The Inland Revenue Board of Malaysia (IRBM) has introduced a phased rollout of e-Invoice Malaysia. One key area of focus is how the rules apply to new businesses e-Invoice implementation, especially those that begin operations between 2023 and 2025. Understanding the e-Invoice implementation deadline is crucial for compliance.
New Businesses in Malaysia and the RM500,000 e-invoicing Threshold
For companies set up between 2023 and 2025, the rule is straightforward. If annual turnover or revenue reaches RM500,000 or more, the business must implement e-Invoice by 1 July 2026.
- Applies to all businesses starting in 2023, 2024, or 2025.
- The threshold is RM500,000 annual revenue.
- The deadline is fixed at 1 July 2026 for those crossing the threshold.
If Revenue Falls Below RM500,000
If the business earns less than RM500,000 in its first year, the requirement is delayed. Once the RM500,000 threshold is crossed, the business must start e-Invoice from 1 January of the second year after exceeding the limit.
Example:
- Company starts in 2024, revenue is RM300,000.
- In 2025, revenue rises to RM600,000.
- Implementation begins 1 January 2027.
Clarifying Different e-invoicing Scenarios for Companies in Malaysia
To avoid confusion, here is a breakdown of how e-Invoice deadlines apply across different types of companies:
Companies operating since YA 2022
- Not exempt: Must start e-Invoice by 1 July 2026.
- Revenue between RM500,000 and RM1 million in YA2022: Phase 5, begins 1 July 2026.
- Revenue below RM500,000 in YA2022:
- If revenue exceeds RM500,000 during YA2023–YA2025 → start 1 July 2026.
- If revenue exceeds RM500,000 only in YA2026 or later → start 1 January of the second year after crossing the threshold.
- If revenue exceeds RM500,000 during YA2023–YA2025 → start 1 July 2026.
Companies in Malaysia starting in YA2023–YA2025
- Revenue above RM500,000 → start 1 July 2026.
- Revenue below RM500,000 → exempt from e-invoicing
- If the threshold is crossed only in YA2026 or later → start 1 January of the second year after crossing the threshold.
Companies in Malaysia starting in YA2026
- Revenue of RM500,000 or more → implement from 1 January 2028.
- Revenue below RM500,000 → exempt from e-Invoice requirement.
Why These e-invoice Implementation Rules Matter
This structure ensures businesses of different sizes and starting periods have time to adjust. It also aligns with the latest e-Invoice update, which introduces compliance in phases rather than all at once.
What New Businesses in Malaysia Should Do
To prepare for e-Invoice Malaysia:
- Track revenue carefully against the RM500,000 threshold.
- Review whether your company qualifies for exemption.
- Set up accounting systems that support e-Invoice integration.
- Consider early voluntary adoption for smoother transition.
Conclusion
For businesses starting between 2023 and 2025, crossing the RM500,000 revenue line sets the e-Invoice implementation deadline at 1 July 2026. Companies starting earlier or later have different timelines, but the direction is clear: all businesses above the threshold will eventually need to comply with e-Invoice Malaysia. Preparing now ensures compliance with the latest e-Invoice update and avoids last-minute disruptions.
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Contact JomeInvoice Sdn Bhd:
- Address:
Level 38, MYEG Tower, Empire City Damansara, Jalan PJU 8, Damansara Perdana, 47820 Petaling Jaya, Selangor
D-04-07, Plaza Bukit Jalil (Aurora Place), No. 1, Persiaran Jalil 1, Bandar Bukit Jalil, 57000 Kuala Lumpur - Phone: +6016-732 0163
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