- LHDN e-Invoice is Malaysia’s mandatory digital invoicing system — all invoices must be validated through the MyInvois platform before being issued to buyers. [e-Invoice Specific Guideline v4.8 (7 Jul 2026)]
- Businesses earning RM1 million to RM5 million annually must comply from 1 January 2026. A relaxation period runs until 31 December 2027, and normal rules resume in full on 1 January 2028. [Guideline v4.8, Section 16]
- Penalties run from RM200 to RM20,000 per non-compliant invoice, imprisonment of up to 6 months, or both, under Section 82C of the Income Tax Act 1967. [Para 120(1)(d)]
- Any single transaction exceeding RM10,000 requires its own individual e-Invoice and cannot be consolidated — for all businesses, in all phases, effective 1 January 2026. [Guideline v4.8, Table 3.6]
- Missed or erroneous e-invoices can be back-filed penalty-free under the e-Invoice Special Voluntary Disclosure Programme (SVDP) from 7 July 2026 to 31 December 2027. [Guideline v4.8, Section 17]
- LHDN validates each e-Invoice in near real-time — generally within two seconds — and assigns a unique identifier and QR code. [LHDN e-Invoice General FAQs, Q34]
The Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri, LHDN), also known as the Inland Revenue Board of Malaysia (IRBM), has made e-Invoice mandatory for all businesses above the applicable revenue threshold. From 1 August 2024 for the largest businesses to 1 January 2026 for SMEs, every commercial transaction must now be validated through MyInvois — LHDN’s official e-Invoice platform.
This guide covers everything you need to know: who must comply, the exact deadlines, how the submission process works, what happens if you don’t comply, the new penalty amnesty, and how to get started — all updated for e-Invoice Specific Guideline v4.8 (7 July 2026).
What Is LHDN e-Invoice?
An e-Invoice in Malaysia is a digitally structured invoice submitted to LHDN’s MyInvois system for validation before it is issued to the buyer. Unlike a traditional PDF or paper invoice, an e-Invoice is machine-readable XML or JSON, carries a unique validation identifier assigned by LHDN, and is embedded in a government-monitored audit trail.
The mandate operates under a Continuous Transaction Control (CTC) model. This means the government validates every invoice in near real-time — generally within two seconds — before it reaches the buyer. Once validated, LHDN assigns an IRBM Unique Identifier Number to the e-Invoice, creating an immutable record of the transaction. [LHDN e-Invoice General FAQs, Q34]
The legal basis is Section 82C of the Income Tax Act 1967 (ITA 1967), which requires every business above the applicable revenue threshold to issue a valid e-Invoice for every transaction. Failure to do so is a criminal offence carrying fines of RM200 to RM20,000 per invoice.
Who Must Comply — and When
LHDN has rolled out e-Invoice in phases based on annual revenue, starting with the largest businesses. Revenue is determined by FY2022 Audited Financial Statements (or tax return if no audit was required).
Implementation Phases
| Phase | Annual Revenue | Mandatory Start | Relaxation Ends | Full Enforcement |
|---|---|---|---|---|
| Phase 1 | >RM100 million | 1 August 2024 | 31 January 2025 | Active now |
| Phase 2 | RM25M – RM100M | 1 January 2025 | 30 June 2025 | Active now |
| Phase 3 | RM5M – RM25M | 1 July 2025 | 31 December 2025 | Active now |
| Phase 4 | RM1M – RM5M | 1 January 2026 | 31 December 2027 | 1 January 2028 |
| New businesses (Phase 4 accommodation) | RM1M+ (commenced 2023–2025) | 1 July 2026 | 31 December 2027 | 1 January 2028 |
| Below RM1M | <RM1M | Exempt — with important caveats (see below) | — | — |
Source: e-Invoice Specific Guideline v4.8 (7 Jul 2026); LHDN e-Invoice General FAQs
Since Guideline v4.7 (April 2026), LHDN’s Table 16.1 groups established Phase 4 businesses and qualifying new businesses together as “taxpayers with annual turnover or revenue of up to RM5 million”, with the two implementation dates above — both with relaxation until 31 December 2027. [Guideline v4.8, Table 16.1]
Note on the Phase 4 relaxation period (2026–2027): From 1 January 2026 to 31 December 2027, Phase 4 businesses may use consolidated e-Invoices with general descriptions. However, the RM10,000 rule remains strictly enforced — any single transaction exceeding RM10,000 requires its own individual e-Invoice immediately, no exceptions. See the full RM10,000 rule explainer for details.
