- The e-invoice exemption now covers “Taxpayers with an annual turnover or revenue of less than RM3,000,000”, up from RM1 million. [e-Invoice General Guideline v4.8, §1.6.1(e)]
- The exemption does not apply where a non-individual shareholder, holding company, related company, or joint venture has revenue of at least RM3 million. [e-Invoice General Guideline v4.8, §1.6.10]
- New businesses commenced 2023 to 2025 with revenue of at least RM3 million implement from 1 July 2026. [e-Invoice General Guideline v4.8, §1.5]
- Statutory bodies, statutory authorities, local authorities, and international organisations must e-invoice goods sold and services performed from 1 July 2025. [e-Invoice General Guideline v4.8, §1.6.9]
- Phase dates, the relaxation period to 31 December 2027, enforcement from 1 January 2028, and the SVDP window are unchanged. [e-Invoice Specific Guideline v4.8, Table 16.1 and §17]
Lembaga Hasil Dalam Negeri (LHDN, the Inland Revenue Board of Malaysia) has raised the e-invoice exemption threshold from RM1 million to RM3 million in annual turnover or revenue, in e-Invoice General Guideline Version 4.8, dated 30 August 2026. The same version adds three ownership-based carve-outs that keep subsidiaries, related companies, and joint ventures of RM3-million-plus groups inside the mandate, and rewrites the new-business rule around the RM3 million figure.
At the time of writing LHDN has not issued a separate media release or updated its e-Invoice FAQs. This article is based on the guideline text itself, and we will update it as soon as LHDN publishes further clarification.
What Changed in General Guideline v4.8
General Guideline v4.8 replaces v4.7 of 7 July 2026. Its Summary of Changes lists exactly four items: two amendments and two additions. [e-Invoice General Guideline v4.8, Summary of Changes] The official PDF sits on hasil.gov.my, which returned server errors for parts of 30 August 2026; if it will not load, the English and Bahasa Malaysia v4.8 PDFs are also available on our LHDN e-invoice resources page.
| Clause | v4.7 (7 July 2026) | v4.8 (30 August 2026) |
|---|---|---|
| §1.6.1(e) exemption threshold | Annual turnover or revenue of less than RM1,000,000 | Annual turnover or revenue of less than RM3,000,000 |
| §1.5 new-business rule | RM1,000,000 governs new-business timing | RM3,000,000 governs new-business timing |
| §1.6.9 public bodies | Not present | Statutory bodies, statutory authorities, local authorities, and international organisations required from 1 July 2025 for goods sold or services performed |
| §1.6.10 carve-outs | Not present | Exemption denied where a non-individual shareholder, holding company, related company, or joint venture has revenue of at least RM3,000,000 |
The threshold has now been set at three levels: RM500,000 as originally planned, RM1 million from December 2025, and RM3 million from 30 August 2026. For every version and extension in one place, see our LHDN e-invoice implementation update changelog.
Who Is Now Exempt, and Who Is Not
Section 1.6.1 lists the persons “currently exempted from issuing e-Invoice (including issuance of self-billed e-Invoice)”, and item (e) now reads: “Taxpayers with an annual turnover or revenue of less than RM3,000,000”. [e-Invoice General Guideline v4.8, §1.6.1(e)]
The new Section 1.6.10 confirms the exemption “applies to all categories of taxpayers (e.g., individuals, partnerships, companies, co-operatives, etc.)”, then removes it in three situations. The exemption does not apply to:
- “taxpayer with non-individual shareholder(s) (or equivalent) with annual turnover or revenue of at least RM3,000,000”
- “taxpayer is a subsidiary of a holding company with annual turnover or revenue of at least RM3,000,000”
- “taxpayer has related company / joint venture with annual turnover or revenue of at least RM3,000,000”
“Related company” takes its meaning from section 2 of the Promotion of Investments Act 1986. [e-Invoice General Guideline v4.8, §1.6.10]
In practice, a stand-alone company turning over RM2 million and owned by individuals is exempt. The same company is not exempt if a corporate shareholder, its parent, or a sister company crosses RM3 million. Our related-company e-invoice FAQ shows how to test a group structure against a clause like this.
Not sure whether the RM3 million exemption covers your group structure?
Talk to the JomeInvoice team before you switch anything off.
New Businesses: The Amended Section 1.5 Rule
The guideline now states: “For new businesses or operations commencing from the year 2023 to 2025 with an annual turnover or revenue of at least RM3,000,000, the e-Invoice implementation date is 1 July 2026.” [e-Invoice General Guideline v4.8, §1.5]
For businesses starting in 2026 or later, the date is “1 July 2026 or upon the operation commencement date”. If first-year revenue is expected to be below RM3 million, the date becomes “1 January in the second year following the year in which the total annual turnover or revenue reached RM3,000,000”. [e-Invoice General Guideline v4.8, §1.5] A company incorporated in 2026 that first exceeds RM3 million in 2027 would therefore implement from 1 January 2029.
