e-Invoicing in 2026:
The MyInvois Guide
Where Malaysia's e-Invoice mandate stands in 2026 — who's in scope now, the Phase 4 timeline and extended grace period, the RM1 million exemption, and how to start issuing validated e-invoices.
What is e-Invoicing?
An e-Invoice is a structured, machine-readable invoice that LHDN validates in real time before it reaches your buyer — a "clearance" model, with a design borrowing from the international PEPPOL standard. Once cleared through the MyInvois system, each document carries an IRBM Unique Identifier Number (UIN) and a QR code that anyone can use to verify it.
It applies to B2B, B2C and B2G transactions, and covers several document types: invoices, credit notes, debit notes, refund notes, and self-billed e-invoices.
The phased timeline
LHDN is mandating e-Invoicing in phases by annual turnover. As of 2026, the first three phases are in full enforcement:
| Phase | Annual turnover | Mandatory from |
|---|---|---|
| Phase 1 | Above RM100 million | 1 Aug 2024 (enforced Feb 2025) |
| Phase 2 | RM25m – RM100m | 1 Jan 2025 (enforced Jul 2025) |
| Phase 3 | RM5m – RM25m | 1 Jul 2025 (enforced Jan 2026) |
| Phase 4 | RM1m – RM5m | 1 Jan 2026 (see grace period below) |
The previously planned Phase 5 for the smallest businesses (RM150k–RM500k) has been cancelled.
The RM1 million exemption
In December 2025 the Cabinet raised the permanent exemption threshold from RM500,000 to RM1 million in annual turnover, taking an estimated 200,000 micro and small businesses out of scope. If you're below RM1m you aren't required to issue e-invoices, though you can opt in voluntarily. Note: if you supply larger, in-scope companies, they may still ask you for e-invoices to support their own tax position.
What 2026 means if you're RM1m–RM5m
Phase 4's go-live date of 1 January 2026 still stands — affected businesses are expected to be on MyInvois and issuing e-invoices. What changed is enforcement: the grace period has been extended, so LHDN will not impose non-compliance penalties as long as you show reasonable effort to transition.
- Grace period now runs to 31 December 2027.
- Full penalty enforcement begins 1 January 2028.
Treat this as a stabilisation window, not a reason to wait. Leaving it to late 2027 risks vendor bottlenecks and a scramble before hard enforcement.
The RM10,000 rule
From 1 January 2026, any single transaction of RM10,000 or more must be issued as an individual e-invoice — it cannot be rolled into a consolidated one. Consolidated e-invoices are otherwise still allowed during the grace period, submitted to MyInvois within 7 calendar days after month-end, and a buyer can request an individual e-invoice at any time.
How to submit
LHDN offers two main routes — pick based on your invoice volume:
MyInvois Portal
A free web portal at myinvois.hasil.gov.my where you key in or bulk-upload invoices. Fine for low volume and voluntary adopters; slow past roughly 50 invoices a month.
API / accounting software
Direct integration — via middleware or accounting packages with built-in MyInvois submission — that validates invoices straight from your system. Best for higher volume and fewer manual errors.
Either way, each validated e-invoice can carry up to 55 data fields — including buyer and seller TIN, your MSIC industry code, SST registration and line-item detail. For B2C sales where the buyer doesn't need a tax invoice, the general public TIN (EI00000000010) can be used.
What to do now
- Confirm your annual turnover and phase — and whether the RM1m exemption applies to you.
- Register or verify your business on MyInvois with an active TIN and up-to-date details.
- Clean your master data: customer TINs, MSIC codes and SST registration.
- Choose your route — the portal, or integrated accounting software.
- Flag every sale of RM10,000 or more so it's issued individually.
- Train your team and start issuing well before enforcement, not at the deadline.
Frequently Asked Questions
Get MyInvois-Ready Before Enforcement.
We'll confirm your phase, clean your customer and tax data, and set up an e-invoicing workflow that fits your volume — so you're compliant well ahead of the deadline.