Who Is Exempt?
Businesses with annual revenue below RM1 million are generally exempt from e-Invoice. However, the exemption does not apply if any of the following conditions are true:
- The business has a non-individual shareholder with annual turnover of RM1 million or more
- The business is a subsidiary of a holding company with annual turnover of RM1 million or more
- The business has a related company or joint venture partner with annual turnover of RM1 million or more
Businesses that fall into these categories must implement e-Invoice from 1 July 2026, regardless of their own revenue level. Once mandated, a business cannot re-qualify for the exemption in later years, even if its revenue falls below RM1 million. [LHDN e-Invoice General FAQs, Q89–Q94]
For a detailed breakdown of Phase 4 thresholds and exemption criteria, see our complete MSME e-Invoice exemption guide. For the latest Phase 4 deadline updates, read the Phase 4 deadline and compliance guide.
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How e-Invoice Works: The Submission Process
Every e-Invoice follows the same five-step validation loop before it is formally issued to the buyer.
- Generate the e-Invoice — Create the invoice in the required XML or JSON format, including all mandatory fields (see below). This can be done via the MyInvois portal, your accounting or ERP system with an e-Invoice module, or middleware like JomeInvoice.
- Submit to MyInvois — Send the e-Invoice to LHDN’s MyInvois platform via the portal, direct API, or a middleware provider.
- LHDN validates — LHDN validates the e-Invoice in near real-time (typically under two seconds). [LHDN e-Invoice General FAQs, Q34]
- Receive the IRBM Unique ID — On successful validation, LHDN assigns an IRBM Unique Identifier Number and QR code to the e-Invoice. This is your proof of compliance.
- Issue to buyer — Share the validated e-Invoice (with IRBM Unique ID and QR code) with your buyer. The buyer can independently verify the e-Invoice on the MyInvois portal.
72-hour cancellation window: A validated e-Invoice can be cancelled within 72 hours of LHDN validation if an error is discovered. After 72 hours, corrections must be made using a Credit Note, Debit Note, or Refund Note e-Invoice — not by cancelling the original. [LHDN e-Invoice General FAQs, Q39–Q40]
e-Invoice Document Types and Mandatory Fields
Document Types
Malaysia’s e-Invoice system supports eight document types under the MyInvois framework:
| Type | When to use |
|---|---|
| Invoice | Standard commercial transaction (B2B, B2C, B2G) |
| Credit Note | Reduce or cancel a previously issued e-Invoice after the 72-hour window |
| Debit Note | Increase the value of a previously issued e-Invoice |
| Refund Note | Record a refund issued to the buyer |
| Self-Billed Invoice | Buyer issues on behalf of seller (specific scenarios only — see below) |
| Self-Billed Credit Note | Buyer-issued credit adjustment for a self-billed invoice |
| Self-Billed Debit Note | Buyer-issued debit adjustment for a self-billed invoice |
| Self-Billed Refund Note | Buyer-issued refund record for a self-billed invoice |
Mandatory Fields on Every e-Invoice
The following information must be included on every e-Invoice submission. Missing or incorrect fields will cause validation to fail at LHDN. [e-Invoice Specific Guideline v4.8, Section 3.5]
| Category | Required fields |
|---|---|
| Supplier | Legal name, Tax Identification Number (TIN), registration number, address, Malaysia Standard Industrial Classification (MSIC) code, email, contact number |
| Buyer | Name, TIN (or general TIN code if buyer has none), registration number, address, contact information |
| Invoice details | Date, time, invoice number, document type code, currency, exchange rate (if applicable) |
| Line items | Description, quantity, unit price, discount, and subtotal per line |
| Tax | Tax type (Sales and Service Tax (SST)/GST/none), rate, amount per line, and total tax |
| Totals | Subtotal, total tax, grand total, rounding adjustments |
When a buyer does not have a specific TIN (e.g., a member of the public for B2C transactions), use the applicable general TIN code: EI00000000010 (general public), EI00000000020 (foreign buyers), EI00000000030 (foreign suppliers, used in self-billed e-Invoices), or EI00000000040 (government entities, statutory bodies and local authorities). Individual taxpayer TINs begin with the prefix “IG”. [e-Invoice Specific Guideline v4.8, Section 10.5]
Special Rules: Consolidated and Self-Billed e-Invoices
Consolidated e-Invoice
A consolidated e-Invoice summarises multiple transactions into a single monthly submission. It is permitted where the buyer has not requested an individual e-Invoice for a specific transaction.
