e-Invoice

Effective 1 September 2026, the government raised the e-Invoicing exemption threshold for MSMEs from RM1 million to RM3 million. LHDN has since released a new FAQ that answers the one question everyone was asking: what happens to businesses that already started issuing e-Invoices before the threshold went up? Here’s the full picture, updated with that guidance. What Changed Businesses with annual income or sales under RM3 million are no longer required to implement e-Invoicing — a change announced by the Prime Minister and expected to benefit over 1.1 million businesses. LHDN says the move eases the compliance burden on MSMEs, though it continues to encourage voluntary participation as part of the country’s digitalisation push. Implementation Timelines to Note Who’s Exempt — and Who Isn’t The RM3,000,000 exemption (Section 1.6.10 of the e-Invoice Guideline) applies to all taxpayer types — individuals, partnerships, companies, co-operatives. It does not apply if: *”Related company” per Section 2 of the Promotion of Investments Act 1986. If You’re Already on e-Invoice System If you’re an AutoCount Accounting user who was mandated from 1 July 2026 and has already onboarded: If You Haven’t Started Yet Good news for most, but don’t assume you’re permanently off the hook, and don’t wait until the last minute either. Frequently Asked Questions My business already existed before YA2022 and my revenue stayed under RM3 million that year — what’s my implementation date? If you meet the exemption criteria, your official date is still 1 July 2026, but you’re exempt from actually implementing. You only need to start once your revenue reaches RM3 million — from 1 July 2026 if that happens in YA2023–2025, or from 1 January in the second year after the YA it happens if that’s YA2026 onwards. If you don’t meet the exemption criteria, you must implement from 1 July 2026 regardless of how low your revenue is. My business started between YA2023 and YA2025 — how do I work out my date? If your revenue reached RM3 million in any of those years, implement from 1 July 2026. If it stayed under RM3 million and you meet the exemption criteria, you’re exempt (with 1 July 2026 as your notional date) until revenue crosses RM3 million from YA2026 onwards, at which point you implement from 1 January in the second year after that YA. If your revenue stayed low but you don’t meet the exemption criteria — for example, you’re a subsidiary of a company that has already implemented e-Invoice — you must still implement from 1 July 2026. My business only started from YA2026 onwards — what applies to me? If you don’t meet the exemption criteria, implement from 1 July 2026 or your commencement date, whichever is later. If you do meet the criteria, you’re exempt for as long as your revenue for that first YA stays under RM3 million. Once revenue in any YA reaches RM3 million, you implement from 1 January in the second year following that YA. (Two businesses starting the same day can end up on very different timelines — one earning RM3.12 million in its first year would implement two years later, while one earning RM308,000 stays exempt until it eventually crosses the threshold.) I was supposed to implement e-Invoice, but I never got around to it — and I now qualify for the exemption. Will I be penalised for not issuing e-Invoices in the meantime? No. If your revenue is under RM3 million and you meet the exemption criteria, you’re treated as exempt from your original implementation date onward — even if you didn’t issue a single e-Invoice since that date. No compliance action or penalty applies. I’ve already been issuing e-Invoices, but I now qualify for the exemption. Do I need to apply to LHDN to stop? No separate application or prior approval is needed. If you meet the exemption criteria, you can discontinue issuing e-Invoices immediately. You’re also free to keep issuing them voluntarily if you’d prefer. I found gaps in my past e-Invoice submissions, and I now qualify for the exemption — do I need to go through the SVDP for those omissions? No. If you now meet the exemption criteria, you’re not required to participate in the e-Invoice Special Voluntary Disclosure Programme (SVDP) for those omissions, and you can simply stop issuing e-Invoices going forward. Can I keep issuing e-Invoices even though I’m exempt? What happens if my revenue grows again later? Yes — voluntary participation is welcomed and encouraged as part of the Government’s digitalisation push. But the exemption isn’t permanent: if your turnover later reaches or exceeds RM3 million, you’ll be required to implement e-Invoice again, starting 1 January in the second year following the YA in which you crossed the threshold.

