Here's which businesses are covered as of 2026, and what changes in a billing flow once every invoice has to be validated through MyInvois.
The short version: Malaysia's e-Invoice rollout is complete as of January 2026 — since 1 September 2026, every business at or above the RM3 million exemption threshold needs a working MyInvois submission path.
The phase timeline, as it stands in 2026
| Phase | Effective date | Annual turnover (FY2022 basis) |
|---|---|---|
| Phase 1 | 1 August 2024 | Above RM100 million |
| Phase 2 | 1 January 2025 | RM25 million – RM100 million |
| Phase 3 | 1 July 2025 | RM5 million – RM25 million |
| Phase 4 | 1 January 2026 | Up to RM5 million (relaxation period to 31 Dec 2027) |
The exemption threshold was raised from RM500,000 to RM1 million on 1 January 2026, and then to RM3 million with effect from 1 September 2026 (HASiL media release, 30 August 2026).
Businesses below RM3 million are not required to implement e-invoicing, but the exemption does not apply if a non-individual shareholder, holding company, related company or joint venture has turnover of at least RM3 million.
- Phase 4 businesses have an interim relaxation period running to 31 December 2027 (e-Invoice Specific Guideline, Table 16.1), but the submission requirement itself is already live. Confirm your specific obligations directly against LHDN's published MyInvois guidance (opens in a new tab) — this is factual context, not tax advice, and dates and thresholds are set by LHDN.
- Last checked: 19 October 2026 against LHDN's e-Invoice implementation timeline (opens in a new tab).
Why a new billing system is often not needed
Many businesses hear "mandatory e-invoicing" and assume they need new accounting or billing software. Often they don't.
MyInvois is where invoices are submitted for validation. What changes is the step between the system that already creates your quote, order or invoice and LHDN's platform, so the same figures are not typed into a separate portal by hand.
So the first question for your current software vendor is whether it already supports MyInvois submission.
What changes in the billing flow
An invoice already gets created somewhere in your existing process — a POS system, an accounting package, an order system.
Once e-invoicing applies, the required fields (buyer details, line items, tax treatment) go to MyInvois (opens in a new tab) for validation, and the validated invoice, or any rejection that needs correcting, comes back before the invoice is shared with the buyer.
LHDN offers two routes: the free MyInvois Portal for manual, lower-volume submission, and an API for sending invoices straight from your accounting, billing or ERP system. The e-invoice Malaysia hub compares the two.
Questions to ask your software vendor
- Does the system already submit to MyInvois, by API or through a connector?
- Does it store the validated invoice and its validation link with the original record?
- How does it handle a rejected invoice, and a cancellation within LHDN's 72-hour window?
- Can it issue consolidated e-invoices where your relaxation period still allows them?
Your accounting or billing software vendor is the right place to ask how submission is set up. For the build-or-buy question on business software in general, see the custom software vs SaaS guide.
What to do about it
- Confirm your business's turnover band and current phase obligation directly against LHDN's published guidance.
- Identify where invoices are currently generated in your existing process — that is the system that needs a MyInvois submission path.
- Ask that system's vendor whether MyInvois submission is built in before planning a new system.
- Check your phase and mandatory date with the free e-invoice deadline checker.
Published by shakalakaa team · Editorial standards
Sources
- LHDN, e-Invoice implementation timeline (opens in a new tab) (four turnover phases from 1 August 2024 to 1 January 2026; taxpayers below RM3,000,000 exempted; page updated 30 August 2026; checked 19 October 2026).
- HASiL, media release of 30 August 2026 (opens in a new tab) (threshold raised from RM1 million to RM3 million with effect from 1 September 2026; checked 19 October 2026).
- LHDN, e-Invoice Specific Guideline (opens in a new tab) version 4.9, Table 16.1 (interim relaxation period for turnover up to RM5 million until 31 December 2027; checked 19 October 2026).