e-Invoice Malaysia Checker
From 1 September 2026, businesses with annual turnover below RM3 million are exempt from LHDN e-invoicing, unless a corporate shareholder, holding company, related company or joint venture has RM3 million or more. Larger businesses started in phases from 1 August 2024 to 1 January 2026, with no prosecution until 31 December 2027 for 2026 start dates. Answer four questions to see your date.
Your result
Turnover below RM3 million with no group link of RM3 million or more: you are exempt, including from self-billed e-invoices. Normal invoices and receipts remain valid. If you already issue e-invoices, you may stop at once without applying.
What to do next
- Keep issuing normal invoices and receipts (use our free Invoice Generator).
- Check turnover each year: if it reaches RM3 million in a YA, you must start on 1 January of the second year after that YA.
- The exemption is lost if you gain a corporate shareholder, holding company, related company or joint venture with turnover of RM3 million or more.
Advertisement
e-Invoice phases and relaxation periods
| Group | YA2022 annual turnover | Start date | Relaxation until |
|---|---|---|---|
| Phase 1 | Over RM100 million | 1 August 2024 | 31 January 2025 |
| Phase 2 | Over RM25 million to RM100 million | 1 January 2025 | 30 June 2025 |
| Phase 3 | Over RM5 million to RM25 million | 1 July 2025 | 31 December 2025 |
| Phase 4 | RM3 million to RM5 million | 1 January 2026 | 31 December 2027 |
| Concessionary | Below RM3 million but not exempt, or reached RM3 million in YA2023 to YA2025 | 1 July 2026 | 31 December 2027 |
| Exempt | Below RM3 million, no group link of RM3 million or more | None (start 1 January of the second year after the YA that reaches RM3 million) | – |
How the exemption threshold changed
| Threshold | When |
|---|---|
| RM150,000 | Original plan |
| RM500,000 | June 2025 |
| RM1 million | December 2025 |
| RM3 million | From 1 September 2026 (current) |
The effective date of the RM3 million threshold is reported as 1 September 2026 (LHDN media release, announced in the Prime Minister's National Day address); the guideline itself was published on 30 August 2026.
Examples
- Kedai runcit, RM400,000 in YA2022, sole proprietor: exempt. If revenue reaches RM3.1 million in YA2027, e-invoicing starts on 1 January 2029.
- Subsidiary with RM400,000 revenue whose parent already issues e-invoices: not exempt, starts on 1 July 2026, relaxation until 31 December 2027.
- Company with RM4 million in YA2022: Phase 4, started on 1 January 2026, no prosecution until 31 December 2027.
How the checker decides
- Phase: businesses operating in 2022 with YA2022 turnover of RM3 million or more fall into Phases 1 to 4 by turnover.
- Exemption: below RM3 million, the business is exempt unless the group-link test applies (section 1.6.10 of the e-Invoice Guideline).
- Growth: reaching RM3 million in YA2023 to YA2025 means 1 July 2026; reaching it in YA2026 or later means 1 January of the second year after that YA.
- Relaxation: the end of the interim relaxation period is shown for each start date stated by LHDN.
Advertisement
What counts as an e-invoice
- An e-invoice is submitted to LHDN's MyInvois system (the free MyInvois Portal or software through the API) and validated with a unique ID and QR code. A PDF or paper invoice is not an e-invoice.
- Buyers who do not ask for an e-invoice can be grouped into one consolidated e-invoice a month, submitted within 7 days after month-end.
- A validated e-invoice can be cancelled within 72 hours; after that, use a credit or debit note.
- Exempt? Keep making normal invoices and quotations with the free Invoice Generator.
Sources
- LHDN: e-Invoice FAQs (updated 4 September 2026)
- LHDN MyInvois SDK: FAQ and cancelling a document
- VATupdate: RM3 million exemption threshold (8 September 2026)
Disclaimer: A guide based on LHDN's published FAQ, not tax advice. Group structures and unusual year-ends can change the answer; confirm with LHDN or your tax agent, and check the latest e-Invoice Guideline before relying on a date.
Frequently asked questions
Who is exempt from e-invoice in Malaysia?
From 1 September 2026, businesses with annual turnover or revenue below RM3 million are exempt from LHDN e-invoicing, including self-billed e-invoices. The exemption does not apply if the business has a non-individual shareholder, holding company, related company or joint venture with turnover of RM3 million or more.
When must my business start e-invoicing?
It depends on your YA2022 turnover: over RM100 million from 1 August 2024, over RM25 million from 1 January 2025, over RM5 million from 1 July 2025, and RM3 million to RM5 million from 1 January 2026. Businesses below RM3 million that cannot be exempted, or that reached RM3 million in YA2023 to YA2025, start on 1 July 2026.
What if my turnover reaches RM3 million later?
If your turnover reaches RM3 million in YA2026 or a later year, you must start on 1 January of the second year after that YA. For example, a business that reaches RM3 million in YA2026 starts on 1 January 2028, and one that reaches it in YA2027 starts on 1 January 2029.
Is there a grace period with no penalty?
Yes. LHDN's interim relaxation period runs until 31 December 2027 for businesses with start dates of 1 January 2026 or 1 July 2026. Earlier phases had six months: to 31 January 2025, 30 June 2025 and 31 December 2025.
I already issue e-invoices but my turnover is below RM3 million. Can I stop?
Yes, if you meet the exemption criteria. LHDN's FAQ says no application or approval is needed: you may stop issuing e-invoices at once, or continue voluntarily. You also do not need to join the e-Invoice Special Voluntary Disclosure Programme for missed e-invoices.
What is the penalty for not issuing an e-invoice?
Failing to issue an e-invoice is an offence under section 120(1)(d) of the Income Tax Act 1967, with a fine of RM200 to RM20,000, imprisonment of up to 6 months, or both, for each offence. LHDN does not prosecute during the interim relaxation period if the relaxation rules are followed.
Can I still use a normal invoice?
Exempt businesses can keep issuing normal invoices and receipts, and they remain valid. Businesses in scope must issue e-invoices through MyInvois; buyers who do not ask for one can be covered by a consolidated e-invoice each month, submitted within 7 days after month-end.
Share this calculator
Advertisement