Taxpayers with annual turnover up to RM5 million have until December 31, 2026 to issue consolidated e-invoices without penalties per e-Invoice Specific Guideline v4.6 .
Micro Business Exemption
Businesses with annual revenue below RM1,000,000 are exempt from mandatory e-invoicing requirements per the e-Invoice Implementation Timeline (updated December 7, 2025).
Standards:
UBL 2.1 format (XML or JSON)
55 mandatory data fields
Supported Formats:
UBL 2.1 XML/JSON with digital signatures using IRBM Digital Certificate
Clearance Model:
Continuous Transaction Control (CTC) via MyInvois system with real-time validation; QR code generation for validated invoices
Archiving Requirements:
7 years retention per Income Tax Act 1967 Section 82; MyInvois portal retains only 2 years - businesses must maintain own archives; XML/JSON format with digital signatures required.
N/A
No SAF-T implementation; Malaysia uses MyInvois real-time validation system with continuous transaction control model
Phase 3: Medium taxpayers (RM5-25M)
1 July 2025
Medium businesses
Expansion to businesses with annual turnover RM5-25 million.
Exemption threshold raised to RM1 million; Phase 5 cancelled
7 December 2025
National
PM announced e-invoicing exemption threshold raised from RM500,000 to RM1,000,000. Previously planned Phase 5 (July 2026) for micro taxpayers cancelled. Confirmed on e-Invoice Implementation Timeline .
Phase 4: All taxpayers (>RM1M) + Individual invoice requirements
1 January 2026
Small businesses
Expansion to all businesses with annual turnover exceeding RM1,000,000; individual e-invoices mandatory for transactions >RM10,000.