LHDN e-Invoice deadlines in Malaysia
Key takeaways
- Malaysia's e-Invoice mandate rolls out in phases by annual turnover: Phase 1 (above RM100M) from 1 Aug 2024, Phase 2 (RM25–100M) from 1 Jan 2025, Phase 3 (RM5–25M) from 1 Jul 2025, and Phase 4 (RM1–5M) from 1 Jan 2026.
- Businesses above RM5M turnover are past their interim relaxation and under full enforcement now.
- Phase 4 (RM1–5M) has a 12-month transition (1 Jan – 31 Dec 2026) during which consolidated e-Invoices are allowed with no penalties if conditions are met. Guideline v4.7 reportedly extends this to 31 Dec 2027 — confirm on hasil.gov.my before relying on it.
- Businesses below RM1M annual turnover are not required to implement e-Invoicing, subject to conditions in the official guideline. This is general information, not tax advice.
Malaysia's LHDN (HASiL) e-Invoice mandate is being introduced in phases, and which phase you're in depends on your annual turnover. This guide lays out the official timeline, who has to comply and by when, and the two things people most often get wrong: the Phase 4 transition period, and the below-RM1M exemption.
The rollout timeline by turnover
| Phase | Annual turnover | Mandatory from |
|---|---|---|
| Phase 1 | Above RM100 million | 1 August 2024 |
| Phase 2 | RM25M – RM100M | 1 January 2025 |
| Phase 3 | RM5M – RM25M | 1 July 2025 |
| Phase 4 | RM1M – RM5M | 1 January 2026 |
| Exempt* | Below RM1M | Not required* |
If your turnover is above RM5M, all of your phases are past their interim relaxation windows — you are under full, per-transaction enforcement today. If you're still issuing invoices from Word, Excel, or manual portal entry, that's the gap to close first.
The Phase 4 transition period (RM1M–RM5M)
Phase 4 businesses (RM1M–RM5M turnover) became mandatory on 1 January 2026, but with a Government-approved 12-month transition period running 1 January to 31 December 2026. During that window, taxpayers may issue consolidated e-Invoices — including where buyers request individual ones — and HASiL imposes no penalties provided the guideline's conditions are met. In practice that means Phase 4 businesses have room to prepare rather than a hard cliff.
Verify the extended date
e-Invoice Specific Guideline v4.7 (reported April 2026) is reported to extend the Phase 4 relaxation to 31 December 2027, with full enforcement from 1 January 2028 and the 1 January 2026 mandatory date unchanged. Treat this as reported, not confirmed — check hasil.gov.my directly before relying on the 2027 date.
The below-RM1M exemption
Businesses with annual turnover below RM1M are not required to implement e-Invoicing (the threshold was raised from RM500k in the January 2026 updates). But the exemption comes with conditions and exceptions in the official guideline — for example how it's treated if your revenue later crosses the threshold, related-company situations, and categories of persons required or exempted regardless of turnover. Don't assume you're automatically exempt: check the current HASiL guideline or your tax adviser.
Do your buyers change anything?
Yes — even inside a transition window, a corporate buyer can ask you for a proper individual e-Invoice for their own records and tax position. So two things create real urgency regardless of your phase: being above RM5M (fully enforced), and having B2B buyers who request individual e-Invoices. If either applies, you need a working way to issue them now.
This is general information, not tax advice
Dates and thresholds here reflect LHDNM media releases and the e-Invoice guidelines as summarised for general reference. Rules change and conditions apply. Always verify against the current guideline on hasil.gov.my, or consult your tax adviser, before acting.
When is the LHDN e-Invoice deadline for my business?
It depends on annual turnover: above RM100M from 1 Aug 2024, RM25–100M from 1 Jan 2025, RM5–25M from 1 Jul 2025, and RM1–5M from 1 Jan 2026 (with a transition period through at least 31 Dec 2026). Below RM1M is not required, subject to conditions.
Is e-Invoicing mandatory for small businesses in Malaysia?
Businesses with annual turnover between RM1M and RM5M are in Phase 4 (mandatory from 1 January 2026, with a transition period). Those below RM1M are not required, subject to the conditions in the official HASiL guideline.
What happens if I miss the deadline?
Non-compliance falls under section 120 of the Income Tax Act 1967. The practical risk is also commercial: buyers who need e-Invoices may not be able to transact with you. Check current requirements with HASiL or your tax adviser.
Can I still issue consolidated e-Invoices?
During the Phase 4 transition period, consolidated e-Invoices are permitted for eligible taxpayers under the guideline's conditions. Whether that applies to you depends on your phase and activities — verify against the current guideline.
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