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Malaysia E-Invoicing

Phased RolloutLast verified 2026-05-19

Phase 4 went live 1 January 2026 (RM 1M-5M); penalty-free relaxation extended to 31 December 2027 (announced 20 April 2026). Phase 5 cancelled; permanent exemption raised to RM 1M turnover.

Key compliance facts

Standard

MyInvois JSON/XML (55 mandatory data fields)

Authority

LHDN/IRBM — Lembaga Hasil Dalam Negeri (Inland Revenue Board of Malaysia)

Mandatory For

Phased by FY2022 turnover; Phase 4 (RM 1M-5M) live since 1 Jan 2026; permanent exemption < RM 1M; Phase 5 cancelled

Effective Date

Aug 1, 2024 (Phase 1) · Jan 1, 2025 (Phase 2) · Jul 1, 2025 (Phase 3) · Jan 1, 2026 (Phase 4) · Dec 31, 2027 (relaxation ends) · Jan 1, 2028 (full enforcement)

About Malaysia E-Invoicing

Malaysia's MyInvois e-invoicing regime, operated by LHDN/IRBM (Inland Revenue Board of Malaysia), follows a Continuous Transaction Control model: invoices are submitted as JSON or XML, validated in real-time, and returned with a Unique Identification Number (UIN) and QR code before being shared with the buyer. Rollout phases (based on FY2022 annual turnover): Phase 1 — > RM 100M (1 Aug 2024); Phase 2 — RM 25M-100M (1 Jan 2025); Phase 3 — RM 5M-25M (1 Jul 2025); Phase 4 — RM 1M-5M (1 Jan 2026). On 6 December 2025 the Cabinet raised the permanent exemption threshold from RM 500,000 to RM 1,000,000 and cancelled the planned Phase 5 (which would have covered RM 150k-500k from 1 July 2026). Phase 4 mandatory start date remains 1 January 2026, but the penalty-free 'relaxation period' has been extended twice: originally 6 months, then to 31 December 2026, and on 20 April 2026 (with publication of Specific Guideline v4.7) extended a second time to 31 December 2027. Full enforcement begins 1 January 2028. During relaxation, consolidated e-invoices with general descriptions are permitted, but any individual transaction ≥ RM 10,000 still requires its own e-invoice. The 72-hour cancellation/rejection window applies throughout. Penalties (Section 120, Income Tax Act 1967): RM 200-20,000 per non-compliance and/or imprisonment up to 6 months. Submission via free MyInvois Portal, accounting software integration, or direct API/Peppol.

Implementation Phases

  1. Phase 1 — > RM 100M

    Aug 1, 2024

    Largest taxpayers begin MyInvois compliance.

  2. Phase 2 — RM 25M-100M

    Jan 1, 2025

    Upper mid-sized businesses.

  3. Phase 3 — RM 5M-25M

    Jul 1, 2025

    Medium businesses.

  4. Threshold reset + Phase 5 cancelled

    Dec 6, 2025

    Permanent exemption raised to RM 1M; planned Phase 5 (RM 150k-500k) cancelled.

  5. Phase 4 — RM 1M-5M

    Jan 1, 2026

    Mandatory go-live; penalty-free relaxation begins.

  6. Specific Guideline v4.7 + 2nd extension

    Apr 20-22, 2026

    LHDN publishes Specific Guideline v4.7; relaxation extended to 31 Dec 2027.

  7. Full enforcement Phase 4

    Jan 1, 2028

    Penalty enforcement begins for Phase 4 taxpayers.

Key Compliance Facts

  • Operating authority: LHDN/IRBM
  • Platform: MyInvois (CTC clearance with UIN + QR code)
  • Permanent exemption: < RM 1M turnover (since 1 Jan 2026)
  • Phase 5 (RM 150k-500k) cancelled 6 Dec 2025
  • Phase 4 mandatory: 1 January 2026
  • Phase 4 relaxation extended to 31 December 2027
  • Specific Guideline v4.7 published 20 April 2026
  • Format: 55 mandatory data fields (JSON/XML)
  • RM 10,000 transaction rule: always individual e-invoice
  • 72-hour cancellation/rejection window
  • Submission: portal, accounting software, API, Peppol

Frequently Asked Questions

Is e-invoicing mandatory in Malaysia?

Phased by FY2022 turnover; Phase 4 (RM 1M-5M) live since 1 Jan 2026; permanent exemption < RM 1M; Phase 5 cancelled. Status: Phased Rollout.

Which authority regulates e-invoicing in Malaysia?

LHDN/IRBM — Lembaga Hasil Dalam Negeri (Inland Revenue Board of Malaysia)

What e-invoicing standard does Malaysia use?

MyInvois JSON/XML (55 mandatory data fields)

What is the e-invoicing model in Malaysia?

Clearance (CTC) via MyInvois — IRBM/LHDN central platform with UIN

When did Malaysia e-invoicing take effect?

Aug 1, 2024 (Phase 1) · Jan 1, 2025 (Phase 2) · Jul 1, 2025 (Phase 3) · Jan 1, 2026 (Phase 4) · Dec 31, 2027 (relaxation ends) · Jan 1, 2028 (full enforcement)

Topics

clearanceCTCAsia PacificASEANMyInvoisPeppol