: As of 5 June 2025, Malaysia’s Inland Revenue Board (LHDN) has raised the e-Invoicing threshold to RM500,000 in annual revenue. Businesses with revenue below this threshold are exempt from mandatory e-Invoicing, unless they fall under specific categories or conditions that still require adoption.
1. E-invoicing Malaysia for Corporate Shareholder Involvement
Companies with corporate shareholders face specific e-invoicing requirements. If a business with revenue below RM500,000 has corporate shareholders and those shareholders have annual revenue exceeding RM500,000, the company must implement e-invoicing.
Example:
- Oyen SB has a revenue of RM500,000 and owns a 20% stake in HaHeng Cafe SB, a cafe that generates RM50,000 annually. Though HaHeng Cafe SB’s revenue is under RM500,000, its corporate shareholder with revenue exceeding RM500,000 triggers the e-invoicing requirement.
This requirement ensures that businesses connected to larger corporate entities maintain transparency and consistency in invoicing practices.
2. E-invoicing Malaysia for Subsidiary of a Higher Revenue Parent Company
Subsidiaries of larger companies are also required to implement e-invoicing if their parent company’s revenue is exceeding RM500,000. Even if the subsidiary itself generates below RM500,000, it must comply with the e-invoicing regulations.
Example:
- Ong Ah SB, a company with an annual revenue of RM888,000, holds a 51% stake in Huat Ah Kuih SB, a bakery generating RM88,000. As the parent company’s revenue exceeds RM500,000, the subsidiary must also comply with e-invoicing.
This provision aims to prevent revenue fragmentation across related entities, ensuring accurate reporting of financial activities within a corporate group.
3. Related or Joint Venture Companies
E-Invoicing is required by LHDN for companies within related-company or joint venture (JV) arrangements. If one related company’s revenue exceeds RM500,000, all companies within the structure must adopt e-Invoicing, regardless of their individual revenue. Example:
- Fam Fesh SB, with annual revenue of RM50 million, has a related company, Chajee SB, with RM50,000 in revenue. Despite Chajee SB’s revenue being below RM500,000, it is still required to issue e-invoices because of its connection to Fam Fesh SB.
This rule ensures comprehensive financial transparency among companies with shared ownership or close financial relationships.
4. Sole Proprietorship e-Invoice with Multiple Businesses
For sole proprietorships with multiple businesses, the total annual gross revenue across all businesses is considered when assessing the RM500,000 mandatory e-invoicing threshold. If the combined revenue from all businesses exceeds RM500,000, each business under the sole proprietorship is required to issue e-invoices.
Example:
- A sole proprietor operates three businesses: Ga Taomo Barber (RM200,000), Zo Binpao Bakery (RM150,000), and Pao Kopi Cafe (RM200,000). Together, these businesses generate RM550,000, surpassing the RM500,000 threshold. Therefore, all three businesses must implement e-invoicing
This requirement ensures accurate and consistent revenue reporting across all business activities of a single proprietor.
5. E-invoicing Exemptions for Businesses
Businesses with revenue under RM500,000 and no relevant affiliations are exempt from the e-invoicing requirement. Additionally, sole proprietorships with total revenue below RM500,000 across all businesses are also exempt.
When Small Businesses Need to Start e-invoicing in Malaysia
If a business meets any of the conditions listed above, it must begin implementing e-invoicing according to IRBM’s phased implementation schedule . Companies with annual turnover above RM500,000 should prepare by understanding the technical and operational steps involved in transitioning to an e-invoice system. LHDN will provide more guidance on the detailed rollout timeline and compliance requirements to help businesses comply with the digital invoicing system.
Are You Ready for e-invoicing? Hidden Triggers for Small Businesses with Revenue Below RM500,000
The latest LHDN e-invoice updates emphasize that e-invoicing in Malaysia is not solely for high-revenue companies. Businesses with revenue below RM500,000 but affiliated with larger entities or part of certain ownership structures may still be required to adopt e-invoicing. This regulation enhances tax compliance and provides LHDN with a clearer view of interconnected financial activities. For companies unsure of their e-invoicing Malaysia obligations, consulting a tax advisor or reviewing the official LHDN guidelines can provide clarity and help ensure compliance.
Explore the Best e-invoicing Software Malaysia – JomeInvoice
JomeInvoice is the top choice for integrating e-invoicing Software solutions in Malaysia. When it comes to integrating the best e-invoicing software solutions for both small and large enterprises in Malaysia, JomeInvoice has quickly become a standout choice, positioning itself as a top middleware e-invoicing platform in the country. With its user-friendly features and robust system compatibility, it’s no surprise that many businesses are turning to JomeInvoice for a seamless transition to the LHDN e-invoice compliance.
Why JomeInvoice is the Best e-invoicing Software Provider for SMEs and Large Enterprises in Malaysia:
JomeInvoice stands out as the most user-friendly and comprehensive e-invoicing software solution, offering the perfect balance of flexibility, compliance, and support for both SMEs and large enterprises in Malaysia. Whether you are transitioning into the LHDN e-invoicing mandate or looking to streamline your current invoicing process, JomeInvoice provides everything you need—from free trials to ongoing updates and local support.
- Flexible System Compatibility
Worried about changing systems due to e-invoice implementation? JomeInvoice offers seamless integration with popular systems such as SAP ECC6, S4 Hana, Sage300, MS365, Netsuite, Odoo, Xero & etc. This flexibility makes it ideal for businesses of all sizes—whether you’re an SME or a large enterprise in Malaysia, JomeInvoice adapts to your current operations without a hitch, supporting your existing systems while allowing you to add new ones as your business grows.
- Full Compliance with LHDN e-Invoicing Regulations
Compliance is key, and JomeInvoice ensures that your business meets all LHDN e-invoicing guidelines. ISO-certified and fully PDPA-compliant, JomeInvoice offers a secure, worry-free invoicing process that keeps you aligned with Malaysia’s regulatory standards.
- Trusted by Leading Businesses
Over 60+ major companies, including those in Phase 1 of Malaysia e-invoicing compliance, rely on JomeInvoice for their invoicing needs. The platform is proven to handle large-scale, complex transactions seamlessly, making it a trusted choice across industries.
- Free Upgrades, Training, and Dedicated Support
JomeInvoice keeps your business up to date with automatic upgrades that maintain LHDN compliance. Plus, free training and access to a dedicated Malaysian support team ensure your staff can easily adapt to the platform. With cloud server capabilities, you’ll also benefit from secure, flexible invoicing solutions.
- Backed by a Listed Company
JomeInvoice is not just reliable but also backed by a publicly listed company on Bursa Malaysia. This adds an extra layer of trust and assurance for businesses looking to invest in long-term solutions.
Ready to streamline your e-invoicing processes?
Contact JomeInvoice today and let our dedicated team help your business stay ahead with compliance and efficiency.
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
- Social Media:
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Don’t wait—schedule a free e-invoice service consultation today and see why JomeInvoice is the top choice for businesses nationwide!