MyInvoisPortal MyInvoisMandate portal
  • MOFKementerian Kewangan MalaysiaMinistry
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Related Countries

  • BangladeshPhased
  • IsraelPhased
  • NepalPhased
  • OmanPhased

Frequently asked questions about e-Invoicing in Malaysia

Malaysia is currently implementing e-Invoicing in a phased rollout. B2B is in a phased rollout and B2G is in a phased rollout.

B2B e-Invoicing in Malaysia is in a phased rollout since 2024-08-01. Turnover-based rollout set out in Table 1.1 of the e-Invoice Guideline : above RM100 million from 1 August 2024, above RM25 million and up to RM100 million from 1 January 2025, above RM5 million and up to RM25 million from 1 July 2025, and up to RM5 million from 1 January 2026. Scope is fixed on financial year 2022 turnover, so later growth does not move a taxpayer's date. Businesses that started operations between 2023 and 2025 with turnover of at least RM1,000,000 came into scope on 1 July 2026.

B2G e-Invoicing in Malaysia is in a phased rollout since 2024-08-01. Malaysia runs no separate public-sector regime: suppliers to government bodies submit through MyInvois on the same turnover-based dates as every other taxpayer. Statutory bodies, statutory authorities and local authorities are themselves exempt when collecting payments, fees, charges, statutory levies, summonses, compounds and penalties under written law, and were exempt for goods and services supplied before 1 July 2025.

Malaysia supports the following e-Invoice formats: UBL 2.1 XML, UBL 2.1 JSON.

Malaysia uses the following e-Invoicing standards: UBL 2.1 (XML or JSON), 55 required fields under Appendix 1 of the e-Invoice Guideline, XAdES digital signature (RSA, SHA-256). Archiving requirement: HASiL keeps every validated e-invoice in its own database, and the e-Invoice Guideline still requires taxpayers to retain sufficient records of the underlying transaction. Section 82 of the Income Tax Act 1967 sets that retention period at seven years..

Continuous transaction control. Suppliers submit each document to MyInvois through the free portal, batch upload or the API; HASiL validates it in near real time, generally in under two seconds, and returns a unique identifier and QR code that the supplier embeds in the visual representation shared with the buyer. Rejection and cancellation are only possible within 72 hours of validation. HASiL also provides MyInvois e-POS , a point-of-sale application offered free of charge to micro, small and medium enterprises.

Malaysia has penalties for e-Invoicing non-compliance. Failure to Issue an e-Invoice: Failure to issue an e-invoice is an offence under section 120(1)(d) of the Income Tax Act 1967, drawing a fine of not less than RM200 and not more than RM20,000, imprisonment of up to six months, or both, for each instance of non-compliance, as HASiL states in its e-Invoice general FAQs .

Cross-border e-Invoicing in Malaysia: A Malaysian buyer records a purchase from a foreign seller by issuing a self-billed e-invoice, due by the end of the second month following the month customs clearance is obtained, under section 10.4.8 of the e-Invoice Specific Guideline . The validated document is the proof of expense. For imported services the self-billed e-invoice falls due by the end of the month following payment or receipt of the foreign supplier's invoice, whichever comes first, per section 10.4.9 of the e-Invoice Specific Guideline . Where service tax on imported taxable services applies, that amount goes into the same document.

B2C e-Invoicing in Malaysia is in a phased rollout since 2024-08-01. Suppliers in scope either issue an e-invoice to each buyer or aggregate a month of receipts into a consolidated e-invoice, which section 3.6.2 of the e-Invoice Specific Guideline requires within seven calendar days after month end. Since 1 January 2026 any single transaction above RM10,000 must carry its own e-invoice, joining the sale of motor vehicles, flight tickets and private charters, construction contracts, betting and gaming pay-outs, payments to agents, dealers and distributors, electricity supply and postpaid telecommunications in Table 3.6.

Exemptions from Malaysia e-Invoicing may apply to: Turnover Threshold, Interim Relaxation Period, Exempt Persons. Check specific criteria as exemptions vary by transaction type and business size.
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