Malaysia's e-Invoice in Plain Terms: Who Must Issue One in 2026, the New RM3 Million Exemption, and the FY2022 Rule Nobody Mentions
The last phase of Malaysia's e-Invoice rollout started on 1 January 2026 for businesses with turnover up to RM5 million — and since 30 August 2026 most of them no longer have to issue at all. LHDN's e-Invoice Guideline Version 4.8 raised the exemption from less than RM1,000,000 to less than RM3,000,000, with three carve-outs for businesses tied to a larger shareholder, holding company or related company. Two other things are widely misunderstood. Your phase was fixed by your FY2022 numbers and does not move with later turnover. And the exemption only covers issuing: anyone selling to you still has to issue an e-Invoice, and any company you own is assessed on its own.
