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Malaysia e-Invoicing

Last reviewed 22 September 2026

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

Malaysia validates invoices in near real time through MyInvois, run by the Inland Revenue Board (HASiL). Four turnover-based phases ran between August 2024 and January 2026, and those below RM3,000,000 are exempt from 1 September 2026. Fourth-phase businesses keep a penalty-free relaxation until 31 December 2027.

Previous
1 July 2026
Newly incorporated businesses join the mandate
Latest
30 August 2026
Exemption threshold raised from RM1 million to RM3 million
Next
31 December 2027
Fourth-phase interim relaxation ends

Malaysia e-Invoicing Overview

All segments
Format
UBL 2.1 (XML or JSON)
Channel
MyInvois Portal, batch upload or API
Legal basis
Income Tax (Issuance of Electronic Invoice) Rules 2024 [P.U. (A) 265]
B2B
phased
since 1 August 2024
Applies from
Issue: 1 August 2024 · All: 1 July 2026
1 August 2024IssuePhase 1 · Annual turnover above RM100 million
1 January 2025IssuePhase 2 · Above RM25 million and up to RM100 million
1 July 2025IssuePhase 3 · Above RM5 million and up to RM25 million
1 January 2026IssuePhase 4 · Up to RM5 million
+1 more phase
Scope
Taxpayers above the exemption threshold, phased by financial year 2022 turnover
Exempt
Taxpayers with annual turnover or revenue below RM3,000,000
More detail
Table 1.1 of the e-Invoice Guideline fixes each phase on financial year 2022 turnover, whatever the later growth. A new business expecting under RM3,000,000 in its first year joins on 1 January of the second year after reaching it.
B2G
phased
since 1 August 2024
Applies from
  • Issue: 1 August 2024
  • All: 1 July 2026
Scope
Suppliers to government bodies, on the same turnover-based dates as every other taxpayer
Exempt
Statutory bodies, statutory authorities and local authorities when collecting statutory payments
More detail
Malaysia runs no separate public-sector regime: suppliers to government bodies submit through MyInvois like every other taxpayer. Statutory bodies, statutory authorities and local authorities lost their own exemption for goods and services supplied from 1 July 2025.
B2C
phased
since 1 August 2024
Applies from
  • Issue: 1 August 2024
  • All: 1 July 2026
Scope
Sales to consumers, by individual e-invoice or monthly consolidated e-invoice
More detail
Suppliers issue an e-invoice to each buyer or consolidate a month of receipts within seven calendar days after month end, under section 3.6.2 of the e-Invoice Specific Guideline . Since 1 January 2026 any transaction above RM10,000 needs its own e-invoice.

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Read the full Malaysia e-invoicing guide

Implementation Timeline(16 events)

Key deadlines: B2B, B2G and B2C Issue: 1 August 2024, All: 1 July 2026

Phase 1: turnover above RM100 million
1 August 2024
Domestic
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 to 31 January 2025.
Income Tax (Issuance of Electronic Invoice) Rules 2024 take effect
1 October 2024
Legislative
The Income Tax (Issuance of Electronic Invoice) Rules 2024 [P.U. (A) 265] were gazetted with effect from 1 October 2024. HASiL's e-Invoice general FAQs confirm that first-phase penalties run from this date, not from 1 August 2024.
Phase 2: turnover above RM25 million and up to RM100 million
1 January 2025
Domestic
The second phase brought taxpayers above RM25 million and up to RM100 million into scope under Table 1.1 of the e-Invoice Guideline , with an interim relaxation to 30 June 2025.
Phase 3: turnover above RM5 million and up to RM25 million
1 July 2025
Domestic
The third phase covered taxpayers above RM5 million and up to RM25 million under Table 1.1 of the e-Invoice Guideline , with an interim relaxation to 31 December 2025. Statutory bodies, local authorities and listed international organisations lost their transitional exemption.
Currency exchange rate element enforced in production
1 September 2025
Technical
Submissions in a 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
Domestic
e-Invoice Guideline version 4.6 and the updated e-Invoice implementation timeline raised the exemption threshold from RM500,000 to RM1,000,000 and dropped the fifth phase that version 4.5 had set for 1 July 2026.
Phase 4: turnover up to RM5 million, plus the RM10,000 transaction rule
1 January 2026
Domestic
The final phase reached taxpayers with turnover up to RM5 million. Table 3.6 of the e-Invoice Specific Guideline also began barring consolidated e-invoices for any single transaction above RM10,000 across all industries.
e-Invoice Specific Guideline version 4.6 published
5 January 2026
Technical
Version 4.6 of the e-Invoice Specific Guideline replaced version 4.5 of 7 December 2025. Wholesalers and retailers of construction materials left 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
Domestic
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, to 31 December 2027. Implementation dates did not move.
State code 17 restricted and scientific notation rejected
30 April 2026
Technical
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
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.
Newly incorporated businesses join the mandate
1 July 2026
Domestic
Section 1.5 of the e-Invoice Guideline sets 1 July 2026 for businesses that commenced operations between 2023 and 2025 with annual turnover of at least RM3,000,000, and for businesses commencing from 2026 onwards.
Special Voluntary Disclosure Programme opens with guidelines 4.7 and 4.8
7 July 2026
Domestic
HASiL published Guideline version 4.7 and Specific Guideline version 4.8 on its guidelines page and opened a Special Voluntary Disclosure Programme to 31 December 2027. Section 17 waives penalties and prosecution for disclosed e-invoices, barring fraud, wilful default or negligence.
Field format validation enforced in production
15 August 2026
Technical
Ten field rules 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 apply to nine other fields.
Exemption threshold raised to RM3 million
1 September 2026
Domestic
HASiL announced on 30 August 2026 that the e-invoice threshold rises from RM1 million to RM3 million with effect from 1 September 2026, so businesses with annual income or sales below RM3 million need not implement e-invoicing.
Fourth-phase interim relaxation ends
31 December 2027
Domestic
Table 16.1 of the e-Invoice Specific Guideline ends the interim relaxation for taxpayers with turnover up to RM5 million on 31 December 2027. Protection from prosecution under section 120 of the Income Tax Act 1967 lapses on 1 January 2028.