Key rules for consolidated e-Invoices:
- Must be submitted to MyInvois within 7 calendar days after the end of the month [e-Invoice Specific Guideline v4.8, Section 3.6]
- Any transaction exceeding RM10,000 cannot be consolidated — it must have its own individual e-Invoice, regardless of phase or relaxation status
- Under the standard rules, if a buyer requests an individual e-Invoice within the same calendar month, the supplier must comply and cannot consolidate that transaction. Buyers must make their request within the month of the transaction; requests in subsequent months may be declined
- During the Phase 4 relaxation period (until 31 December 2027), the rule is different: a taxpayer that adopts the relaxation concessions may decline individual e-Invoice requests from buyers (and supplier requests, in self-billed cases) [e-Invoice Specific Guideline v4.8, Section 16.2(d)]
For a complete breakdown of consolidated e-Invoice rules, exceptions, and how to format a consolidated submission, see our consolidated e-Invoice guide.
Self-Billed e-Invoice
A self-billed e-Invoice is issued by the buyer on behalf of the seller. This is only permitted for specific scenarios defined in Section 8.3 of the e-Invoice Specific Guideline v4.8. You cannot issue a self-billed e-Invoice simply because your supplier failed to issue one.
Self-billing is required for scenarios including:
- Payments to agents, dealers, and distributors
- Payments to foreign suppliers (who are not required to issue Malaysian e-Invoices), including imports of goods and services
- Payments to individuals not conducting a business (e.g., individual landlords, individuals selling personal assets)
- e-Commerce platform fees and commissions — platforms such as Shopee, Lazada, and Grab issue self-billed e-Invoices to their merchants for commissions, incentives, and platform fees. Note: individual merchants do not need to issue e-Invoices for their own sales revenue on these platforms — the platform handles the e-invoice obligation for platform-related payments. [e-Invoice Specific Guideline v4.8, Section 8.3]
- Profit distributions (dividends, etc.)
- Interest payments, betting and gaming payouts, and insurance claims, compensation, and benefit payments
See our complete self-billed e-Invoice guide for all 9 scenarios, timing rules, and step-by-step issuance instructions.
Industries That Cannot Use Consolidated e-Invoices
Certain industries are required to issue individual e-Invoices for every transaction — consolidation is not permitted, regardless of transaction size. Per Table 3.6 of the e-Invoice Specific Guideline v4.8:
| Industry / Transaction | Prohibited from consolidation |
|---|---|
| Automotive (sale of motor vehicles) | From each business’s e-invoice implementation start date (Phase 1: Aug 2024; Phase 2: Jan 2025; Phase 3: Jul 2025; Phase 4: Jan 2026) |
| Aviation (flight tickets, private charter) | From each business’s e-invoice implementation start date |
| Construction (contracts under ITA 1967) | From each business’s e-invoice implementation start date |
| Licensed betting and gaming | From each business’s e-invoice implementation start date |
| Payments to agents, dealers, and distributors (all payments under Section 83A ITA) | From each business’s e-invoice implementation start date |
| Electricity (distribution, supply, or sale) | From 1 January 2026 (all phases) |
| Telecommunications (postpaid subscriptions, internet, device sales) | From 1 January 2026 (all phases) |
| All industries — any single transaction exceeding RM10,000 | From 1 January 2026 (all phases) |
| Luxury goods and jewellery | On hold — consolidation still permitted until further LHDN notice |
Source: e-Invoice Specific Guideline v4.8, Table 3.6
Important: Automotive, aviation, construction, betting/gaming, and agent payment businesses that have been in Phase 1, 2, or 3 have been required to issue individual e-Invoices for these transactions since their own implementation start dates — not since January 2026. Only electricity and telecom had a January 2026 effective date as a new addition to the list.
