TL;DR
LHDN e-Invoice in Malaysia is a mandatory digital invoicing system where all invoices must be submitted to LHDN (Inland Revenue Board of Malaysia / IRBM) via MyInvois for validation before being issued to buyers. Phase 4 businesses with RM1M–RM5M in annual revenue must comply from 1 January 2026; businesses below RM1M are generally exempt unless linked to a larger entity. Non-compliance carries fines of RM200–RM20,000 per invoice from 1 January 2027.
LHDN e-Invoice is the government-mandated digital invoicing system requiring Malaysian businesses to issue and receive invoices through LHDN’s MyInvois platform. Every invoice must be validated by LHDN before it reaches the buyer — replacing the traditional tax invoice process.
This guide covers everything:
- who must comply
- all five implementation phases
- what information an e-invoice must contain
- how to submit
- the rules around self-billed
- consolidated invoices
- what happens if you don’t comply
What Is e-Invoice in Malaysia?
An e-invoice in Malaysia is a digitally structured invoice submitted to LHDN’s MyInvois system, validated in real time, and returned with a unique LHDN-issued UUID (Unique Universal ID) and QR code. An invoice is only considered valid once it has been validated by LHDN — an invoice sent directly to a buyer without MyInvois validation does not meet legal requirements.
The system replaces traditional tax invoices and receipts for all mandated businesses. It applies to business-to-business (B2B), business-to-consumer (B2C), and business-to-government (B2G) transactions.
How the e-Invoice Process Works
- Seller creates the invoice — in their POS, ERP, accounting system, or the MyInvois portal
- Invoice is submitted to MyInvois — either via the portal (manual) or API (automated through middleware like JomeInvoice)
- LHDN validates — within seconds; validation checks format, TIN codes, 55+ mandatory fields
- LHDN returns UUID + QR code — this is your proof of validation; attach it to the invoice
- Seller delivers to buyer — share the validated invoice via email, printed copy, or in-app
- 72-hour window to cancel — if an error is found, the invoice can be cancelled within 72 hours of validation
Who Must Issue e-Invoices in Malaysia?
The mandate applies to all taxpayers carrying on business in Malaysia — including individuals, companies, partnerships, limited liability partnerships, and foreign entities with a Malaysian presence — above the revenue threshold for their implementation phase.
Exemptions
Businesses with annual turnover below RM1 million are generally exempt from mandatory e-invoicing. However, the exemption does not apply if:
- The business has a non-individual shareholder(s) (or equivalent) with annual turnover of RM1 million or more
- The business is a subsidiary of a holding company with RM1 million or more turnover
- The business has a related company or joint-venture partner with RM1 million or more turnover
Revenue is assessed based on audited financial statements for Financial Year 2022.
Once a business becomes mandated, it cannot re-qualify for exemption later — even if revenue subsequently falls below the threshold.
Example: If your company made RM 6 million in 2022, but dropped to make less than RM1 million in 2023, you still fall under Phase 3, because your 2022 revenue was above the RM5 million threshold.
The 5 Implementation Phases — Timeline and Thresholds
LHDN is rolling out e-invoice requirements in five phases based on annual revenue. Each phase has a mandatory start date, a relaxation period (where non-compliance carries reduced enforcement risk), and a full enforcement date.
| Phase | Annual Revenue | Mandatory Start | Relaxation Period | Full Enforcement |
|---|---|---|---|---|
| Phase 1 | Above RM100 million | 1 August 2024 | Ended 31 Jan 2025 | Active |
| Phase 2 | RM25M – RM100M | 1 January 2025 | Ended 30 Jun 2025 | Active |
| Phase 3 | RM5M – RM25M | 1 July 2025 | Ended 31 Dec 2025 | Active |
| Phase 4 | RM1M – RM5M | 1 January 2026 | Until 31 Dec 2026 | 1 January 2027 |
| Phase 5 | Below RM1M | Exempted | TBC | TBC |
For new businesses registered between 2023 and 2025, with annual turnover more than RM1M, your mandatory start date is 1 July 2026, with 6 months relaxation period until 31 December 2026, full enforcement will start 1 January 2027.
Revenue basis: Financial Year 2022 audited statements. Source: e-Invoice Specific Guideline v4.6 (5 Jan 2026), subject to LHDN updates.