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Compliance Regime

Tax Authority
Lembaga Hasil Dalam Negeri Malaysia
CTC Model
Real-time reporting
Suppliers submit each document to MyInvois; HASiL validates it in near real time and returns a unique identifier and QR code.
More detail
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.
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
7 years retention
More detail
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
Not required
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
RM200 to RM20,000 per instance
More detail
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
Below RM3,000,000 annual turnover
More detail
Taxpayers with an annual turnover or revenue of less than RM3,000,000 are exempt from issuing e-invoices, including self-billed e-invoices, under section 1.6.1(e) of the e-Invoice Guideline , a figure raised from RM1,000,000 with effect from 1 September 2026. Section 1.6.10 applies the exemption to all categories of taxpayer but withholds it where a non-individual shareholder, holding company, related company or joint venture has turnover of at least RM3,000,000. Entities owned by an exempt person remain in scope on their own turnover.
Newly Exempt Taxpayers
Taxpayers below RM3,000,000 that were already in scope and meet the section 1.6.10 criteria may stop issuing e-invoices immediately, without applying to HASiL, and face no compliance action or penalty for e-invoices not issued since their implementation date, per questions 15 to 20 of the e-Invoice general FAQs .
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.
Consolidated e-Invoice Limits
Suppliers may aggregate a month of consumer receipts into one consolidated e-invoice, but Table 3.6 of the e-Invoice Specific Guideline requires an individual e-invoice for any single transaction above RM10,000 and for 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.

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 .
Latest Update
Timeline Update
30 Aug 2026

Exemption threshold raised from RM1 million to RM3 million

HASiL announced on 30 August 2026 that taxpayers with annual turnover or revenue below RM3 million are exempt from e-invoicing with effect from 1 September 2026, up from RM1 million. e-Invoice Guideline version 4.8, published the same day, applies the new figure to the exemption in section 1.6.1(e) and to new businesses in section 1.5.

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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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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 1 August 2024. The rollout runs in phases: 1 August 2024 (issue, phase 1); 1 January 2025 (issue, phase 2); 1 July 2025 (issue, phase 3); 1 January 2026 (issue, phase 4); 1 July 2026 (issue, businesses that started operations between 2023 and 2025). Scope: Taxpayers above the exemption threshold, phased by financial year 2022 turnover. Table 1.1 of the e-Invoice Guideline fixes each phase on financial year 2022 turnover, whatever the later growth. A new business expecting under RM3,000,000 in its first year joins on 1 January of the second year after reaching it.

B2G e-Invoicing in Malaysia is in a phased rollout since 1 August 2024. Issuing e-invoices applies from 1 August 2024; every in-scope business is covered from 1 July 2026. Scope: Suppliers to government bodies, on the same turnover-based dates as every other taxpayer. Malaysia runs no separate public-sector regime: suppliers to government bodies submit through MyInvois like every other taxpayer. Statutory bodies, statutory authorities and local authorities lost their own exemption for goods and services supplied from 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: 7 years retention.

Suppliers submit each document to MyInvois; HASiL validates it in near real time and returns a unique identifier and QR code.

Malaysia has penalties for e-Invoicing non-compliance. Failure to Issue an e-Invoice: RM200 to RM20,000 per instance.

The next e-Invoicing deadline in Malaysia is 31 December 2027: Fourth-phase interim relaxation ends. Table 16.1 of the e-Invoice Specific Guideline ends the interim relaxation for taxpayers with turnover up to RM5 million on 31 December 2027.

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 1 August 2024. Issuing e-invoices applies from 1 August 2024; every in-scope business is covered from 1 July 2026. Scope: Sales to consumers, by individual e-invoice or monthly consolidated e-invoice. Suppliers issue an e-invoice to each buyer or consolidate a month of receipts within seven calendar days after month end, under section 3.6.2 of the e-Invoice Specific Guideline . Since 1 January 2026 any transaction above RM10,000 needs its own e-invoice.

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