1. Latest Announcement: e-Invoice Threshold Increased

The Inland Revenue Board of Malaysia (LHDN) has recently announced an important update to the mandatory e-Invoice implementation.

📌 Updated Threshold

• Annual sales below RM1,000,000
  👉 Temporarily exempted from mandatory e-Invoice implementation
  
  

• Annual sales of RM1,000,000 and above
  👉 Required to implement e-Invoice in accordance with LHDN’s rollout timeline
  
  

This updated threshold is expected to take effect from 2026, providing relief for many small and medium-sized enterprises (SMEs).

2. Updated e-Invoice Implementation Timeline

For businesses with annual turnover ≥ RM1,000,000, the implementation dates are as follows:

📌 Example:

If a company exceeds RM1,000,000 turnover on 31 December 2026,

👉 e-Invoice implementation starts on 1 January 2028.

⚠ Important Note on Related Companies

If a company’s turnover is below RM1,000,000, but its related company:

• has already implemented e-Invoice, or

• is required to implement e-Invoice on 1 January 2026 or 1 July 2026,

👉 the company will also be required to adopt e-Invoice from 1 July 2026, despite being below the threshold.

3. MyInvois e-POS Eligibility Expanded

Good news for small retailers and F&B businesses:

• MyInvois e-POS eligibility has increased
  
  

• From RM1,000,000 → RM2,000,000 annual turnover

This makes compliance easier for smaller businesses with simpler transaction needs.

4. Does Being Below RM1,000,000 Mean You Can Ignore e-Invoice?

❌ Not recommended.

Even if your business is currently exempt, there are several practical considerations:

1️⃣ Your customers may already require e-Invoice

Large companies or corporate clients may require suppliers to issue e-Invoices for compliance and audit purposes.

2️⃣ Business growth will trigger future compliance

Once your annual revenue exceeds RM1,000,000, e-Invoice implementation will become mandatory. Preparing late may disrupt operations.

3️⃣ Policies may continue to evolve

Tax digitalisation is a long-term national direction. Thresholds and timelines may be revised again.

5. Which Businesses Should Start Preparing Early?

We strongly recommend early preparation if your business:

• Expects revenue growth in the next 1–2 years
  
  

• Is applying for bank financing or investor funding
  
  

• Works with large corporations or multinational companies
  
  

• Wants better financial transparency and professional reporting
  
  

• Is upgrading its accounting or ERP systems
  
  

Early preparation does not mean immediate full implementation it means planning wisely.

6. 4 Practical Steps to Prepare for e-Invoice

Step 1: Review your revenue trend
Assess whether your business is approaching the RM1,000,000 threshold.

Step 2: Review your invoicing and accounting process
Identify reliance on manual, Excel-based, or fragmented systems.

Step 3: Understand basic e-Invoice requirements
Learn about required invoice fields, formats, and system integration.

Step 4: Seek professional advice
Choose a solution that balances compliance, cost, and operational efficiency.

7. Conclusion: Higher Threshold Means Opportunity, Not Inaction

The increase in the e-Invoice threshold is not a reason to delay preparation — it is an opportunity to plan properly.

Early preparation leads to:
✔ Lower implementation costs
✔ Reduced compliance risks
✔ Smoother business operations