Penalties for Non-Compliance
Non-compliance carries serious financial and criminal consequences. Penalties apply per invoice — not per month or per audit. A business with 100 uninvoiced transactions faces 100 separate penalty counts.
| Offence | Legislation | Fine | Imprisonment |
|---|---|---|---|
| Fail to issue a valid e-Invoice | S.82C(1) ITA 1967 [Para 120(1)(d)] | RM200 – RM20,000 per invoice | Up to 6 months |
| Fail to issue a self-billed e-Invoice when required | S.82C(6) ITA 1967 [Para 120(1)(d)] | RM200 – RM20,000 per invoice | Up to 6 months |
| Fail to submit consolidated e-Invoice on time or incorrectly | S.82C(7) ITA 1967 [Para 120(1)(d)] | RM200 – RM20,000 per invoice | Up to 6 months |
When do penalties apply?
- Phases 1–3 (revenue above RM5 million): Full enforcement is active now. Penalties apply to all non-compliant transactions.
- Phase 4 (RM1M–RM5M): The relaxation period runs until 31 December 2027, and normal rules resume in full on 1 January 2028. During the relaxation period, no prosecution under Section 120 of the ITA 1967 applies to taxpayers who follow the consolidation concessions — but the obligation to issue e-Invoices or consolidated e-Invoices remains, and the RM10,000 rule is enforced throughout. [e-Invoice Specific Guideline v4.8, Sections 16.2–16.3]
Enforcement is already active. In February 2026, LHDN reported that e-Invoice audit checks had identified over 500,000 potential non-compliance cases and uncovered RM1.4 billion in unreported income [LHDN media release, 3 Feb 2026]. By April 2026, the figure had grown to RM3.5 billion [FMT, 27 Apr 2026].
LHDN’s compliance review framework allows audits covering up to 2 assessment years, with a 12-year prosecution window from the year of the offence [S.121(1) ITA 1967]. For a complete breakdown of the audit process and how to reduce your penalty exposure, see our e-Invoice penalty and enforcement guide.
For the latest compliance review framework details, see our e-invoicing compliance checklist.
e-Invoice SVDP: The Penalty Amnesty Running Until 31 December 2027
The e-Invoice Special Voluntary Disclosure Programme (SVDP) is an amnesty introduced in Guideline v4.8 that lets businesses regularise past e-Invoice non-compliance without penalties. The window runs from 7 July 2026 to 31 December 2027 and is live now. [e-Invoice Specific Guideline v4.8, Section 17]
What the SVDP offers: no compliance review, no penalties, and no prosecution on e-Invoices disclosed under the programme. [Guideline v4.8, S.17.3]
Who qualifies:
- Businesses that missed e-Invoice submissions since their mandatory date
- Businesses that submitted non-compliant or erroneous e-Invoices
- Businesses that never submitted anything at all
- Even taxpayers already under, or notified of, an e-Invoice compliance review [Guideline v4.8, S.17.1]
The rules:
- Back-filed submissions must use e-Invoice version tag SVDP 1.2 (without digital signature) or SVDP 1.3 (with digital signature) — these tags must not be used for normal submissions [S.17.5]
- Consolidated back-filing must be done as one consolidated e-Invoice per month of transaction — a single lump-sum across months is not allowed [S.17.6, Example 23]
- The RM10,000 rule still binds: back-filed transactions above RM10,000 need individual e-Invoices; only the remainder may be consolidated [Example 24]
- Relief does not apply if the SVDP submissions themselves fail the prescribed specifications, or if the disclosure involves fraud, wilful default or negligence [S.17.4]
If your business fell behind during its first months of implementation, the SVDP is the cheapest exit you will get — after 31 December 2027, the standard penalty regime applies to everything left undisclosed.
Your e-Invoice Compliance Action Plan
- Confirm your phase and start date — Check your FY2022 audited revenue or tax return. If RM1M–RM5M, your start date is 1 January 2026. If you commenced operations in 2023–2025 and now exceed RM1M, your start date is 1 July 2026. If below RM1M, check whether the subsidiary/related-company exception applies to your business.
