- New on 30 August 2026: the e-Invoice General Guideline v4.8 raises the MSME exemption threshold from RM1 million (historical) to RM3 million annual turnover or revenue. Businesses below RM3M are exempt unless caught by the related-company carve-outs in §1.6.10. Phase dates are unchanged. [e-Invoice General Guideline v4.8, §1.6.1(e), §1.6.10]
- The current e-Invoice Specific Guideline is v4.8, published 7 July 2026. Its only change over Specific Guideline v4.7 is the new Section 17 SVDP amnesty. [LHDN, e-Invoice Specific Guideline v4.8]
- The SVDP (Special Voluntary Disclosure Programme) amnesty (7 July 2026 – 31 December 2027) lets businesses back-file missed or erroneous e-invoices with no penalties, no prosecution, and no compliance review on the disclosed invoices. [e-Invoice Specific Guideline v4.8, Section 17]
- The Phase 4 grace period was extended twice in 2026: first to 31 December 2026 (January announcement), then to 31 December 2027 (April announcement). Penalty enforcement now begins 1 January 2028. [LHDN e-Invoice General FAQs, FAQ 104, April 2026 update]
- The RM10,000 rule is unaffected by every extension: any single transaction exceeding RM10,000 requires an individual e-invoice, in every phase, from 1 January 2026. [e-Invoice Specific Guideline v4.8, Table 3.6]
- During the relaxation period, businesses issuing monthly consolidated e-invoices within 7 days of month-end face no prosecution under Section 120 of the Income Tax Act, and may even decline buyer requests for individual e-invoices. [e-Invoice Specific Guideline v4.8, Sections 16.2–16.3]
Malaysia’s e-invoice rules set by Lembaga Hasil Dalam Negeri (LHDN, the Inland Revenue Board of Malaysia) have changed repeatedly since the mandate began in August 2024: new guideline versions, extended relaxation periods, a penalty amnesty, and most recently an MSME exemption threshold raised to RM3 million. This page is a running changelog of every LHDN e-invoice implementation update, newest first, with what each change means in practice. We update it whenever LHDN publishes a new guideline version or the government announces a timeline change.
Current status at a glance (30 August 2026): the governing documents are the e-Invoice General Guideline v4.8 (30 August 2026) and the e-Invoice Specific Guideline v4.8 (7 July 2026). Businesses with annual turnover or revenue below RM3 million are exempt, subject to the related-company carve-outs in §1.6.10. Phase 4 businesses (RM3M–RM5M revenue) are in a relaxation period until 31 December 2027, with penalty enforcement from 1 January 2028. The SVDP amnesty for back-filing missed e-invoices is open until 31 December 2027.
The Changelog: Every LHDN e-Invoice Update, Newest First
30 August 2026: e-Invoice General Guideline v4.8 published: MSME exemption threshold raised to RM3 million
LHDN published e-Invoice General Guideline v4.8, superseding General Guideline v4.7 (7 July 2026). Per its Summary of Changes, four clauses moved: §1.5 and §1.6.1(e) were amended, and §1.6.9 and §1.6.10 were added. The net effect is that the MSME exemption threshold rises from RM1 million to RM3 million annual turnover or revenue. [e-Invoice General Guideline v4.8, §1.6.1(e)]
What changed, clause by clause:
- §1.6.1(e): 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 General Guideline v4.7 the figure was RM1,000,000 (in force December 2025 to 29 August 2026; RM500,000 before that).
- §1.6.10 (new): the RM3M exemption applies to all categories of taxpayer (individuals, partnerships, companies, co-operatives and others), but not to a taxpayer that (a) has a non-individual shareholder with annual turnover or revenue of at least RM3M, (b) is a subsidiary of a holding company with annual turnover or revenue of at least RM3M, or (c) has a related company or joint venture with annual turnover or revenue of at least RM3M. “Related company” takes its meaning from section 2 of the Promotion of Investments Act 1986.
- §1.5 (amended): new businesses that commenced in 2023 to 2025 with annual turnover or revenue of at least RM3M implement from 1 July 2026. Businesses commencing from 2026 onwards implement from 1 July 2026 or their commencement date; if first-year revenue is expected to be below RM3M, the date becomes 1 January of the second year following the year in which revenue reaches RM3M.
- §1.6.9 (new): statutory bodies, statutory authorities, local authorities and international organisations are required to issue e-invoices from 1 July 2025 for goods sold or services performed.
What did not change: the Table 1.1 phase dates (Phase 4 still started 1 January 2026, so the Phase 4 population is now RM3M–RM5M); the relaxation period to 31 December 2027 and penalty enforcement from 1 January 2028 (Specific Guideline v4.8, Table 16.1); the SVDP window of 7 July 2026 to 31 December 2027; the RM10,000 individual e-invoice rule; and the “once mandated, always mandated” principle.
