The Inland Revenue Board of Malaysia (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, and how to get started — all updated based on the e-Invoice Specific Guideline v4.6 (5 January 2026).
In this guide:
- What is LHDN e-Invoice?
- Who must comply — and when
- How e-Invoice works: the submission process
- Document types and mandatory fields
- Special rules: consolidated and self-billed e-Invoices
- Industries that cannot consolidate
- Penalties for non-compliance
- Your compliance action plan
- Choosing a solution
- Frequently Asked Questions
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.
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 2026 | 1 January 2027 |
| New businesses (Phase 4 accommodation) | RM1M+ (commenced 2023–2025) | 1 July 2026 | 31 December 2026 | 1 January 2027 |
| Below RM1M | <RM1M | Exempt — with important caveats (see below) | ||
Source: e-Invoice Specific Guideline v4.6 (5 Jan 2026); LHDN FAQs (5 Jan 2026)
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.
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.
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 certified middleware provider.
- LHDN validates — LHDN validates the e-Invoice in near real-time (typically under two seconds). [LHDN FAQs, Q34, 5 Jan 2026]
- 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.
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 v4.6, 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), or EI00000000040 (government entities). Individual taxpayer TINs begin with the prefix “IG”. [e-Invoice Specific Guideline v4.6, Appendix 1]
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 v4.6, Section 3.6]
- Any transaction of RM10,000 or above cannot be consolidated — it must have its own individual e-Invoice, regardless of phase or relaxation status
- 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
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 v4.6. You cannot issue a self-billed e-Invoice simply because your supplier failed to issue one.
Self-billing is required for:
- Payments to agents, dealers, and distributors
- Payments to foreign suppliers (who are not required to issue Malaysian e-Invoices)
- 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 v4.6, Section 8.3]
- Profit distributions (dividends, etc.)
- Import of goods and services
- 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 v4.6:
| Industry / Transaction | Prohibited from consolidation |
|---|---|
| Automotive (sale of motor vehicles) | From each business’s e-invoice implementation start date (Phase 1 businesses: 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 ≥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 v4.6, Table 3.6
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): Full enforcement begins 1 January 2027. The 12-month relaxation period (2026) reduces enforcement risk but does not eliminate the obligation — businesses must still issue e-Invoices or consolidated e-Invoices.
In February 2026, LHDN identified over 500,000 non-compliant cases and RM14 billion in unreported income, signalling active enforcement activity. [LHDN media release, Feb 3, 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. 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 compliance review framework guide.
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 ≥RM10,000; automotive, construction, aviation, betting, agent payments; electricity and telecom), which can be consolidated, and which require self-billing.
- Choose your submission method
Businesses issuing fewer than 30 invoices a day 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 certified 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 announcement; LHDN FAQs, Q17, 5 Jan 2026]
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 — pre-built connectors |
| Volume suitability | Up to ~30 invoices/day | Medium volume | High volume — hundreds to thousands/day |
| ERP/POS integration | None — manual re-entry required | Limited — within same software ecosystem | Yes — SAP, Oracle, Dynamics 365, Odoo, Shopify, WooCommerce, Loyverse, SalesPlay |
| 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 certified LHDN 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
- Pre-built connectors for SAP, Oracle, MS Dynamics 365, Odoo, Shopify, WooCommerce, Loyverse, and SalesPlay
- 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 are always compliant without manual intervention
JomeInvoice holds ISO 9001, ISO 20001, ISO 27000, PDPA, and MySTI certifications.
For SMEs: Get started at sme.jomeinvoice.my — self-serve tutorial guided onboarding, no technical team required.
For enterprises and ERP-integrated businesses: Book a demo to see how JomeInvoice connects to your specific system.
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 confirming its compliance. [e-Invoice Specific Guideline v4.6]
Who needs to issue e-Invoices?
All Malaysian businesses above their applicable revenue threshold. Phase 1–3 businesses (above RM5 million revenue) are already 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, not per month. Phase 4 full enforcement begins 1 January 2027.
What is the RM10,000 rule?
Any single transaction of RM10,000 or above 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. See our RM10,000 rule explainer.
Can I use consolidated e-Invoices during the Phase 4 relaxation period?
Yes — during the relaxation period (1 Jan 2026 to 31 Dec 2026), Phase 4 businesses may use consolidated e-Invoices with general product/service descriptions. However, the RM10,000 rule remains strictly enforced, and buyers can still request individual e-Invoices at any time during the month.
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 v4.6 — including payments to agents/distributors, foreign suppliers, and certain individual payees. You cannot issue a self-billed e-Invoice simply because your supplier failed to issue one.
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 FAQs, Q39–Q40, 5 Jan 2026]
What are the three ways to submit e-Invoices?
Three methods are available: (1) the free MyInvois portal for manual entry — suitable for low-volume businesses; (2) direct API integration for technical teams building their own connection; (3) certified middleware such as JomeInvoice, which connects existing ERP, POS, or accounting systems to MyInvois without custom development.
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 FAQs, Q17, 5 Jan 2026]
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.
Related Guides
- e-Invoice Penalties: What SME Owners Must Know in 2026
- MSME e-Invoice Exemption Guide: Does Phase 4 Apply to You?
- Complete Guide to Self-Billed e-Invoices
- Complete Guide to Consolidated e-Invoices
- The RM10,000 e-Invoice Rule Explained
- Phase 4 e-Invoice Deadline and SME Compliance Guide
- Official LHDN MyInvois Portal
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.
Last updated: March 2026 | Author: JomeInvoice Compliance Team
Sources: e-Invoice Specific Guideline v4.6 (5 Jan 2026); LHDN e-Invoice General FAQs (5 Jan 2026); Income Tax Act 1967
