Short answer. Malaysia’s e-invoice implementation is staged by business size, and LHDN has allowed transitional relief periods during which certain compliance expectations are eased. Relief is not an exemption: it delays enforcement of specific points but does not remove the obligation. Use the relief window to fix data and systems, and check the current LHDN announcements for exact dates and terms.
Axecta provides accounting and e-invoice readiness for companies across Malaysia. Talk to our team.
In this article
- Timeline of phases
- What the transitional period covers
- What it does not cover
- How to use the relief period to get ready
- What to do if you miss the start date
- How we will keep this page updated
- Axecta’s role
- The official dates, as of the LHDN timeline page
- What LHDN’s FAQ says about relaxation
- Using the relaxation window well
- Frequently asked questions
Timeline of phases
The implementation has been described by LHDN as a series of phases starting with the largest businesses and moving to smaller ones. For each phase LHDN states a start date, the turnover range that triggers it and any special treatment.
To work out which phase applies to your company, read Does my Sdn Bhd need e-Invoicing?.
What the transitional period covers
A transitional or relief period is a time-limited easing announced by LHDN or the Ministry of Finance. Depending on the announcement, it may cover things like:
- A period during which LHDN will not enforce penalties for specified shortcomings, provided the business is making a genuine effort to comply.
- Allowances for how certain data fields are completed in the initial period.
- Permission for certain simplified approaches while systems are being set up.
The scope is defined in the announcement, so read the wording carefully. A relief for one point does not relieve every point.
What it does not cover
Need this done for you? Axecta’s accounting and e-invoice readiness team can handle this for your company. See the accounting and e-invoice readiness service.
- It does not turn a mandatory obligation into an exemption. See who qualifies for the exemption.
- It does not remove your need to keep correct accounting records.
- It does not necessarily bind your customers. A large customer in an earlier phase may require validated e-invoices from you before your own date.
- It usually ends on a stated date, after which normal enforcement applies.
How to use the relief period to get ready
- Month 1: confirm your phase and relief dates in writing.
- Clean the data. Customer details, TINs and item codes. See preparing your records.
- Pick and test the route. Portal, API or software.
- Run a pilot. Submit a small set of real invoices and review rejections.
- Train staff. Make sure whoever invoices knows how to correct errors.
- Reconcile monthly. Practise matching validated documents to the ledger before the relief ends.
What to do if you miss the start date
Act quickly. Begin issuing e-invoices as soon as you can, document what happened and why, and check whether any relief or grace applies. Ask LHDN about the right way to treat invoices issued in the gap rather than assuming. See also common e-invoice mistakes made by SMEs.
How we will keep this page updated
This article is reviewed monthly against LHDN and Ministry of Finance announcements. When the rules change, we update the date at the top and add an entry to the changelog. If you want an email when that happens, join the update list.
Axecta’s role
Axecta’s accounting team tracks LHDN announcements for clients, tells them what changed for their phase, and implements the changes in their records and systems.
The official dates, as of the LHDN timeline page
The LHDN timeline (updated 30 August 2026) lists four implementation dates: 1 August 2024 (turnover above RM100 million), 1 January 2025 (above RM25 million up to RM100 million), 1 July 2025 (above RM5 million up to RM25 million) and 1 January 2026 (up to RM5 million), and exempts taxpayers with turnover or revenue of less than RM3,000,000.
What LHDN’s FAQ says about relaxation
LHDN’s general FAQs describe a six-month interim relaxation period from the start of each phase, and give an example in which consolidated self-billed e-invoices could continue for a phase 3 business until 31 December 2025. The timeline page itself does not carry relaxation wording. News and blog reports about extended relaxation periods for smaller businesses disagree with each other, so confirm the position for your phase on LHDN’s site, in the latest guideline and with your adviser before assuming a date.
Using the relaxation window well
- Do not treat it as a delay of preparation. Use it to find the data issues that will cause rejections.
- Practise the whole monthly cycle at least twice: submit, validate, share, reconcile.
- Record every error type and its fix in a short runbook.
- Brief your customers on how you will issue and how they should supply TINs.
Frequently asked questions
What are the e-invoice implementation phases?
LHDN has set phases by business size, with start dates and turnover bands in its guideline. The details have changed over time, so use the current guideline.
What is the transitional period?
It is a time-limited easing announced officially, for example on enforcement of particular requirements. Its scope and end date are stated in the announcement.
Are there penalties for not complying?
Non-compliance can lead to consequences under the Income Tax Act 1967 and LHDN’s rules. Check the current provisions and any relief announced.
Where do I find updates?
On the LHDN website and MyInvois portal, and through your accountant. Axecta sends client updates whenever the rules change.
Is the relaxation period the same for all phases?
LHDN’s FAQ describes a six-month interim relaxation period for each phase from its start date. Check the current wording for your phase.
Does the relaxation period remove penalties permanently?
No. It is an interim easing. Confirm what it covers and when it ends.
Where is the changelog?
In the note near the top of this section, updated whenever we review the page.
Want updates when the rules change?
Axecta Management Services is a full-suite accounting, company secretarial and consulting firm in Kuala Lumpur, serving companies from SMEs to MNCs.
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Keep reading
Official sources to check
- LHDN announcements and e-Invoice guideline
- Ministry of Finance announcements
- Gazette
This article is general information and not legal, tax or accounting advice for your company. Rates, thresholds, deadlines and procedures change, so confirm current requirements with the sources above or with Axecta.