What it means: if your FY2022 revenue is between RM1M and RM3M and you had not yet implemented, you are now exempt unless one of the §1.6.10 carve-outs applies. If you are between RM3M and RM5M, nothing changes: you are in Phase 4 with relaxation until 31 December 2027. Read our analysis of the RM3 million exemption threshold in General Guideline v4.8 for the full breakdown.
Open questions: the guideline text does not say whether RM1M–RM3M businesses that have already implemented e-invoicing are released from the mandate, and the Specific Guideline and the LHDN FAQs (which still cite RM1 million) had not been updated as of 30 August 2026. This entry is based on the guideline text; we will update it when LHDN publishes further guidance. Source: e-Invoice General Guideline v4.8 (PDF), 30 August 2026.
7 July 2026: Guideline v4.8: the SVDP penalty amnesty
LHDN published e-Invoice Specific Guideline v4.8, superseding v4.7. The only change is the addition of Section 17: the e-Invoice Special Voluntary Disclosure Programme (SVDP), plus worked Examples 23–25.
What it means: businesses that missed submissions since their mandatory date, submitted erroneous e-invoices, or never submitted at all can back-file under the SVDP between 7 July 2026 and 31 December 2027 with no compliance review, no penalties, and no prosecution on the disclosed invoices. Back-filing must be one consolidated e-invoice per month of transaction (not a lump sum across months), using the dedicated version tags SVDP 1.2 or SVDP 1.3. Transactions exceeding RM10,000 must still be back-filed as individual e-invoices. Relief does not cover fraud, wilful default, or negligence. [e-Invoice Specific Guideline v4.8, S.17.1–S.17.6, Examples 23–25] In practice, back-filing several missed months is mostly a data-extraction exercise: pulling each month’s sales totals from your POS or accounting system, then submitting one consolidated e-invoice per month under the SVDP version tag, with any single transaction exceeding RM10,000 filed individually.
20–21 April 2026: Phase 4 grace period extended to 31 December 2027
Prime Minister Datuk Seri Anwar Ibrahim announced a further 12-month extension of the Phase 4 relaxation period, reported by Business Today (20 Apr 2026) and The Star (21 Apr 2026), and reflected in LHDN’s FAQ 104 (April 2026 update).
What it means: Phase 4 businesses (then RM1M–RM5M, RM3M–RM5M since 30 August 2026; mandatory start 1 January 2026) and new businesses commenced 2023–2025 with revenue of RM1M+ (the threshold at the time, now RM3M; mandatory start 1 July 2026) both have relaxation until 31 December 2027, with penalty enforcement from 1 January 2028. The mandatory start dates did not move. For the full breakdown, timeline tables, and an implementation plan, see our Phase 4 extension guide.
20 April 2026: Specific Guideline v4.7: relaxation rules consolidated in Table 16.1
LHDN published Specific Guideline v4.7. Table 16.1 was amended to group Phase 4 established businesses and qualifying new businesses under “taxpayers with annual turnover or revenue of up to RM5 million”, both with relaxation until 31 December 2027. Section 16.2 was clarified: the relaxation covers all Section 3.7 activities, and sellers may decline individual e-invoice requests during the relaxation. [LHDN, Specific Guideline v4.7]
3 February 2026: LHDN discloses enforcement findings
LHDN announced it had identified more than 500,000 non-compliant cases across all phases and RM1.4 billion in unreported income. [LHDN media release, 3 Feb 2026]
What it means: the repeated extensions are not a signal of soft enforcement. LHDN is actively monitoring compliance during the relaxation period, and businesses treating the grace period as a pause are building audit exposure. Our guide to how LHDN uses e-invoice data to detect tax avoidance explains what the data trail reveals.
5 January 2026: First Phase 4 extension + Guideline v4.6
The government extended the Phase 4 relaxation period from six months to twelve (then ending 31 December 2026, with enforcement from 1 January 2027; since superseded by the April extension above). LHDN published Specific Guideline v4.6 and updated the General FAQs the same day.
What it means at the time: Phase 4 businesses gained a full year of penalty-free implementation. This announcement also confirmed the relaxation conditions: consolidated e-invoices within 7 days of month-end, general product/service descriptions allowed, and self-billed consolidation for all Section 8.3 scenarios.
