Malaysia has updated its e-Invoicing framework by raising the exemption threshold to RM1 million and confirming a phased rollout from 2024 to 2026, as part of broader efforts to digitalise tax administration and strengthen the country’s digital economy.
The Inland Revenue Board of Malaysia (IRBM) has released an updated guidance on 7 December 2025, where it revised the annual turnover threshold for e-invoicing.
In a previous report, taxpayers with annual turnover or revenue below MYR 500,000 were exempt from e-invoicing. However, under the updated e-Invoice implementation timeline, this exemption has been adjusted to RM1,000,000.
To support the growth of the digital economy, the Government intends to implement e-Invoice in stages in an effort to enhance the efficiency of Malaysia’s tax administration management. This is in line with the Twelfth Malaysia Plan, where one of the key focuses is on strengthening the digital services infrastructure and digitalising the tax administration.
The e-Invoice will enable near real-time validation and storage of transactions, catering to Business-to-Business (B2B), Business-to-Consumer (B2C) and Business-to-Government (B2G) transactions.
The updated implementation timeline is as follows:
| Targeted Taxpayers | Implementation Date |
| Taxpayers with an annual turnover or revenue of more than RM 100 million | 1 August 2024 |
| Taxpayers with an annual turnover or revenue of more than RM 25 million and up to RM 100 million | 1 January 2025 |
| Taxpayers with an annual turnover or revenue of more than RM 5 million and up to RM 25 million | 1 July 2025 |
| Taxpayers with an annual turnover or revenue of up to RM 5 million | 1 January 2026 |
| Taxpayers with an annual turnover or revenue of less than RM1,000,000 are exempted from e-Invoice implementation | |
The updated e-Invoice Guideline (Version 4.6, dated 7 December 2025) sets new implementation timelines for new businesses or operations. Entities commencing between 2023 and 2025 with an annual turnover of at least MYR 1 million must implement e-invoicing from 1 July 2026.
Businesses starting from 2026 onward must implement e-invoicing on 1 July 2026 or upon commencement, whichever is later. If first-year turnover is below MYR 1 million, e-invoicing applies from 1 January of the second year after turnover reaches MYR 1 million.
