RM3 Million E-Invoicing Threshold: What It Means For AutoCount User

Effective 1 September 2026, the government has raised the e-Invoicing exemption threshold for MSMEs from RM1 million to RM3 million.

What Changed

Per LHDN, businesses with annual income or sales under RM3 million are no longer required to implement e-Invoicing — a change announced by the Prime Minister at the 2026 National Day Premier Address 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

• New businesses/operations (2023–2025) with turnover of at least RM3,000,000: implementation date is 1 July 2026.
• New businesses/operations from 2026 onwards: implementation date is 1 July 2026 or the commencement date. If first-year turnover is expected below RM3,000,000, this is deferred to 1 January in the second year after turnover reaches RM3,000,000.
• Statutory bodies, statutory authorities, local authorities and international organisations: mandatory from 1 July 2025.

Who’s Exempt — and Who Isn’t

The RM3,000,000 exemption (Section 1.6.1(e)) applies to all taxpayer types — individuals, partnerships, companies, co-operatives. It does not apply if:

1. You have a non-individual shareholder with turnover ≥RM3,000,000; or
2. You’re a subsidiary of a holding company with turnover ≥RM3,000,000; or
3. You have a related company* or joint venture with turnover ≥RM3,000,000.

*”Related company” per Section 2 of the Promotion of Investments Act 1986.

If You’re Already on e-Invoice System

Businesses mandated from 1 July 2026 who’ve already using AutoCount Accounting, don’t switch e-Invoicing off yet. LHDN’s Guideline v4.8 (30 Aug 2026) suggests an implementation date, once set, generally isn’t undone by later changes and that principle was written for changes in a taxpayer’s own turnover, not a policy-wide threshold hike. LHDN hasn’t issued transitional guidance for already-onboarded businesses, so suggest to continuing voluntarily.

What to do:

1. Confirm your real turnover bracket and exclusions — check the turnover and document your assessment.
2. Keep AutoCount’s integration running until LHDN clarifies the transitional position.
3. Clean up customer/supplier master data — TIN, BRN, SST details are the most common rejection cause.
4. Reconcile submissions since 1 July 2026 and clear any pending rejections.
5. Found past gaps in your submissions? check about LHDN’s e-Invoice Special Voluntary Disclosure Programme (SVDP).
6. Monitor hasil.gov.my/e-invois for the FAQ or circular addressing this exact situation.

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.

1. Verify true exemption — check the turnover when you back into mandatory scope.
2. Watch your growth — crossing RM3 million triggers an implementation date (typically 1 January in the second year after).
3. Consider going voluntary early — many B2B buyers already expect a validated e-Invoice for their own tax claims.
4. Upgrading e-Invoicing. AutoCount Accounting offers direct MyInvois submission, validation, and status tracking within the accounting module itself — avoiding the double handling that comes from bolting e-Invoicing onto a separate system later.