1 January 2026: Phase 4 goes mandatory; RM10,000 rule takes effect
Phase 4 (then RM1M–RM5M revenue, FY2022 basis; the lower bound rose to RM3M on 30 August 2026) became subject to mandatory e-invoicing. Simultaneously, the RM10,000 individual e-invoice rule took effect: any single transaction exceeding RM10,000 cannot be consolidated, in any industry, in any phase. Electricity and telecommunications were added to the no-consolidation industry list. [e-Invoice Specific Guideline v4.8, Table 3.6]
December 2025: Phase 4 threshold raised from RM500K to RM1M
The government revised the Phase 4 threshold from RM500,000 to RM1 million, exempting Malaysia’s smallest businesses from the mandate entirely (subject to the related-company caveats). Businesses below RM1M annual revenue were exempt under this rule until 29 August 2026, when General Guideline v4.8 raised the threshold to RM3M (see the 30 August 2026 entry above). See our MSME e-invoice exemption guide for the eligibility rules.
15 December 2025: Compliance Review Framework published
LHDN published the e-Invoice Compliance Review Framework, effective the same day, setting out how LHDN selects, conducts, and closes e-invoice compliance reviews. Our breakdown of the LHDN compliance review framework covers what LHDN checks and how to prepare.
2024–2025: Phases 1 to 3 roll out as scheduled
- 1 August 2024: Phase 1 mandatory (revenue above RM100M). Relaxation ended 31 January 2025.
- 1 January 2025: Phase 2 mandatory (RM25M–RM100M). Relaxation ended 30 June 2025.
- 1 July 2025: Phase 3 mandatory (RM5M–RM25M). Relaxation ended 31 December 2025.
Enforcement is active for all three phases today. Every phase launched on schedule: grace periods have flexed, but no phase has been cancelled or postponed.
The Current Implementation Timeline (as of 30 August 2026)
| Phase | Revenue Threshold (FY2022) | Mandatory Start | Relaxation Ends | Enforcement |
|---|---|---|---|---|
| Phase 1 | Above RM100M | 1 Aug 2024 | 31 Jan 2025 | Active now |
| Phase 2 | RM25M–RM100M | 1 Jan 2025 | 30 Jun 2025 | Active now |
| Phase 3 | RM5M–RM25M | 1 Jul 2025 | 31 Dec 2025 | Active now |
| Phase 4 | RM3M–RM5M | 1 Jan 2026 | 31 Dec 2027 | 1 Jan 2028 |
| New businesses (2023–2025, revenue ≥ RM3M) | RM3M+ | 1 Jul 2026 | 31 Dec 2027 | 1 Jan 2028 |
| Below RM3M | Exempt (subject to §1.6.10 carve-outs) | N/A | N/A | N/A |
Source: e-Invoice General Guideline v4.8 (30 Aug 2026), §1.5, §1.6.1(e), §1.6.10; e-Invoice Specific Guideline v4.8 (7 Jul 2026), Table 16.1; LHDN e-Invoice General FAQs (updated April 2026), FAQ 104
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What the Relaxation Period Requires (Penalty Relief Conditions)
The relaxation period is not an exemption. It is a set of relaxed compliance options under Section 16.2 of the Specific Guideline v4.8, and penalty protection depends on meeting them.
To qualify for penalty relief during the relaxation period, a business must:
- Submit a consolidated e-invoice (or consolidated self-billed e-invoice) within 7 calendar days after month-end, covering that month’s transactions. For the mechanics, see our consolidated e-invoice guide.
- Still issue individual e-invoices for any single transaction exceeding RM10,000. This rule applies to all businesses in every phase and is not relaxed. [e-Invoice Specific Guideline v4.8, Table 3.6]
What the relaxation additionally allows:
- General descriptions in the “Product or Service Description” field (for example, “January sales total”) instead of receipt-level line items. [S.16.2(c)]
- Consolidated self-billed e-invoices for all Section 8.3 self-billed scenarios: payments to agents/dealers/distributors, foreign suppliers, profit distribution, e-commerce transactions, betting and gaming payouts, transactions with individuals, interest, insurance claims, and capital reduction distributions. See our self-billed e-invoice scenarios guide.
- Consolidation even in industries normally restricted from it (automotive, aviation, construction, betting and gaming, agent/dealer payments, electricity, telecommunications; the luxury goods and jewellery restriction is on hold and not yet enforced), because the relaxation covers all Section 3.7 activities. The RM10,000 rule still overrides. [Specific Guideline v4.8, S.16.2; Table 3.6]
- Declining a buyer’s request for an individual e-invoice, provided the consolidated conditions above are followed. [S.16.2(d)]
Businesses meeting conditions (a) and (b) face no prosecution under Section 120 of the Income Tax Act 1967 during the relaxation period. [S.16.3] On 1 January 2028, these concessions end and normal rules resume in full: receipt-level or reference-numbered descriptions, buyer requests must be honoured, and industry consolidation restrictions return.
For a side-by-side comparison of running your e-invoicing with versus without the relaxation concessions, see e-invoice implementation with and without a grace period.