What Has Not Changed
Table 1.1 still places Phase 4 (“annual turnover or revenue of up to RM5 million”) at 1 January 2026. [e-Invoice General Guideline v4.8, Table 1.1] The full phase structure is set out in our complete guide to LHDN e-invoicing in Malaysia. The relaxation period runs to 31 December 2027 with penalty enforcement from 1 January 2028, and the Special Voluntary Disclosure Programme (SVDP) remains open from 7 July 2026 to 31 December 2027. [e-Invoice Specific Guideline v4.8, Table 16.1 and §17] The MyInvois SDK validation change effective 23 October 2026 is unaffected.
Section 1.5 also keeps the principle that once an implementation date is determined, “any changes to the taxpayer’s annual turnover or revenue in subsequent years will not change the taxpayer’s obligations to implement e-Invoice”. [e-Invoice General Guideline v4.8, §1.5] Relaxation conditions are covered in our Phase 4 extension guide.
What Businesses Should Do Now
Revenue below RM3 million, not yet implemented
You are exempt under §1.6.1(e) unless a §1.6.10 carve-out applies. Document your shareholding and group structure now, because the exemption turns on who owns you, not only on your revenue. Your normal receipts remain valid proof of expense for buyers. [e-Invoice General Guideline v4.8, §1.6.2] Start with our SME exemption guide.
Revenue RM3 million to RM5 million (Phase 4)
Nothing changes. Your mandatory date remains 1 January 2026, and monthly consolidated e-invoices within 7 days of month-end keep you inside the penalty-relief conditions until 31 December 2027. [e-Invoice Specific Guideline v4.8, §16.2] Confirm your setup with the compliance checklist and review the penalty guide for what applies from 2028.
Revenue RM1 million to RM3 million, already implemented
Do not switch off your e-invoicing yet. The guideline is silent on whether businesses that implemented under the RM1 million threshold are now released, and voluntary participation is expressly permitted “regardless of their annual turnover or revenue”. [e-Invoice General Guideline v4.8, §1.5] Continue as you are until LHDN clarifies.
Two Open Questions LHDN Has Not Answered Yet
First, are businesses between RM1 million and RM3 million that already implemented now released? The “once mandated, always mandated” wording in §1.5 was written about revenue changes, not threshold changes, so we present it as the governing principle rather than as LHDN’s ruling on this case.
Second, will the e-Invoice Specific Guideline and the General FAQs be updated to match? As at 30 August 2026 the Specific Guideline remains at v4.8 of 7 July 2026. We will update this article and our e-invoicing FAQ hub when either document changes.
How JomeInvoice Handles Guideline Changes
JomeInvoice is Malaysian-built e-invoicing middleware, certified to ISO 9001, ISO 20000-1, and ISO 27001, that connects your ERP, POS, e-commerce, or accounting system to MyInvois through a custom integration built on API, SFTP, or webhooks. Consolidation conditions and Tax Identification Number (TIN) format checks are maintained centrally, and our team tracks every guideline version, so a change like v4.8 is absorbed by us rather than by your finance or IT team.
If you are unsure whether a §1.6.10 carve-out pulls your group into the mandate, contact our team and we will walk through your structure against the v4.8 text.
Read the carve-outs before you celebrate the threshold
The RM3 million exemption is in the guideline, but §1.6.10 means ownership, not turnover alone, decides who qualifies. Check your shareholding against the three carve-outs before relying on it, and if you are already live, hold position until LHDN confirms how the change applies to you.
Keep your e-invoicing aligned with every LHDN guideline version.
ISO 27001-certified middleware, custom-integrated to your ERP, POS, or accounting system.
Disclaimer: This article is for general informational purposes only and does not constitute legal or tax advice. LHDN guidelines are subject to updates. Always refer to the latest official LHDN e-Invoice Guidelines at myinvois.hasil.gov.my and consult a qualified tax professional for advice specific to your business.
Frequently Asked Questions
What is the new e-invoice exemption threshold in Malaysia?
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 General Guideline v4.8 published on 30 August 2026. The previous threshold was RM1 million.
When did the RM3 million e-invoice exemption take effect?
The e-Invoice General Guideline v4.8 carries a date of publication of 30 August 2026. The guideline states no separate effective date, and LHDN has not yet issued a media release or FAQ update on the change.
Who is excluded from the RM3 million exemption?
Section 1.6.10 excludes taxpayers with a non-individual shareholder whose revenue is at least RM3 million, subsidiaries of a holding company with revenue of at least RM3 million, and taxpayers with a related company or joint venture with revenue of at least RM3 million.
My business earns RM2 million and already issues e-invoices. Can I stop?
Not yet, in our view. The guideline does not address this case. Section 1.5 states that a determined implementation obligation does not change with later revenue movements, and voluntary participation is permitted. Continue issuing e-invoices until LHDN clarifies the position.
Has the Phase 4 deadline or relaxation period changed?
No. Phase 4 remains at 1 January 2026, relaxation runs to 31 December 2027, and penalty enforcement begins 1 January 2028 under Table 16.1 of the e-Invoice Specific Guideline v4.8. The SVDP window to 31 December 2027 is also unchanged.
What does v4.8 say about new businesses?
Businesses commenced 2023 to 2025 with revenue of at least RM3 million implement from 1 July 2026. Those commencing from 2026 start on 1 July 2026 or on commencement; if first-year revenue is below RM3 million, the date is 1 January of the second year after revenue reaches RM3 million.
Last updated: 30 August 2026 | Written by Yinn Sheng Ng, Head of Marketing