Dated summary, checked 5 October 2026. Rules and dates have changed several times since 2024. Always confirm your own position on the LHDN e-Invoice page or with your tax agent. This article explains the system side; it is not tax advice.
What is e-invoicing in Malaysia?
An e-invoice is an invoice in a structured digital format that is sent to LHDN (the Inland Revenue Board, IRBM) for validation through its MyInvois system. Once validated, the invoice receives a unique identifier and a QR code that the buyer can use to check it. It covers sales invoices, credit notes, debit notes and refund notes, and in some cases self-billed invoices that the buyer issues on the supplier’s behalf.
In practice, this means an invoice is no longer just a PDF you email. It is a record that has to be accepted by LHDN, and your system has to keep track of that.
Who has to comply, and when
Implementation has been phased by annual turnover or revenue. The current position:
| Annual turnover | Mandatory from | Status (Oct 2026) |
|---|---|---|
| Above RM100 million | 1 August 2024 | In force |
| RM25 million to RM100 million | 1 January 2025 | In force |
| RM5 million to RM25 million | 1 July 2025 | In force |
| RM1 million to RM5 million | 1 January 2026 | In force, with interim relaxation until 31 December 2027 |
| Below RM1 million | Not scheduled | Exempt (threshold raised from RM500,000 in December 2025) |
The interim relaxation period gives newer phases room to settle in, for example by allowing consolidated e-invoices more widely, but the obligation itself has already started. Businesses that use the time to set up their system properly will have a much easier 2028.
Where does my business stand? Pick your annual turnover.
Position as checked on 5 October 2026. Confirm with LHDN or your tax agent.
MyInvois Portal or API: which route fits you?
There are two main ways to submit e-invoices:
- MyInvois Portal. A free web portal from LHDN where you key in or upload invoices. Reasonable if you issue a small number of invoices a month and your team does not mind entering them twice.
- API integration. Your own billing, POS or ERP system sends each invoice to MyInvois automatically and stores the result. This is the sensible choice once invoice volume grows, because nobody retypes anything.
Some businesses use an intermediary service between their system and MyInvois. Whichever route you take, the question to ask is simple: where are our invoices created today, and can that place talk to MyInvois? If the answer is "a Word template" or "three spreadsheets", e-invoicing is a good moment to fix that.
What your system needs to handle
If your invoices come out of a system, it needs to do more than print a nice PDF. Check that it can:
- Capture buyer details properly, including the buyer’s tax identification number (TIN) and registration number for business customers.
- Store classification and tax codes for the products and services you sell, so they do not have to be chosen by hand every time.
- Submit and record the result: validated, rejected or cancelled, with LHDN’s unique identifier and QR code stored against each invoice.
- Print the QR code on the invoice or receipt you give the customer.
- Handle consolidated e-invoices for retail customers who do not ask for their own e-invoice, where the rules allow it.
- Issue credit, debit and refund notes that link back to the original e-invoice, instead of editing old invoices.
- Cope with cancellations and rejections inside the short window LHDN allows after validation.
None of this is exotic, but it touches your customer records, product list and sales flow. That is why e-invoicing is easiest when quotations, orders, invoices and stock already live in one connected system.
If you are under RM1 million
You are currently exempt from issuing e-invoices, but e-invoicing still reaches you. Your larger suppliers will send you e-invoices, and larger customers may prefer suppliers who can issue them. The threshold has already moved once, so it is worth keeping your customer and product records tidy now. If you are planning a new system anyway, ask for it to be built so e-invoicing can be switched on later.
A practical checklist
- Confirm your turnover band and phase with your tax agent.
- Collect TINs and registration numbers for your business customers.
- Decide between the MyInvois Portal and API integration based on monthly invoice volume.
- Check whether your current software supports MyInvois, and what it charges for it.
- Test with LHDN’s sandbox before going live, if you integrate through the API.
- Train the people who issue invoices on credit notes, cancellations and consolidated e-invoices.
Sources
- LHDN: e-Invoice (official guidelines, FAQs and timeline)
- LHDN MyInvois Portal
- Sovos: exemption threshold increased to RM1 million (December 2025)
- VATupdate: Phase 4 relaxation extended to 31 December 2027 (April 2026)
Frequently asked questions
Do I need to issue e-invoices if my turnover is below RM1 million?
As of October 2026, no. Businesses with annual turnover below RM1 million are exempt from mandatory e-invoicing. You will still receive e-invoices from suppliers, and the threshold can change, so check LHDN’s e-Invoice page for the latest position.
Can I keep using my current billing software?
If your software supports MyInvois, yes. Ask your provider whether it submits e-invoices through the API, stores the validation result and prints the QR code, and whether that is included or charged separately.
Can a custom system connect directly to MyInvois?
Yes. LHDN provides an API for system-to-system submission, so a custom billing or ERP system can be built to send each invoice for validation and store the unique identifier and QR code automatically.
Quotations, sales orders, invoices and reports in one system, designed around how you bill today.
Managing Director and Software Solution Architect at Potadot, a web and system solutions company in Butterworth, Penang that builds custom ERP systems, online platforms, mobile apps and websites for businesses across Malaysia.
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