PAC Stance Spotlighted by The Edge Malaysia
The Edge Malaysia reports that the Parliament’s Public Accounts Committee (PAC) has sounded an alarm over the RM150,000 threshold for mandatory e‑invoicing implementation, warning it places undue burdens on Malaysia’s micro businesses. PAC has proposed either raising the threshold significantly or granting a permanent exemption for micro enterprises, which SME Corp defines as those earning under RM300,000 or employing fewer than five staff. The article also highlighted that since August 2024, over 283 million e‑invoices have been processed via MyInvois, with nearly 29,000 taxpayers onboarded; and that the IRB now permits simplified “consolidated e-invoicing” for micro traders—up to 12 invoices annually instead of per-transaction issuance.
The Edge Communications Sdn. Bhd. (2025, July 30). PAC says RM150,000 e‑invoicing threshold too low, calls for permanent exemption for micro businesses. The Edge Malaysia. Retrieved from The Edge Malaysia News Article
Is the RM150,000 Threshold Too Low for Micro Businesses?
Malaysia’s phased e-invoicing Malaysia mandate is designed to enhance tax transparency and reduce outstanding receivables via digital reporting. Despite this plan, PAC argues the threshold is “too low,” asserting that many micro enterprises lack the digital infrastructure and knowledge to meet compliance without hardship. Simplified reporting options—like consolidated e‑invoice submissions—help, but critics say more needs to be done to accommodate grassroots realities.
What Defines Micro Businesses in Malaysia?
Image Credit: What are the 3 Definitions of SMEs in Malaysia – WeCorporate
Micro businesses in Malaysia are categorised by SME Corp as those with annual turnover below RM300,000 or fewer than five full-time employees, regardless of sector. Most operate informally—from street vendors to home-based sellers—often lack digitized accounting or invoicing systems. Despite this, current e‑invoicing guidelines mandate compliance starting at RM150,000 in revenue, excluding many from the micro classification and compounding their transitional challenges.
Image extracted from SME Corporation Malaysia – Micro Enterprises
Why the RM150,000 Threshold Faces Criticism
PAC’s concerns stem from perceived disconnects between the threshold and the real-world circumstances of micro traders. Many micro entrepreneurs rely heavily on manual invoicing, cash-based transactions, and have limited technical literacy. Penalties may inadvertently fall on those unaware of compliance exceptions tied to corporate affiliations or online platform dynamics. For instance, some may be linked to larger parent companies or sell through online platforms like Shopee or Lazada, which can affect how revenue thresholds are calculated under IRBM’s grouping rules. Simplified options like consolidated invoicing are helpful, but the threshold still risks catching businesses unprepared for structured electronic invoice systems.
What Is a More Appropriate Threshold?
A threshold aligned with the official micro classification—RM300,000 turnover—would offer more equitable space for digital preparation. Others advocate increasing the exemption up to RM500,000, consistent with the government’s extension for MSMEs and easing implementation timelines. A tiered compliance model might better serve the transition: full exemption under RM150K, with gradual phase-in support up to RM300K or RM500K before mandating full compliance.
Timeline: Malaysia’s Phased E‑Invoicing Rollout
Malaysia’s e-invoicing implementation began on August 1, 2024, targeting businesses with revenue above RM100 million. It extended to those with RM25–100 million on January 1, 2025, and to RM5–25 million on July 1, 2025.The next phases will cover businesses earning RM1 million to RM5 million starting January 1, 2026, and RM500K to RM1 million by July 1, 2026. Six-month grace periods apply within each phase to ease adoption. Businesses with annual revenue below RM500K are currently exempt.
Read also: Why Even Malaysia Small Businesses Under RM150k Revenue Need to Jump on e-invoicing Now
Impact of Permanent Exemption on Micro Businesses
Granting permanent exemption to micro enterprises (below RM300K or RM500K) would significantly reduce compliance overhead. These small businesses could avoid investing in e‑invoice systems, digital certification, and training—saving both time and resources. Informal traders can continue using traditional invoicing methods until they are ready for formal systems.
On the downside, exempting micro firms removes them from the IRB’s visibility, potentially weakening tax transparency and risking revenue leakage. It also complicates consistency in data flows, making uniform enforcement of e‑invoicing guidelines more difficult. That said, exemptions could serve as interim relief—provided parallel support structures are in place to encourage future compliance.
