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Einvoice Threshold Increase to RM 3 Million

e-Invoice Threshold Increased from RM1 Million to RM3 Million

The Government has announced an important update on the implementation of e-Invoice in Malaysia.
The annual turnover threshold for e-Invoice exemption has been increased from RM1 million to RM3 million.
 
This means businesses with an annual turnover of RM3 million or below will not be required to implement e-Invoice under the new threshold.
 
The new threshold will take effect from 1 September 2026.

What Does This Mean for Businesses?

For many small and medium-sized businesses, this announcement will provide some relief as they will no longer need to implement e-Invoice if their annual turnover is RM3 million or below.

 

Businesses that were previously preparing to implement e-Invoice based on the RM1 million threshold should review their current turnover and assess whether they are still required to implement e-Invoice under the new threshold.

 

However, businesses should continue to keep proper accounting records, issue invoices and maintain their usual tax compliance requirements.

 

The increase in the threshold is expected to benefit a large number of businesses across Malaysia, particularly smaller businesses and SMEs.

What Should Business Owners Do?

Business owners should first check their latest annual turnover and determine whether their business falls within the new RM3 million threshold.

 

If your annual turnover is below RM3 million, you should still keep your accounting and business records properly and continue to monitor any further announcements or guidelines from the relevant authorities.

 

For businesses with turnover above RM3 million, e-Invoice requirements will continue to apply based on the applicable implementation rules and timelines.

 

It is also important to note that the e-Invoice threshold and implementation requirements may be subject to further clarification by the authorities. Businesses should therefore refer to the latest official guidelines before making any changes to their compliance process.

A Positive Update for SMEs

The increase from RM1 million to RM3 million is a significant change for many Malaysian businesses.

For smaller businesses, this provides more flexibility and reduces the immediate administrative work involved in implementing e-Invoice.


At the same time, businesses should not wait until the last minute to review their accounting records and tax requirements. Understanding your turnover and keeping proper records will help ensure that your business is ready if the requirements change in the future.


We will continue to share updates on e-Invoice, tax, accounting and corporate matters as further information becomes available.


🇲🇾 Happy Independence Day, Malaysia!

Malaya Corporate

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