If you are currently exempted but your business grows and your annual turnover crosses the RM 1 million mark in 2026 or a later year, you don’t have to scramble immediately. LHDN gives you a grace period. You will be required to start e-invoicing on January 1 of the second year after the assessment year you crossed the threshold.
Many businesses still misunderstood the extension of Phase 4 relaxation period (grace period) as mandatory deadline extended – which is not accurate.
What “Relaxation Period” Means for Phase 4 Businesses
During the 2026 relaxation period, Phase 4 businesses may use general descriptions (e.g., “Monthly services” instead of itemised line items) and may still issue consolidated e-invoices for all activities and transactions, including the industries or high-value activities (like the >RM10,000 rule) that are normally excluded. After relaxation period, non-compliance will result in monetary penalty and/or jail.
Mandatory Fields on a Malaysian e-Invoice
Every e-invoice submitted to MyInvois must contain the following fields. Missing or incorrect fields will cause the submission to fail validation.
| Category | Required Fields |
|---|---|
| Supplier (Seller) | Legal name, TIN, registration number (BRN/NRIC), address, MSIC code, e-mail, contact |
| Buyer | Name, TIN or General TIN code, registration number, address, contact |
| Invoice Details | Invoice date and time, invoice number, invoice type code, currency, exchange rate (if foreign) |
| Line Items | Description, quantity, unit price, discount, subtotal per line |
| Tax | Tax type (SST/GST/none), tax rate, tax amount per line and total |
| Totals | Total excluding tax, total tax, total including tax, rounding adjustment |
| Payment | Payment mode (optional but recommended for B2B) |
TIN Codes for General Public (B2C) Transactions
For B2C transactions where the buyer does not provide their TIN, use LHDN’s General TIN codes:
| Code | Use |
|---|---|
| EI00000000010 | General public (consolidated B2C, domestic buyer without TIN) |
| EI00000000020 | Foreign buyer without Malaysian TIN |
| EI00000000030 | Foreign supplier without Malaysian TIN (used in self-billed invoices) |
| EI00000000040 | Government entity buyer |
Individual TIN numbers begin with the prefix “IG”. For more detail on TIN codes, see the complete TIN code guide for Malaysia.
How to Submit e-Invoices: 3 Methods Explained
Businesses can submit invoices to MyInvois using three methods. The right method depends on your invoice volume and existing systems.
Method 1: MyInvois Portal (Manual)
The MyInvois Portal is LHDN’s free web interface at myinvois.hasil.gov.my . It allows manual entry of individual invoices and consolidated e-invoices. Best for businesses issuing fewer than 30 invoices per day with no POS or ERP system.
Method 2: MyInvois API (Direct Integration)
Businesses with in-house IT capability can integrate directly with the MyInvois API. This requires technical development to connect your accounting system or ERP to LHDN’s API endpoints. Once integrated, invoices are submitted programmatically without manual entry.
Method 3: Certified Middleware (Recommended for High Volume)
Middleware providers — also called e-invoice service providers — connect your existing systems (POS, ERP, accounting software, e-commerce) to MyInvois through a pre-built integration layer. This is the lowest-effort path for businesses that need automated submission without in-house development. For a detailed comparison of these three methods, read the MyInvois vs API vs middleware comparison.
Self-Billed e-Invoices: When the Buyer Issues the Invoice
A self-billed e-invoice is an invoice issued by the buyer on behalf of the seller. Self-billing is only permitted for specific transaction scenarios defined in Section 8.3 of the e-Invoice Specific Guideline. It is not a general alternative for suppliers who fail to issue invoices.
Permitted Self-Billing Scenarios
- Payments to agents, dealers, and distributors
- Payments to foreign suppliers without a Malaysian TIN
- Payments to individuals who are not in business (e.g., freelancers)
- E-commerce platform payments to sellers
- Dividend, interest, and other financial payments
- Import of goods and services
For a full list of self-billed scenarios and step-by-step guidance, read the 10 self-billed e-invoice scenarios guide.
Consolidated e-Invoices: When One Invoice Covers Many Transactions
A consolidated e-invoice is a single e-invoice that summarises multiple transactions within a calendar month. Businesses may use consolidated e-invoicing for B2C and some B2B transactions where the buyer does not request an individual invoice.
