Malaysia Updates e-Invoicing Timeline – New Implementation Dates & Practical Guidance

Update June 13, 2025

Revised Turnover Tiers and Deadlines: The IRBM’s new guidelines introduce five turnover tiers with staggered compliance deadlines, extending the timeline for smaller businesses to comply with e-invoicing requirements until 2026, compared to the original plan which mandated compliance by 2025.
Grace Period and Compliance: A six-month grace period remains in effect, allowing taxpayers to issue e-invoices by the mandate date and resolve any non-compliance issues without penalties during this timeframe.
Purpose of E-Invoicing Implementation: The move to e-invoicing aims to close the VAT gap and digitize tax reporting as part of Malaysia’s broader digital tax strategy, ensuring real-time visibility for the IRBM while allowing businesses flexibility in how they integrate the system.

Update February 24, 2025

Revised e-Invoicing Timeline: Malaysia has introduced a phased implementation schedule for e-Invoicing based on annual turnover, with deadlines set from August 2024 to January 2026, allowing businesses to prepare adequately for compliance.
Interim Relaxation Measures: A six-month interim relaxation period for each implementation phase will enable businesses to gradually adopt e-Invoicing practices without immediate compliance pressure, allowing for consolidated invoicing and custom information input.
Preparation Recommendations: Businesses of varying sizes are encouraged to proactively enhance their invoicing systems, train staff, and utilize government resources during the interim period to ensure a smooth transition into the new e-Invoicing framework.

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