Does My Sdn Bhd Need e-Invoicing?

By Axecta Management Services, Kuala Lumpur · Last verified: 29 October 2026

The quick answer

If your company issues invoices for goods or services in Malaysia, assume that e-invoicing will apply to you. What you need to establish is when. LHDN has published a phased timetable, and the phase depends on the company’s turnover. It has also allowed relief periods and exemptions for some businesses.

How turnover is measured for this purpose

The guideline specifies which turnover figure to use, which financial year it comes from, and how to treat group companies and special cases. Use these steps:

1. Identify the financial year LHDN tells you to use.
2. Take the company’s revenue for that year from the audited or management accounts.
3. Compare it with each band in the table.
4. Where the guideline gives a rule for new companies or changes in turnover, apply it.

If the company belongs to a group, check whether the guideline measures turnover per entity or on another basis.

Which phase your company falls into

Once you have your turnover figure and the table, you will land in one phase with a start date. Write it down and add it to your compliance calendar. Then check two further points the guideline addresses:

• Is there a transitional or relief period after the start date? See implementation and transitional relief explained.
• Do you qualify for an exemption or a simplified approach? See who qualifies for the e-invoice exemption.

What if you sell only to consumers, or only to businesses?

E-invoicing covers business-to-business, business-to-consumer and business-to-government transactions. For sales to individuals who do not ask for an e-invoice, the guideline allows certain approaches, such as consolidated submissions, under specified conditions. The conditions matter, so read them. If most of your customers are businesses, expect them to ask for validated e-invoices as soon as their own obligations start, whatever your date is.

Voluntary adoption and customer requests

Even before your mandatory date you can usually submit e-invoices voluntarily. Many businesses start early because large customers require it, because it exposes data problems while the stakes are low, or because their software update makes it simple. If a customer asks, check whether they are legally required to receive e-invoices and what data they need from you.

What if your turnover is below the threshold?

The guideline has treated businesses below a stated turnover level differently, for example with exemptions. That status can change with updated guidance, and turnover can rise over time. Re-check your position each year when the accounts are finalised.

What to do now, based on your answer

• Your date is near or has passed: choose a submission route, test, and begin issuing e-invoices. See the SME e-invoice guide.
• Your date is later: clean your customer and item data now. See preparing your accounting records.
• You may be exempt: document why, and keep watching the guideline.
• You are unsure: ask your accountant or Axecta to confirm in writing.

How Axecta helps

Axecta’s accounting team works out the applicable phase from your accounts, sets up your records and submission route, and checks that validated invoices match your books. For clients on monthly bookkeeping, e-invoice reconciliation can be part of the monthly close.

Apply the official table to your numbers

LHDN’s implementation timeline (updated 30 August 2026) groups taxpayers by annual turnover or revenue and lists these dates:

The same page says that taxpayers with annual turnover or revenue of less than RM3,000,000 are exempted from e-Invoice implementation.

A decision path

1. Take the revenue figure for the year LHDN’s guideline tells you to use.
2. Is it less than the exemption figure on the timeline page? If yes, you are likely exempt; document it.
3. If not, find the band it falls in and the date.
4. Has that date passed? Then you are in scope now.
5. If the date is still ahead, plan backwards from it.

Mixed signals from the web are common. Some articles cite RM1 million or RM500,000 as the exemption level, which reflect earlier or different announcements. When sources conflict, follow LHDN’s own page and the latest version of the guideline, and keep a note of what you read and when.

Two examples with placeholder numbers

• Company A has revenue of RM2.4 million. Compared with the exemption figure on LHDN’s page, it falls below it and is therefore exempt on that wording, but should still keep a file note and be ready to receive e-invoices.
• Company B has revenue of RM4 million. That is above the exemption figure and within the “up to RM5 million” band, so the 1 January 2026 date applies.

Where to check each year

Re-test after each year-end, after a Budget, and after any LHDN update to the timeline page, whose “last updated” date is shown at the bottom. See the SME guide for next steps.

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