- Map your transaction types — Identify which transactions require individual e-Invoices (all transactions exceeding RM10,000; automotive, construction, aviation, betting, agent payments; electricity and telecom), which can be consolidated, and which require self-billing.
- Choose your submission method — Low-volume businesses with no ERP/POS system can use the MyInvois portal free of charge. Higher-volume businesses should evaluate accounting software with an e-Invoice module or a middleware solution. See the solution comparison below.
- Implement and test — LHDN provides a sandbox testing environment at myinvois.hasil.gov.my for businesses to test their integration before going live. Always test before your compliance start date.
- Claim the MSME tax deduction — Micro, Small and Medium Enterprises (MSMEs) implementing e-Invoice can claim a tax deduction of up to RM50,000 per year of assessment for implementation costs including consultation fees and qualifying expenditure. This deduction is available from Year of Assessment 2024 to 2027. [Budget 2024; LHDN e-Invoice General FAQs, Q17]
Three Ways to Submit e-Invoices
| MyInvois Portal (free, manual) | Accounting Software Module | Middleware (e.g. JomeInvoice) | |
|---|---|---|---|
| How it works | Log in to myinvois.hasil.gov.my and enter invoice data manually | Your accounting software submits via its built-in LHDN connection | An integration layer connects your existing ERP, POS, or accounting system to MyInvois automatically |
| Setup complexity | Low — browser only | Medium — depends on software | Low to medium — native connectors or API |
| Volume suitability | Low volume, occasional invoices | Medium volume | High volume — hundreds to thousands/day |
| ERP/POS integration | None — manual re-entry required | Limited — within same software ecosystem | Native connectors for Shopify, WooCommerce, Loyverse, SalesPlay and Cloudbeds; SAP, Oracle, Dynamics 365 and other ERPs via API, CSV or SFTP |
| LHDN spec updates | Self-managed — you must keep up with spec changes | Vendor-managed | Vendor-managed — JomeInvoice updates in line with each new guideline version |
| Best for | Very small businesses, sole proprietors | Businesses already using cloud accounting | SMEs and enterprises with existing systems |
How JomeInvoice Simplifies e-Invoice Compliance
JomeInvoice is a Malaysian-built, MySTI-certified MyInvois middleware — an integration layer that connects your existing business systems directly to LHDN’s validation engine without requiring you to rebuild your invoicing process from scratch.
Instead of manually entering invoices into the MyInvois portal or rebuilding your accounting system, JomeInvoice sits between your existing software and LHDN. You continue working the way you do today — JomeInvoice handles validation, unique identifier retrieval, and audit trail management automatically.
What JomeInvoice handles for you:
- Automatic submission and validation for every invoice your system generates
- Native connectors for Shopify, WooCommerce, Loyverse, SalesPlay, and Cloudbeds — plus integration with SAP, Oracle, MS Dynamics 365, and other ERP or POS systems via API, CSV, or SFTP
- RM10,000 threshold detection — automatically flags transactions requiring individual e-Invoices
- Self-billed e-Invoice generation for applicable scenarios
- Consolidated e-Invoice preparation and submission within the 7-day deadline
- Automatic guideline updates when LHDN releases new spec versions — you stay compliant without manual intervention
JomeInvoice holds ISO 9001, ISO/IEC 20000-1, and ISO 27001 certifications, is PDPA compliant, and is MySTI certified (STI202501062).
For SMEs: Get started at sme.jomeinvoice.my — self-serve onboarding, no technical team required.
For enterprises and ERP-integrated businesses: Book a demo to see how JomeInvoice connects to your specific system.