What Happens When You Get It Wrong
Failure to meet the relaxation conditions removes penalty protection. Once enforcement begins (already active for Phases 1–3; from 1 January 2028 for Phase 4), non-compliance carries fines of RM200–RM20,000 per invoice, imprisonment of up to 6 months, or both, under Section 120(1)(d) of the Income Tax Act 1967. Our e-invoice penalty guide covers how LHDN applies these penalties.
If you have already fallen behind, the SVDP amnesty (see the 7 July 2026 entry above) is the designed exit: back-file the gap months penalty-free before 31 December 2027.
How JomeInvoice Keeps You Aligned with Every Update
JomeInvoice is a Malaysian-built, government-certified (MySTI) e-invoicing middleware that connects your existing POS, ERP, e-commerce, or accounting systems to LHDN’s MyInvois. Its compliance rules are updated centrally whenever LHDN publishes a new guideline version, so rule changes like the RM3 million exemption threshold in General Guideline v4.8, the relaxation rules in the Specific Guideline’s Table 16.1, or the SVDP version tags never become your integration project.
For businesses on the relaxation track, JomeInvoice automates monthly consolidated e-invoice batching within the 7-day deadline and enforces the RM10,000 individual-invoice rule automatically. For businesses moving to full compliance ahead of 2028, it handles real-time validation, 72-hour cancellation management, and self-billed workflows.
Where to start: SMEs can explore plans at sme.jomeinvoice.my; larger businesses can book a demo to discuss ERP integration (SAP, Oracle NetSuite, Microsoft Dynamics, and others via API).
Recommended Next Steps
- Check which phase your business falls in using the current implementation timeline table above.
- If you are in the relaxation period, confirm you meet the penalty relief conditions: consolidated e-invoices within 7 days of month-end and individual e-invoices for transactions exceeding RM10,000.
- If you have missed submissions since your mandatory date, back-file them under the SVDP amnesty (see the 7 July 2026 entry above) before 31 December 2027.
- Bookmark this page and check back after any LHDN announcement, or subscribe to updates from hasil.gov.my.
- Review the LHDN compliance review framework to understand how LHDN audits e-invoice compliance.
Stay compliant through every guideline version.
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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 latest LHDN e-invoice implementation update?
The most recent update is the e-Invoice General Guideline v4.8, published 30 August 2026, which raised the MSME exemption threshold from RM1 million to RM3 million annual turnover or revenue and added related-company carve-outs in §1.6.10. Before that, the e-Invoice Specific Guideline v4.8 (7 July 2026) introduced the Section 17 SVDP amnesty allowing businesses to back-file missed or erroneous e-invoices penalty-free until 31 December 2027. The most recent timeline change was the April 2026 extension of the Phase 4 grace period to 31 December 2027.
When does e-invoice enforcement start for Phase 4 businesses?
1 January 2028. The relaxation period for Phase 4 businesses (RM3M–RM5M revenue) ends on 31 December 2027, following the April 2026 extension announced by the Prime Minister and reflected in LHDN FAQ 104. The mandatory start date remains 1 January 2026.
Is the relaxation period an exemption from e-invoicing?
No. Businesses must still submit e-invoices during the relaxation period. The relaxation only permits simplified compliance: monthly consolidated e-invoices submitted within 7 days of month-end, general transaction descriptions, and consolidated self-billed e-invoices. Missing these conditions removes penalty protection. [e-Invoice Specific Guideline v4.8, Section 16.2]
Does the RM10,000 rule apply during the relaxation period?
Yes. Any single transaction exceeding RM10,000 requires an individual e-invoice and cannot be consolidated. This applies to all businesses in every phase from 1 January 2026, and no extension or relaxation has changed it. [e-Invoice Specific Guideline v4.8, Table 3.6]
What guideline version is currently in force?
Two documents. The e-Invoice General Guideline v4.8, published 30 August 2026, sets the RM3 million exemption threshold and the phase framework; it supersedes General Guideline v4.7 (7 July 2026). The e-Invoice Specific Guideline v4.8, published 7 July 2026, carries the relaxation rules and the SVDP; it supersedes Specific Guideline v4.7 (20 April 2026) and added only Section 17 plus Examples 23–25.
Can buyers force me to issue individual e-invoices during the relaxation period?
No. Under Section 16.2(d) of the Specific Guideline v4.8, a business following the relaxed consolidation conditions may decline individual e-invoice requests during the relaxation period. Once the relaxation ends on 31 December 2027, buyer requests made within the transaction month must be honoured again.
How often is this page updated?
Whenever LHDN publishes a new guideline version, updates its FAQs, or the government announces a timeline change. Each entry above is dated and cites its source. The page was last reviewed on 30 August 2026 against General Guideline v4.8 and Specific Guideline v4.8.
Last updated: 30 August 2026 | Written by Yinn Sheng Ng, Head of Marketing