e-Invoice Malaysia 2026: Who Must Issue One and How MyInvois Works

If your business's annual turnover or revenue is below RM3,000,000, you're currently exempt from LHDN e-Invoice and can keep issuing normal invoices and receipts. If it's RM3,000,000 or more, you must issue e-Invoices through LHDN's MyInvois system, and the smallest businesses in scope have an interim relaxation period until 31 December 2027.

This guide explains who must issue an e-Invoice, which date applies to you, how the MyInvois flow works, and what consolidated e-Invoices are. It's based on LHDN's e-Invoice Guideline (version 4.8, 30 August 2026) and e-Invoice Specific Guideline (version 4.9, 7 September 2026). LHDN has changed the thresholds more than once, so check the latest version before you make a big decision.

What an e-Invoice actually is

An e-Invoice is a digital record of a sale between a supplier and a buyer that has been validated by LHDN. It holds the same details as a normal invoice: supplier and buyer details, item description, quantity, price before tax, tax and total. The difference is that it goes to LHDN first. Once validated, it gets an LHDN Unique Identifier Number, a validation date and time, and a QR code that anyone can use to check it on the MyInvois Portal.

A PDF invoice you design yourself, or one made with the KiraBoss invoice generator, is not an e-Invoice on its own. It only becomes one if the details are submitted to MyInvois and validated.

LHDN recognises four e-Invoice types:

• Invoice: records a sale (including a self-billed invoice to record an expense)
• Credit note: reduces an earlier e-Invoice (errors, discounts, returns) without refunding money
• Debit note: adds charges to an earlier e-Invoice
• Refund note: confirms money paid back to the buyer

A quotation isn't one of them, so you never submit quotations to LHDN. See invoice vs quotation vs receipt if you're unsure which document is which.

Who must issue e-Invoices, and from when

LHDN rolled out e-Invoice in four phases, based on annual turnover or revenue:

• More than RM100 million: from 1 August 2024
• More than RM25 million up to RM100 million: from 1 January 2025
• More than RM5 million up to RM25 million: from 1 July 2025
• Up to RM5 million: from 1 January 2026

Exempt: taxpayers with annual turnover or revenue of less than RM3,000,000. In practice, the fourth phase covers businesses from RM3,000,000 up to RM5,000,000.

Your phase is based on 2022 figures:

• With audited accounts: turnover in your financial year 2022 audited financial statements
• Without audited accounts: revenue reported in your tax return for year of assessment 2022

Once your date is fixed, later changes in turnover don't move it. If your 2022 financial year wasn't 12 months long, LHDN pro-rates it to 12 months.

New businesses:

• Started 2023 to 2025 with turnover of at least RM3,000,000: from 1 July 2026
• Started 2026 onwards: from 1 July 2026 or the date operations begin. If first-year turnover is expected to be below RM3,000,000, the date is 1 January of the second year after the year turnover reaches RM3,000,000

The exemption has limits

The RM3,000,000 exemption covers all kinds of taxpayers: sole proprietors, partnerships, companies and co-operatives. But it doesn't apply if your business:

• has a non-individual shareholder with turnover of at least RM3,000,000
• is a subsidiary of a holding company with turnover of at least RM3,000,000
• has a related company or joint venture with turnover of at least RM3,000,000

So a small Sdn Bhd owned by a larger group is usually still in scope.

Some income never needs an e-Invoice, whoever you are: employment income, pension, alimony, zakat, and certain dividends, share and securities transactions. Your gaji doesn't need an e-Invoice. Your EA form and payslip still do that job (see how to read your EA form).

How the MyInvois flow works

If you're in scope, there are two ways in: the MyInvois Portal (LHDN's web portal, suited to smaller volumes) or an API connection from your accounting or POS software. On the portal you can create e-Invoices one by one or batch-upload them with LHDN's Excel template.

