E-INVOICE,
WITHOUT THE
PANIC.
Which phase you are in, whether the exemption still covers you, and the three ways to comply. No scare tactics. The dates are the dates.
Two Rules People Miss
Exempt is not permanent.
Cross the threshold once and you are in for good, even if turnover falls back afterwards.
A grace period is not an exemption.
You still have to issue e-invoices during it. The grace period waives the penalty, not the obligation.
Figures checked September 2026 (HASiL guideline v4.8)
Which Phase Are You In?
Find your annual turnover. That is your phase, and that is your date. Or type it into the checker and let it find you.
Interactive Tool
E-Invoice Compliance Deadline Checker
Enter your annual turnover (your total sales for the year, not your profit) in RM millions. For example, type 15 for RM 15 million, or 0.5 for RM 500,000.
The threshold rose to RM 3 million on 1 September 2026. What changed, what did not, and what to do if you already started is in our write-up of the new rule. The RM 10,000 single-transaction rule and the grace period are covered in the original guide.
Phase 1
Above RM 100 million annual turnover
Mandatory from 1 August 2024
Phase 2
RM 25 million to RM 100 million annual turnover
Mandatory from 1 January 2025
Phase 3
RM 5 million to RM 25 million annual turnover
Mandatory from 1 July 2025
Phase 4 (grace period)
RM 3 million to RM 5 million annual turnover
Mandatory from 1 January 2026
Penalty-free grace period. You must issue e-invoices, but LHDN is not enforcing penalties yet.
Phase 4 (full enforcement)
RM 3 million to RM 5 million annual turnover
Mandatory from 1 January 2028
The penalty-free grace period ends 31 December 2027. Penalties can apply from this date.
Currently exempt
Below RM 3 million annual turnover
With caveats*
*Exempt since 1 September 2026, with conditions. See the rules below. Between RM 1 million and RM 3 million and already issuing? Keep issuing until LHDN says otherwise.
The Fine Print
Most businesses that think they are exempt have read the turnover figure and stopped there. These are the rules that catch people out.
The exemption threshold is RM 3 million, not RM 1 million
On 30 August 2026 the Prime Minister raised the exemption threshold from RM 1 million to RM 3 million in annual turnover, effective 1 September 2026. It is the second raise in a year: RM 500,000 became RM 1 million on 1 January 2026. LHDN's own words: MSMEs with an annual income or sales of less than RM 3 million will not be required to implement e-invoicing. If you are working off the RM 1 million figure, you may think you are in scope when you are exempt.
The threshold looks back to 2023, 2024, and 2025, not just this year
Your exemption is not judged only on this year's turnover. LHDN looks at your turnover for the 2023, 2024, and 2025 assessment years. If your sales reached or passed RM 3 million in any one of those years, you are in scope, even if business has been quieter since.
Once you are mandated, you stay mandated
The sting in the tail: "once in, always in." You cannot drop back to exempt in a later year just because your revenue dipped below RM 3 million again. One open question: that rule has only ever been applied to revenue dipping, never to the threshold itself being raised. As of September 2026 LHDN has not said whether a business between RM 1 million and RM 3 million that went live under the old rule may stop. Keep issuing until it does.
A bigger company above or beside you can cancel your exemption
Even if your own turnover is well under RM 3 million, you lose the exemption if you have a corporate shareholder, a holding company, a related company, or a joint-venture partner with annual turnover of RM 3 million or more. This is about corporate relationships, not personal ones: one person owning two separate businesses, or a shared director, does not make the companies related for this purpose. What counts is any corporate shareholder, a holding company, a related company (the Promotion of Investments Act definition, broadly 20 percent of the shares), or a joint-venture partner, where that company itself turns over RM 3 million or more. That is section 1.6.10 of the HASiL guideline, added in version 4.8.
New businesses get a later start date, not indefinite exemption
A new business that stays under RM 3 million and is not tied to a larger company is exempt for now. But if it is connected to a bigger group, or it crosses RM 3 million, it comes into scope on 1 July 2026, or, for businesses that start in 2026 or later, on their commencement date if that falls after 1 July 2026.
One large transaction can be caught regardless of any grace period
Any single transaction of RM 10,000 or more has to be issued as its own e-invoice straight away. A grace period or an exemption on your general turnover does not cover an occasional large sale above that amount.
Three Ways To Comply
The cheapest route that actually works for your invoice volume is the right one. We will say so even when it is the one we do not get paid for.
Manual Submission Through the MyInvois Portal
Very small businesses issuing under about 20 invoices a month
Cost
Free, no technology investment
Limits
- You key in and submit each e-invoice yourself, one at a time, directly on LHDN's portal
- Beyond roughly 20 invoices a month, it becomes a grind. You create the invoice, then retype it into the portal.
Standalone E-Invoice Tool
Businesses that are happy with their current systems and just want to bolt on e-invoice capability
Cost
From RM 7,000 for implementation, plus an ongoing subscription
Limits
- Plugs into your existing accounting software and handles the MyInvois submission for you
- Solves the compliance requirement only. Everything else about how the business runs stays the same.
ERP-Integrated E-Invoicing
Businesses already using, or planning to implement, an ERP
Cost
From RM 15,000 as part of a foundation ERP setup
Limits
- Your ERP produces compliant e-invoices automatically as part of the normal sales process, no separate tool or double entry
- The most efficient route over the long run, since compliance happens quietly in the background as a byproduct of your normal day
Check Yourself
Work through this before you call anyone, us included. Most of it you can answer from your own records in an afternoon.
- 01
Confirm your compliance deadline
Check your annual turnover, not profit, against the phase thresholds, then mark the date with a few weeks of buffer before it.
- 02
Register on the MyInvois Portal
You need your company's TIN to register, whichever compliance path you choose.
- 03
Map how invoices actually get made today
Note who creates each invoice, what source document they work from, what tool they use, and how it reaches the client.
- 04
Check recent invoices against the required fields
Go through 10 recent invoices and see which required fields (seller and buyer TIN, BRN, line items, and tax amounts) are missing.
- 05
Start collecting customer TINs now
This is the biggest data gap for most SMEs. Ask for TINs on every new order and renewal, rather than chasing them later.
- 06
Ask your accounting software vendor about MyInvois
Find out if it already integrates with MyInvois, whether that is included in your subscription, and if not, whether it is on their roadmap.
- 07
Choose your compliance path
Decide between the manual portal, a standalone e-invoice tool, or ERP-integrated invoicing, based on your volume, budget, and deadline.
- 08
Confirm credit notes and debit notes are covered
These have to comply too, and each one references the original e-invoice's unique identifier, so check your chosen solution handles them.
- 09
Train whoever creates invoices
A short, hands-on session covering how to create, submit, and correct a rejected e-invoice is usually enough.
- 10
Run a short parallel test before go-live
Issue old and new e-invoices side by side for a week or two, and compare the outputs before switching over fully.
Where these figures come from
We are engineers, not your tax agent.
Every date and threshold on this page comes from LHDN's own implementation timeline and FAQ, checked September 2026 (HASiL guideline v4.8). The rules have already been revised more than once, so confirm your own position with LHDN or your tax agent before you act on it.
We handle the systems half: getting invoices out of your ERP and into MyInvois in the right format, without your team retyping anything.
Sort The Systems Half.
Tell us what you invoice from today and roughly how many you issue a month. That is enough for us to tell you which of the three routes fits.