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E-Invoicing Timeline and Exemption Threshold Updates (Announced on 5 June 2025)



The Inland Revenue Board (IRB) announced significant revisions to Malaysia’s national e-Invoicing rollout (published on 5 June 2025). The update includes an extended implementation timeline for smaller businesses and a raised exemption threshold—businesses with annual revenue below RM500,000 will now be exempt from the e-Invoicing requirement.

A summary of the key changes is provided below to help you stay informed and prepared.

1. Revised Implementation Timeline for E-Invoice & Exemption Update


  • Businesses with annual revenue between RM1 million and RM5 million: Implementation postponed to 1 January 2026.


  • Businesses with annual revenue between RM500,000 and RM1 million: Implementation postponed to 1 July 2026.


  • Businesses with an annual revenue of below RM500,000 will be exempted from e-invoicing for the time being.

New Implementation Phases:

Revenue Range

Implementation Date

More than RM100 million

1 August 2024

More than RM25 million and up to RM100 million

1 January 2025

More than RM5 million and up to RM25 million

1 July 2025 (updated)

More than RM1 million and up to RM5 million

1 January 2026 (updated)

More than RM500,000 and up to RM1 million

1 July 2026 (updated)

Below RM500,000

Exempt from e-Invoice requirements (updated)

 ✅ Impact: SMEs have more time to adapt.

2. Extended Interim Relaxation Periods

What changed?

  • Originally, there were four phases of relaxation to help businesses transition smoothly.

  • Now, there are five phases, aligning with the revised implementation phases.

 

New Relaxation Periods:

  1. 1 August 2024 – 31 January 2025 (Revenue > RM100M)

  2. 1 January 2025 – 30 June 2025 (Revenue RM25M - RM100M)

  3. 1 July 2025 – 31 December 2025 (Revenue RM5M - RM25M) - updated

  4. 1 January 2026 – 30 June 2026 (Revenue RM1M - RM5M) - updated

  5. 1 July 2026 – 31 December 2026 (Revenue RM500,000 - RM1M) - updated

 


Special Note: During the interim relaxation period, instead of the rigid requirements, businesses can issue monthly consolidated e-Invoices with simplified descriptions, but they must submit them to IRBM within 7 days after month-end and maintain accurate records. Despite flexibilities, e-Invoicing remains mandatory, and businesses should ensure system readiness for full compliance post-relaxation.

 

✅ Impact: Businesses are given a phased transition period to prepare before full enforcement begins.



3. E-Invoicing Requirements for New Businesses

The IRB has also clarified the implementation timeline for newly established businesses:

  1. For new businesses commencing between 2023 and 2025

    • If the annual turnover or revenue reaches RM500,000, the e-Invoicing implementation date is 1 July 2026.


  2. For new businesses starting from 2026 onwards

    • The implementation date will be either 1 July 2026 or the business commencement date, whichever is later.


    • However, if the first year's turnover is below RM500,000, e-Invoicing will only be required from 1 January of the second year after the year in which the business exceeds the RM500,000 threshold.


📌 Example: If a new company starts in 2026 and only reaches RM500,000 turnover in 2028, its e-Invoicing implementation date will be 1 January 2030.

 



4. Mandatory E-Invoice for Transactions Above RM10,000

Effective 1 January 2026, all businesses must issue individual e-Invoices for any single transaction exceeding RM10,000, regardless of industry. Consolidated e-Invoices will not be allowed for such transactions after this date.

 

✅ Impact: Ensure your system can flag and process high-value transactions accordingly.


Reference: Latest E-Invoice Guidelines

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