1. Create and submit. Fill in the required fields and submit.
2. Validation. LHDN validates in near real time. If there's an error, it's returned unvalidated. Fix it and resubmit.
3. Notification. LHDN emails both you and the buyer.
4. Share. You send the buyer the validated e-Invoice or its PDF visual representation with the QR code. For now, LHDN accepts either.
5. Reject or cancel (72 hours). Within 72 hours of validation, the buyer can request rejection and you can cancel. After 72 hours, fix mistakes with a credit, debit or refund note.
6. Storage. LHDN stores validated e-Invoices, but you still need to keep your own records.

Buyers who are individuals

When you sell to an individual who wants an e-Invoice but only gives a MyKad number, LHDN's specific guideline says to enter the general TIN EI00000000010 plus their MyKad number.

Consolidated e-Invoices: the monthly shortcut

Most retail customers don't ask for an e-Invoice. For them, you issue a normal receipt as usual. You then combine those sales into one consolidated e-Invoice per month, submitted within 7 calendar days after month end.

Consolidation isn't allowed for certain activities, including sale of motor vehicles, flight tickets, construction contracts, payments to agents, dealers or distributors, and, from 1 January 2026, any single transaction above RM10,000 in any industry. Those need an individual e-Invoice.

During the interim relaxation period, businesses can issue consolidated e-Invoices for all transactions, including those above RM10,000, and can put any description in the product or service field. For the up-to-RM5-million phase, the relaxation runs until 31 December 2027. LHDN says it won't prosecute under section 120 of the Income Tax Act for non-compliance during that period, as long as you submit the consolidated e-Invoices.

Worked example 1: freelancer below RM3,000,000

Aina is a freelance graphic designer. Her 2022 revenue was RM96,000, and she billed RM180,000 last year.

• RM180,000 is far below RM3,000,000, and she has no corporate shareholders or related companies
• Result: exempt. She can keep sending normal invoices
• A client in scope can still use Aina's invoice and receipt as proof of expense. LHDN says receipts from exempt persons are accepted for tax purposes

She should still put her name, address, a clear description, dates and the total on every invoice. Our freelancer invoice checklist covers this. Going voluntary is allowed, but it's a choice, not a requirement.

Worked example 2: shop in the RM3m–RM5m phase

Kedai Hardware Lim Sdn Bhd had 2022 audited turnover of RM3,600,000, so its implementation date was 1 January 2026. In November 2026:

• Total sales: RM312,450 across 1,240 receipts
• Customer A asked for an e-Invoice: RM1,850
• Customer B (a contractor) asked for an e-Invoice: RM12,400

What Lim does:

1. Issue individual e-Invoices to customers A and B through MyInvois
2. Consolidate the rest: RM312,450 − RM1,850 − RM12,400 = RM298,200
3. Submit that consolidated e-Invoice by 7 December 2026

During the relaxation period, Lim could legally include customer B's RM12,400 in the consolidated e-Invoice too. From 1 January 2028, the relaxation ends: any sale above RM10,000 will need its own e-Invoice, and customers who ask for one must get one.

Common mistakes

• Thinking a PDF invoice is an e-Invoice. Without LHDN validation, it's a normal invoice.
• Using this year's turnover to find your phase. The phase uses 2022 audited accounts or the YA2022 return. The exemption rules for group companies look at the group.
• Missing the 7-day window. Consolidated e-Invoices for a month are due within 7 calendar days after month end, not with your tax return.
• Cancelling after 72 hours. You can't. Issue a credit, debit or refund note instead.
• Treating 2027 as the deadline to start. For the RM3m–RM5m phase, the obligation started in 2026. The relaxation only eases how you comply. It doesn't postpone it.
• Forgetting group rules. A small subsidiary of a large company usually isn't exempt.

Quick checklist

1. Find your 2022 turnover (audited accounts or YA2022 return)
2. Check for corporate shareholders, a holding company, related companies or joint ventures at RM3,000,000+
3. If in scope, register on MyInvois or ask your software provider about the API
4. Decide which sales get individual e-Invoices and which go into the monthly consolidation
5. Diarise the 7th of each month for consolidated submissions
6. Before 1 January 2028, set up individual e-Invoices for sales above RM10,000

If you're exempt and just need tidy invoices, the KiraBoss invoice generator creates a clean PDF in minutes. It isn't connected to MyInvois, so it doesn't submit e-Invoices to LHDN.