Related Guides
Every topic in this guide has a dedicated deep-dive. Start with the guide that matches your question:
Deadlines, phases and who must comply
- Phase 4 extension to 2028: dates, relaxation period and SME action plan
- Who is exempt from e-invoice: the MSME exemption rules
- What changes with and without the grace period
- LHDN e-invoice changelog: every guideline update in one place
Rules that decide how you invoice
- The RM10,000 individual e-invoice rule explained
- Consolidated e-invoices: rules, deadlines and FAQ
- Self-billed e-invoices: every scenario that requires one
- e-Invoice requirements by industry: who cannot consolidate
- Penalties for non-compliance: fines and enforcement
- e-Invoice vs tax invoice: what actually changed
Doing the work
- How to issue an e-invoice: every task in 3 to 5 steps
- The e-invoicing compliance checklist
- TIN codes explained and how to check a TIN on MyTax
- The latest Malaysia e-invoicing FAQs answered
- Official LHDN MyInvois Portal
Sources: e-Invoice Specific Guideline v4.8 (7 Jul 2026); LHDN e-Invoice General FAQs; Income Tax Act 1967.
Get compliant once — stay compliant automatically.
JomeInvoice keeps every invoice validated with LHDN, through every guideline update.
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 e-Invoice in Malaysia?
An e-Invoice in Malaysia is a digitally structured invoice submitted to LHDN’s MyInvois platform for validation before being issued to the buyer. Unlike a PDF invoice, it is machine-readable XML or JSON, validated in real-time by LHDN, and carries a unique government-issued identifier. [e-Invoice Specific Guideline v4.8]
Who needs to issue e-Invoices?
All Malaysian businesses above their applicable revenue threshold. Phase 1–3 businesses (above RM5 million revenue) are under full enforcement. Phase 4 businesses (RM1M–RM5M) must comply from 1 January 2026. Businesses below RM1 million are generally exempt, unless they are subsidiaries or related companies of RM1 million+ entities — those must comply from 1 July 2026.
What are the penalties for not issuing e-Invoices?
Failure to issue a valid e-Invoice carries a fine of RM200–RM20,000 per invoice and up to 6 months imprisonment under Section 82C(1) of the Income Tax Act 1967. Penalties apply per transaction. The Phase 4 relaxation runs until 31 December 2027; normal rules resume in full on 1 January 2028.
What is the RM10,000 rule?
Any single transaction exceeding RM10,000 must have its own individual e-Invoice. It cannot be included in a consolidated e-Invoice. This rule applies to all businesses and all industries from 1 January 2026, with no exceptions during the relaxation period. [e-Invoice Specific Guideline v4.8, Table 3.6]
Can I use consolidated e-Invoices during the Phase 4 relaxation period?
Yes — until 31 December 2027, Phase 4 businesses may use consolidated e-Invoices with general descriptions. The RM10,000 rule remains strictly enforced. Under Section 16.2(d), taxpayers adopting the relaxation concessions may also decline buyer requests for individual e-Invoices during this period.
What is the e-Invoice SVDP?
The Special Voluntary Disclosure Programme lets businesses back-file missed or erroneous e-Invoices between 7 July 2026 and 31 December 2027 with no penalties, no prosecution, and no compliance review on the disclosed invoices. [e-Invoice Specific Guideline v4.8, Section 17]
What is a self-billed e-Invoice?
A self-billed e-Invoice is issued by the buyer on behalf of the seller. It is only permitted for specific scenarios listed in Section 8.3 of the e-Invoice Specific Guideline v4.8 — including payments to agents/distributors, foreign suppliers, and certain individual payees. You cannot issue one simply because your supplier failed to issue an e-Invoice.
Can I cancel an e-Invoice after it has been validated?
Yes, within 72 hours of LHDN validation. After 72 hours, you cannot cancel — corrections must be made using a Credit Note, Debit Note, or Refund Note e-Invoice. [LHDN e-Invoice General FAQs, Q39–Q40]
Is there a tax incentive for implementing e-Invoice?
Yes. MSMEs implementing e-Invoice can claim a tax deduction of up to RM50,000 per year of assessment for qualifying implementation expenditure. This incentive is available from Year of Assessment 2024 to 2027. [Budget 2024; LHDN e-Invoice General FAQs, Q17]
My revenue is below RM1 million. Am I fully exempt?
Generally yes — but not if your business is a subsidiary, has a non-individual shareholder, or has a related company or joint venture partner with RM1 million or more in annual revenue. In those cases, you must comply from 1 July 2026. If you are unsure, check with a qualified tax professional.
Last updated: 20 August 2026 | Written by Yinn Sheng Ng, Head of Marketing