Both e-Invoice Guidelines (e-Invoice Guideline Version 4.4 and e-Invoice Specific Guideline Version 4.2) were updated by the Inland Revenue Board of Malaysia (IRBM) on 5 June 2025.
A) Salient changes/clarifications to the e-Invoice Guideline Version 4.4 (updated 5 June 2025)
- The e-Invoicing implementation date for Micro, Small and Medium Enterprises (“MSMEs”) with the following annual turnover or revenue have been postponed, as follows:
- Exceeding RM1 million and up to RM5 million have been postponed to 1 January 2026.
- At least RM500,000 and up to RM1 million have been postponed to 1 July 2026
- Implementation dates for new businesses or operations have also been adjusted accordingly as follows:
- New businesses or operations commencing from year 2023 to 2025 with annual turnover or revenue of at least RM500,000 are required to implement e-Invoice by 1 July 2026.
- New businesses or operations commencing from year 2026 onwards are required to implement e-Invoice by 1 July 2026 or upon the operation commencement date. However, if the first year’s turnover or revenue is less than RM500,000, taxpayer is required to implement e-Invoice on 1 January of the second immediate year following the year in which the total annual turnover or revenue reaches the new RM500,000 exemption threshold.
- The exemption threshold from implementing e-Invoice has increased from RM150,000 to RM500,000.
Below is the revised e-Invoice implementation timeline:
| Phase | Targeted Taxpayers | Implementation Date |
|---|---|---|
|
3
|
Taxpayers with an annual turnover or revenue of more than RM5 million and up to RM25 million
|
1 July 2025
|
|
4
|
Taxpayers with an annual turnover or revenue of more than RM1 million and up to RM5 million
|
1 January 2026
|
|
5
|
Taxpayers with an annual turnover or revenue of at least RM500,000 and up to RM1 million
|
1 July 2026
|
B) Salient clarifications to the e-Invoice Specific Guideline Version 4.2 (updated 5 June 2025)
- In line with the above-mentioned deferment of implementation for MSMEs, the six (6)-month interim relaxation period from the mandatory implementation date has also been updated accordingly as follows:
| Phase | Targeted Taxpayers | Interim Relaxation Period |
|---|---|---|
|
3
|
Taxpayers with an annual turnover or revenue of more than RM5 million and up to RM25 million
|
1 July 2025 to
31 December 2025 |
|
4
|
Taxpayers with an annual turnover or revenue of more than RM1 million and up to RM5 million
|
1 January 2026 to
30 June 2026 |
|
5
|
Taxpayers with an annual turnover or revenue of at least RM500,000 and up to RM1 million
|
1 July 2026 to
31 December 2026 |
- Effective from 1 January 2026, taxpayers in all industries are not allowed to issue consolidated e-Invoice for any transaction with a value exceeding RM10,000 per transaction. Taxpayers are required to issue individual e-Invoice even if the buyer does not require an e-invoice.
We would like to highlight that the e-Invoice Guidelines may be subject to changes. For further details, please click on the links above or please contact your respective Grant Thornton tax adviser should you require further guidance.