If your company has fallen behind on e-Invoice compliance since the mandate began, there is now a structured way to correct it. IRBM has introduced a programme called SVDP, which allows businesses to disclose and fix past e-Invoice issues without facing penalties. Here is what every Malaysian business owner should know. What Does SVDP Stand For? SVDP stands for e-Invoice Special Voluntary Disclosure Programme. In simple words: it is a correction period. During this time, you can disclose to IRBM about e-Invoice problems from the past. If you do it the right way, you will not be penalty for those old mistakes. When Does SVDP Run? SVDP started on 7 July 2026 and will end on 31 December 2027. That gives businesses about 18 months to check their records and fix any problems. Why Was SVDP Introduced? Since Malaysia rolled out mandatory e-Invoicing, many businesses have found gaps in their records. Common problems include: Most of these mistakes happen by accident, not on purpose. SVDP gives businesses a safe way to correct these mistakes themselves, instead of waiting for IRBM to find the problem first. What Do You Get If You Use SVDP? If you come forward honestly and give complete, correct information, you will generally get: In effect, self-correction under SVDP is treated far more favorably than non-compliance that is later identified through an IRBM audit or investigation. AutoCount Accounting software supports these, submitting under SVDP is straightforward you just check a box and the system handles the rest. What SVDP Does NOT Cover SVDP is intended to support genuine, good-faith correction and not to shield deliberate non-compliance. The relief does not apply where: How to Get Ready for SVDP Here is a simple step-by-step way to prepare: Conclusion SVDP represents a structured, time-bound opportunity for Malaysian businesses to regularise their e-Invoice compliance without facing penalties, provided disclosures are made honestly and completely. It is intended for genuine oversights, not deliberate non-compliance. Businesses with any uncertainty about their e-Invoice history should begin reviewing their records now, well ahead of the 31 December 2027 deadline.

E-Invoice Transition Extended Until 31 December 2027 for RM1mil–RM5mil Businesses Another major relief measure is the additional 12-month transition period for Phase 4 of Malaysia’s e-Invoice rollout. Businesses with annual turnover between RM1 million and RM5 million now have until 31 December 2027 during the transition period. The Inland Revenue Board’s published implementation timeline otherwise lists taxpayers with turnover of up to RM5 million for e-Invoice implementation, while taxpayers with less than RM1 million are exempted. This extension is important, but it should be understood correctly: SMEs in this group still need to submit e-Invoices The extension does not mean businesses can ignore e-Invoicing altogether. The announced easing allows this group to issue consolidated e-Invoices during the transition period, rather than requiring the same level of transaction-by-transaction operational burden immediately. In other words, submission still needs to happen, but in a more manageable format. The real benefit is more preparation time The extra 12 months gives affected SMEs more time to prepare their systems, staff, data fields, workflows, and internal controls before moving into stricter operational compliance. For many small businesses, this added runway can reduce implementation mistakes, lower panic-driven software changes, and create space for training and process testing. The official LHDN timeline states that the phased rollout is designed to give taxpayers sufficient time to prepare and adapt. Likely effect on current AutoCount users For current AutoCount users, the extension should generally mean: 1. Less immediate pressure to go fully transaction-by-transactionBusinesses in the RM1 million to RM5 million turnover band can keep moving forward with e-Invoice compliance using a consolidated approach during the transition period, instead of rushing into more complex real-time workflows immediately. 2. More time to clean up master data and processesEven with software in place, businesses still need correct customer details, TIN handling, item classifications, document mapping, approval workflows, and submission controls. AutoCount highlights these setup and compliance-related requirements in its e-Invoice materials. 3. Better use of training and staged rolloutAutoCount is still actively running e-Invoice training sessions as of April and May 2026, which suggests users can use this window to train finance teams, test submissions, and fix operational issues before tighter enforcement expectations eventually arrive. 4. Compliance is easier, not optionalThe key message for AutoCount users is this: the extension reduces urgency, but it does not remove the obligation to comply. Businesses should use the extra time to improve readiness, not postpone preparation until the last minute. That conclusion is consistent with the government’s transition approach and LHDN’s phased implementation objective.