How JomeInvoice Can Support Micro Businesses
Micro businesses should begin by assessing whether their revenue crosses existing thresholds—and preparing accordingly. Those affiliated with larger companies or online platforms need to evaluate exceptions. Businesses should familiarise themselves with compliance formats like XML or JSON, understand validation steps, and test systems under the MyInvois portal or API.
JomeInvoice, positioned as a user-friendly electronic invoice system, can guide users through each implementation phase. With tools like simple dashboards, template-based invoice generation, and compliance tracking, JomeInvoice eases the transition, especially for those newly required to implement e‑invoicing in Malaysia.
Conclusion: Reinforcing E‑Invoice Implementation Support for Micro Businesses
Malaysia’s move toward e-invoicing implementation marks a vital step in modernizing tax administration and improving transparency. However, PAC has raised concerns that previously discussed thresholds—such as RM150,000—may outpace the readiness of micro businesses operating at the margins. Their recommendation to raise the bar—to at least RM300,000, if not RM500,000—balances policy objectives with business realities.
At JomeInvoice, we believe many Malaysian micro businesses are not yet ready for the e‑invoicing mandate. We support PAC’s stance on raising the threshold to reduce undue burden and are committed to providing practical support—offering tools, guidance, and training to prepare small businesses as they navigate the e‑invoicing Malaysia implementation.
Why Choose JomeInvoice? Malaysia #1 Comprehensive e-invoice Software for Retail POS System Integration
As Malaysia approaches the 2025/2026 deadline for mandatory e-invoicing compliance, retail businesses must modernize their processes to stay compliant and competitive. But for many, integrating existing retail POS systems with e-invoice software—especially across sales, purchasing, and self-billing—remains a significant challenge.
This is where JomeInvoice steps in.
Proudly developed in Malaysia, JomeInvoice is the first comprehensive middleware solution purpose-built to unify disconnected systems and enable seamless, end-to-end e-invoice software for retail POS system integration.
🔄 JomeInvoice: Bridging the Gaps Between POS, Purchasing, & Self-Billing
Most POS system software used in retail shops only handles sales transactions. However, full compliance with LHDN’s e-invoicing framework requires integrating purchasing (raw materials, rent, utilities) and self-billing (staff claims, overtime, medical reimbursements).
JomeInvoice solves this by acting as the central bridge between your POS system, accounting software, payroll systems, and more, ensuring all components of your business operations are tracked, synced, and submitted in a unified e-invoice log.
🧩 POS System Compatibility? Not a Problem with JomeInvoice
Still using legacy or offline POS systems built in the early 2000s? Locked into a branded ecosystem like H&M or Padini, where updates require central corporate approval?
JomeInvoice allows you to stay compliant without overhauling your tech stack. It can:
- Convert spreadsheets or data exports into LHDN-compliant formats
- Automatically sync purchasing and expense data alongside sales
- Seamlessly connect with accounting tools like SQL, QuickBooks, and AutoCount—even if they aren’t natively integrated with your POS
💰 Reduce Integration Costs & Boost ROI with Middleware
Custom development to build POS-to-eInvoice links can be costly and time-consuming. JomeInvoice lowers these barriers by offering:
- Pre-built integrations for popular accounting and POS systems
- Scalable architecture that grows with your retail business
- Shared infrastructure and expert support—helping you cut both upfront and maintenance costs
You get faster invoice validation, reduced human error, and complete LHDN compliance—all with minimal disruption.
☁️ Cloud-Ready for Modern Retail Environments
Already running a cloud-based POS system for retail shop operations? JomeInvoice enhances your compliance capabilities even further:
- Real-time data syncing from POS to accounting to LHDN
- One dashboard for Sales, Purchasing, and Self-Billing activities
- Compatibility with HR, ERP, WMS, and payroll systems
For international brands operating in Malaysia, JomeInvoice makes local compliance as easy as connecting to a secure middleware gateway.
✅ Get Future-Ready with JomeInvoice
With JomeInvoice, Malaysia’s retail businesses now have a turnkey e-invoicing solution that connects the dots between your POS system, finance, HR, and compliance workflows—without replacing everything you already use.
Whether you’re a single-store operator or a nationwide brand, JomeInvoice makes it simple, affordable, and seamless to stay compliant with Malaysia’s 2025 e-invoicing mandate.
👉 Explore the full solution at jomeinvoice.my and get your business ready for the future of digital compliance.
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
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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!