The phase timeline (verified 2026-08-23)
| Revenue band | Phase | Mandatory from | Relaxation end |
|---|---|---|---|
| Above RM100 million | Phase 1 | 1 August 2024 | 31 January 2025 |
| RM25 million – RM100 million | Phase 2 | 1 January 2025 | 30 June 2025 |
| RM5 million – RM25 million | Phase 3 | 1 July 2025 | 31 December 2025 |
| RM1 million – RM5 million | Phase 4 | 1 January 2026 | 31 December 2027 |
| RM1m–RM5m — crossed threshold mid-year (concessionary) | Concessionary | 1 July 2026 | 31 December 2027 |
| Below RM1 million | Exempt | Currently exempt (threshold raised from RM500,000 to RM1,000,000 effective 1 January 2026) | n/a |
Source: LHDN published MyInvois guidance (hasil.gov.my/en/e-invoice) plus the LHDN General FAQs PDF for the concessionary path — verified 2026-08-23. Relaxation-end reflects IRBM's April 2026 twelve-month extension; older 31 December 2026 dates are superseded.
What changed on 1 January 2026
Two thresholds moved together: the exemption threshold rose from RM500,000 to RM1,000,000 annual turnover, and Phase 4 (RM1M–RM5M) came into force — so a band of SMEs crossed into mandatory e-invoicing on the same date another band exited it. If your revenue sits near either boundary, re-check your status rather than assuming last year's classification still applies. From the same date, individual e-invoices became mandatory for transactions above RM10,000 (consolidated batched invoicing is no longer permitted above that threshold).
The 1 July 2026 concessionary date
LHDN's General FAQs work through a specific case: a business that crosses the RM1 million annual-turnover line but does not meet the small-and-micro exemption criteria implements from 1 July 2026, not 1 January 2026. This is the LHDN-published concessionary implementation date for businesses falling into the phased rollout mid-year. Selecting "yes" on the crossed-mid-year question above routes the result to this path.
Readiness checklist
- Confirm your revenue band, financial-year-end and phase date with LHDN or a tax advisor — do not rely solely on this tool.
- Choose submission method: LHDN's free MyInvois Portal (manual, low volume) vs API integration into your billing/accounting system.
- Audit any reliance on consolidated invoicing — restricted above RM10,000 per transaction from 1 January 2026.
- Map your invoicing software's MyInvois compatibility or budget an integration.
- Train invoice-issuing staff on the validation flow before your mandatory date, not after.
If your billing system needs MyInvois integrated in rather than a manual portal workaround, see our custom software service. For the mechanics of the exemption threshold, the Phase 4 change and the April 2026 relaxation extension in more depth, see the e-invoice Malaysia hub and e-invoicing automation in Malaysia. SST-registered businesses: your SST number is a required MyInvois field — see SST on digital marketing in Malaysia.