Key Rules for Consolidated e-Invoices
- Deadline: Consolidated e-invoices must be submitted to MyInvois within 7 calendar days after the end of the month they cover
- RM10,000 rule: Any individual transaction of RM10,000 or above cannot be consolidated — it requires its own individual e-invoice
- Industries excluded from consolidation (from 1 Jan 2026): Automotive, aviation, construction, betting/gaming, agent payments, electricity, and telecommunications
- Luxury goods: Consolidation remains allowed for luxury goods until further LHDN notice
For full rules and industry-specific guidance, read the consolidated e-invoice exemption update.
Penalties for Non-Compliance
LHDN is in a relaxation period for Phase 4 businesses during 2026. Full enforcement begins 1 January 2027. Under Section 82C(1) of the Income Tax Act 1967 and Paragraph 120(1)(d), failure to issue a compliant e-invoice carries:
| Offence | Penalty |
|---|---|
| Failure to issue e-invoice per transaction | RM200 – RM20,000 fine per invoice, or up to 6 months imprisonment, or both |
| Failure to issue within the required timeframe | Same as above — per invoice |
| Incorrect or fraudulent e-invoice details | Additional penalties under ITA 1967 and relevant tax legislation |
Penalties apply per invoice — not per month or per period. Businesses with high transaction volumes face compounding risk. For a detailed breakdown of all penalty scenarios, see our LHDN e-invoice penalty guide.
How JomeInvoice Helps You Comply
JomeInvoice is a certified LHDN e-invoice middleware that automates the entire submission process for Malaysian businesses of all sizes. Whether you’re running a single retail outlet on Loyverse or an enterprise on SAP, JomeInvoice connects your existing system to MyInvois without replacing your current workflow.
JomeInvoice handles individual e-invoices, self-billed invoices, and consolidated monthly submissions — including automated QR code delivery to buyers and a full audit trail of every LHDN-validated UUID.
- Integrations: SAP · Oracle · MS Dynamics 365 · Odoo · Shopify · WooCommerce · Loyverse · SalesPlay · and many more
- Certifications: ISO 9001 · ISO 20001 · ISO 27001 · PDPA · MySTI
Book a free demo to see how JomeInvoice connects to your systems and what compliance looks like on day one.
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 system for validation. Every invoice must receive an LHDN-issued UUID and QR code before it is considered legally valid and issued to the buyer.
Who needs to issue e-invoices in Malaysia?
All Malaysian businesses above the revenue threshold for their implementation phase. Phase 4 (RM1M–RM5M revenue) started 1 January 2026. Businesses below RM1M are generally exempt, unless linked to a larger entity through shareholding, subsidiary, or related-company relationships.
When does e-invoicing become mandatory in Malaysia?
Mandatory start dates: Phase 1 (above RM100M) — August 2024. Phase 2 (RM25M–RM100M) — January 2025. Phase 3 (RM5M–RM25M) — July 2025. Phase 4 (RM1M–RM5M) — January 2026. Full enforcement for Phase 4 begins January 2027.
What are the penalties for not issuing e-invoices in Malaysia?
Under Section 82C(1) of the Income Tax Act 1967, failure to issue a compliant e-invoice carries a fine of RM200–RM20,000 per invoice, up to 6 months imprisonment, or both. Penalties apply per invoice — not per period.
How do I submit an e-invoice in Malaysia?
Three methods: (1) MyInvois Portal — free, manual, suitable for low volume. (2) Direct API integration — for businesses with in-house development capability. (3) Certified middleware — automated, connects your existing POS/ERP/accounting system to MyInvois without custom development.
What is the difference between self-billed and consolidated e-invoice?
A self-billed e-invoice is issued by the buyer on behalf of the seller for specific permitted scenarios. A consolidated e-invoice is a single invoice covering multiple B2C or B2B transactions in a calendar month, submitted within 7 days after month-end.
Is below RM1 million revenue fully exempt from e-invoicing?
Generally yes — but not if your business is a subsidiary of a RM1M+ company, has a non-individual shareholder with RM1M+ turnover, or has a related company or JV partner above the threshold. Check your corporate structure against the MSME exemption rules in Guideline v4.6.
Last updated: March 2026 | Based on: e-Invoice Specific Guideline v4.6 (5 Jan 2026)
