E-Invoicing Timeline and Exemption Threshold Updates (Announced on 5 June 2025)
- StanleyCo
- 10 hours ago
- 3 min read

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.
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New Relaxation Periods:
1 August 2024 – 31 January 2025 (Revenue > RM100M)
1 January 2025 – 30 June 2025 (Revenue RM25M - RM100M)
1 July 2025 – 31 December 2025 (Revenue RM5M - RM25M) - updated
1 January 2026 – 30 June 2026 (Revenue RM1M - RM5M) - updated
1 July 2026 – 31 December 2026 (Revenue RM500,000 - RM1M) - updated
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Special Note:Â 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.
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✅ 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:
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.
For new businesses starting from 2026 onwards
The implementation date will be either 1 July 2026Â 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.
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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.
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✅ Impact: Ensure your system can flag and process high-value transactions accordingly.
Reference: Latest E-Invoice Guidelines